Kenya protests Tanzania’s new trade laws that hurt regional market integration
By Kenneth Mwenda, July 30, 2025Kenya has formally protested against Tanzania’s new trade and business restrictions, saying they threaten regional trade and violate East African Community (EAC) agreements. In a press release issued on July 30, 2025, Kenya’s Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, expressed concern over discriminatory tax measures and licensing rules recently introduced by Tanzania.
The Finance Act 2025 and changes to the Excise Act 2019 in Tanzania have introduced new excise duties and an Industrial Development Levy of 10 per cent and 15 per cent. But Kenya is especially concerned about the 2025 Business Licensing Order, which bans non-Tanzanian citizens from operating in 15 business sectors, including micro and small industries. The order, which took effect immediately, imposes heavy penalties on violators and only protects existing license holders.
Kenya says these actions go against the EAC Common Market Protocol (CMP), which allows citizens of member countries to trade and invest across borders without unfair treatment.
“Kenya urges that these restrictions be lifted and Tanzania revert to agreed EAC policies,” the statement said.
Talks aim to reconcile
The Ministry of Investments, Trade and Industry (MITI) has been actively involved in forums with other EAC partners to address these concerns. Kenya recently joined the Extra-ordinary Sectoral Council on Finance and Economic Affairs (SCFEA), which directed the EAC Secretariat to prepare a list of fees and charges that go against regional trade rules. This list is expected by 30 August 2025.
Kenya and Tanzania have also planned further bilateral meetings. A technical meeting on tobacco trade is scheduled for August 4-5, 2025, in Arusha, followed by a Joint Trade Committee session between August 11-12, 2025,to discuss taxes, fees, and trade barriers.
Kenya maintains that dialogue and cooperation are the best way forward. The country is hopeful these discussions will restore trust and ensure fair treatment for all EAC nationals doing business across the region.
“We are one people, with one destiny,” Hon. Kinyanjui said, adding that Kenya remains committed to fairness, transparency, and the values of the EAC.