Kenyan business owners operating in Tanzania can breathe a sigh of relief following reassurances from the Government of the United Republic of Tanzania that their enterprises will not be affected by a controversial new business order.
The assurance follows high-level bilateral consultations between Kenya and Tanzania to address concerns raised by Nairobi regarding the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025.
The order, published on July 28, 2025 through Government Notice No. 487A, sparked concerns over potential violations of the East African Community (EAC) Common Market Protocol.
The Government of Kenya, through the State Department for East African Community Affairs, had earlier formally expressed its reservations about the order.
According to the Ministry, several provisions of the directive appeared inconsistent with Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9) of the EAC Common Market Protocol, which guarantee the free movement of persons, services, and the right of establishment for citizens across partner states.
However, after what officials described as “constructive dialogue,” the two nations reached a mutual understanding. Tanzania confirmed that no Kenyan-owned business has been affected by the order since its publication, and importantly, assured that none will be targeted in the future.
ALSO READ:
Kagwe defends four per cent sugar levy amid pushback from stakeholders
“Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue to run their businesses without fear of interference,” said Dr. Caroline W. Karugu, Principal Secretary in the State Department for East African Community Affairs.
Dr. Karugu encouraged Kenyan nationals with businesses in Tanzania to continue engaging the Kenyan High Commission whenever they face any challenges or require information.
The Kenyan Government welcomed Tanzania’s clarification and praised the spirit of cooperation and regional integration demonstrated during the consultations. “We wish to reaffirm our commitment to resolving issues through dialogue and mutual respect and continue to enhance the diplomatic relations between the two Nations,” Dr. Karugu added.
The reassurance is a significant boost for many Kenyan entrepreneurs, especially those engaged in retail, hospitality, transport, and manufacturing sectors in Tanzania. Over the years, economic ties between the two countries have deepened, with cross-border trade and investment playing a vital role in supporting livelihoods and promoting regional growth.
ALSO READ:
The EAC Common Market Protocol, which came into force in 2010, remains a cornerstone of integration in the region, allowing citizens of member states to work, invest, and live across borders with fewer restrictions. Any perceived deviation from the protocol often sparks concerns, as seen with the July directive.
With the latest development, both governments have signaled a shared commitment to upholding the principles of the protocol and strengthening bilateral relations.
The Ministry of East African Community Affairs reiterated that it will continue to closely monitor developments and maintain open channels of communication with its Tanzanian counterparts to ensure a predictable business environment for Kenyan investors.
By Rodgers Wagura
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
