Kenyan business owners operating in Tanzania have been spared from President Samia Suluhu’s recent restrictions on foreign-owned small and medium enterprises. This follows bilateral consultations between Nairobi and Dodoma, as confirmed by the State Department of the East African Community on Friday, October 3.
The ban, announced in July by Tanzania’s Minister for Industry and Trade, Selemani Saidi Jafo, had prohibited foreigners from engaging in several small-scale businesses. These included mobile money transfers, electronic repairs, salon services (outside hotels or tourism), cleaning services, parcel delivery, tour guiding, running radio or TV stations, operating museums and curio shops, brokering, real estate, and clearing and forwarding.
Foreigners found engaging in banned ventures would face fines of up to Tsh10 million (Ksh502,927) and a prison sentence of up to six months. Tanzanians aiding such businesses also risked a three-month jail term and a Tsh5 million fine (Ksh251,463).
However, following dialogue, the Tanzanian government clarified that Kenyan-owned enterprises would not be affected by the order. “We are pleased to report that through constructive dialogue, both Governments reached an understanding. No Kenyan business has been affected and none will be in the future,” the statement noted.
The reassurance comes as a relief for thousands of Kenyans in Tanzania, many of whom had expressed concern over potential job losses, reduced revenues, and strained cross-border trade. The decision also helps ease tensions that had been brewing between the two East African nations.
Minister Jafo further explained that foreigners already holding valid licenses to operate in the restricted sectors would be allowed to continue until their permits expire.
For now, Kenyans in Tanzania can continue running their businesses without fear of disruption, a move that safeguards regional trade cooperation within the East African Community.
