Kenya has lodged a formal protest against Tanzania’s latest trade and business regulations, terming them discriminatory and a breach of the East African Community (EAC) Common Market Protocol. The Ministry of Investments, Trade and Industry (MITI) raised concern over Tanzania’s Finance Act 2025, which introduces excise duties and an Industrial Development Levy at rates of 10% and 15% respectively, as well as new restrictions on business activities by non-citizens.
At the centre of Kenya’s protest is the newly gazetted Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which came into effect on July 28. The order bars non-citizens from participating in 15 categories of business, including mobile money transfers, electronics repair, salon operations, tour guiding, and ownership of micro and small industries. Non-compliance could result in a fine of at least TSh10 million (Sh505,800), six months’ imprisonment, and possible visa revocation. Tanzanians aiding non-citizens also face penalties.
Cabinet Secretary Lee Kinyanjui warned that the measures threaten the spirit of regional integration. “The Government of Kenya has noted with concern the imposition of new and discriminatory tax measures by the United Republic of Tanzania, which threaten the regional trade gains,” he said. He further pointed out that Article 13 of the EAC Common Market Protocol expressly forbids treating nationals of other partner states less favourably than one’s own citizens.
Kenya has urged Tanzania to withdraw the restrictions and revert to measures in line with the EAC protocols. “The Business Licensing Order, which seems to be criminalising lawful EAC investments, will hurt both our economies,” Kinyanjui cautioned, calling for urgent bilateral talks.
Diplomatic engagement is underway, with Kenya proposing technical meetings and joint sectoral council sessions to address the issues. A technical meeting on tobacco trade is scheduled for August 4–5 in Arusha, followed by a Joint Trade Committee session on August 11–12. The EAC Secretariat has also been directed to compile a list of potentially non-compliant tax measures by August 30, ahead of another sectoral council meeting in September.
Kenya reiterated its commitment to regional unity, stressing that cross-border trade should be guided by the principles of non-discrimination, transparency, and equity.
