The East African Community (EAC) Secretariat has issued a stern warning to Tanzania regarding its recent directive banning non-citizens, including Kenyans, from operating within 15 business sectors.
In a statement, EAC Secretary General Veronica Nduva noted that the restrictions imposed by Tanzania were in violation of the commitments enshrined in the EAC Common Market Protocol.
This protocol guarantees the free movement of goods, services, labour and capital across member states.
"It is important to remind all Partner States that unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol. This was reaffirmed by the Attorneys General through the Sectoral Council on Legal and Judicial Matters in November 2024," the statement reads in part.
Tanzania's directive, which affects foreign traders, including those from Kenya, Uganda, Rwanda and Burundi, has attracted criticism for undermining the principles of regional cooperation.
The ban targets small-scale businesses, such as retail shops, food vendors and transport services, which were previously liberalised under the Protocol.
The move has particularly impacted traders operating in Tanzania, including those from Kenya, many of whom are facing licence cancellations due to the new regulations.
According to a statement by Tanzania's Minister for Industry and Trade, Selemani Saidi Jafo, foreigners found to be engaging in any of the 15 banned business activities will be liable to a fine of up to Tsh10 million (Ksh502,927) and a prison sentence of up to six months.
Tanzania has defended the directive as a measure to protect local enterprises. However, the East African Community (EAC) insists that it violates Article 13 of the Protocol, which prohibits discrimination against citizens of other Partner States in the provision of services.
The EAC Secretariat has launched a compliance review to assess Tanzania's adherence to its obligations. The findings of this analysis will be presented at the upcoming Sectoral Council meeting on Trade, Industry, Finance and Investment.
"All Partner States are encouraged to adhere to their commitments in order to maintain the integrity of our regional single market," the EAC statement continued.
The EAC's statement follows a letter from Kenya requesting that the neighbouring country be compelled to reverse the ban.
