Kenya protests Tanzania’s business licensing order, cites breach of EAC protocol
By Faith Lagat, July 31, 2025Kenya has officially protested Tanzania’s recent move to bar non-citizens from operating in select sectors, warning that the directive violates the East African Community (EAC) Common Market Protocol and threatens to roll back regional economic integration gains.
The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, issued by the United Republic of Tanzania, restricts foreigners from engaging in 15 specified business activities.
The order also introduces harsh penalties, including fines of not less than 10 million Tanzanian shillings, imprisonment for up to six months, and revocation of visas and residence permits for violators. In addition, it prohibits authorities from issuing or renewing licenses for non-citizens in the restricted sectors.
Kenya has termed the directive a direct breach of the EAC Common Market Protocol, particularly Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9), which guarantee the free movement of persons and services and the right of establishment across partner states.
Diplomatic protest lodged with EAC secretariat
In a statement issued on July 31, 2025, the Ministry of East African Community, ASALs, and Regional Development described the Tanzanian order as a setback to regional unity. Principal Secretary Caroline W. Karugu said Kenya had formally written to the EAC Secretariat seeking urgent intervention.
“The Order undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the East African Community Common Market Protocol,” Karugu said.
She added that she had officially notified the EAC Secretariat and urged it to request Tanzania to review the order and bring it into full alignment with the EAC Treaty and Community laws. Kenya maintains that the move runs counter to efforts aimed at fostering open markets, fair competition, and cross-border investment opportunities.
Concern over future of integration
The letter, dated July 30, 2025, and addressed to EAC Secretary General Veronica Nduva, further urges the regional body to remind Tanzania of its obligations under the Common Market framework.
Kenya’s protest comes amid growing concerns about uneven policy implementation among EAC partner states. The government said the order could discourage Kenyan entrepreneurs operating in Tanzania and erode confidence in regional agreements designed to improve trade and mobility.
The latest development has reignited calls for stronger policy coordination within the EAC to safeguard the vision of seamless integration and shared prosperity across the region.
A section of Kenyan political and business leaders has sharply criticised the Tanzanian directive, warning that it could strain cross-border trade and diplomatic ties. Murang’a Senator Joe Nyutu alleged that the move specifically targets Kenyan nationals, citing what he described as a history of unfriendly policies.
“We have consistently seen Tanzania act with hostility towards Kenyans. This is not how they treat nationals from other countries,” Nyutu said, referencing tensions that date back to the administration of the late President John Magufuli.