Dar es Salaam – Tanzania’s decision to bar foreign nationals from operating in 15 small-scale business sectors has stirred tensions with neighbouring Kenya, raising fresh questions about the strength of regional integration under the East African Community (EAC).
The directive, announced this week by Trade Minister Selemani Jafo, excludes foreigners from engaging in mobile money transfers, small-scale mining, tour guiding, beauty salons, curio shops, on-farm crop buying, and running radio or TV stations, among others. Jafo said the measure aims to protect local traders and push foreign investors towards larger-scale ventures.
“The informal sector must benefit Tanzanians first,” Jafo said, noting a growing presence of foreigners, including Chinese nationals, in retail spaces and roadside trades traditionally held by locals.
The announcement was met with applause in Dar es Salaam’s Kariakoo market, where traders have long complained about unfair competition and heavy-handed tax policies. Last year, a strike by traders accused Chinese businesspeople of crowding out locals in the bustling wholesale district.
Severine Mushi, head of the Kariakoo traders’ association, told The Citizen newspaper that the move was overdue. “This protects our livelihoods,” he said.
Violators face a fine, six months in jail, and deportation. Work permits and residency documents may also be revoked.
But across the border, the directive has triggered an uproar. Kenya’s Trade Minister Lee Kinyanjui described the move as a blow to the EAC’s free movement protocols and warned it could damage economic relations.
“This ban hurts both economies,” Kinyanjui said in a statement on Wednesday. “Bilateral talks are urgently needed.”
Kenya’s National Assembly Trade Committee chair Bernard Shinali told the Daily Nation that Tanzania’s action risked setting off retaliatory measures. “Many Tanzanians work in our mining sites too. If this stands, we must review our cooperation,” he said.
Veteran hotelier Mohammed Hersi joined critics of the move, warning on X (formerly Twitter) that economic protectionism would backfire. “Tanzania should focus on the bigger picture. Isolation never builds economies,” he posted.
Kenyans on social media also slammed the move, accusing Tanzania of undermining EAC unity. One user noted, “Tanzanians run all kinds of small businesses in Kenya freely. This decision shows Tanzania was never really invested in the EAC.”
The incident adds to a long history of friction between the two countries. Tanzania has frequently imposed import restrictions and tariffs that irked its neighbours.
Earlier this year, diplomatic ties were tested again when several Kenyans were deported after travelling to Dar es Salaam to follow the trial of opposition figure Tundu Lissu. Among them was activist Boniface Mwangi, who was reported missing and later claimed to have been tortured.
Despite the tensions, Kenya’s Foreign Minister Musalia Mudavadi noted in May that over 250,000 Kenyans live and work in Tanzania, urging both countries to maintain cordial relations.
Tanzania heads into general elections in October, with the ruling Chama Cha Mapinduzi (CCM) party widely expected to retain power.
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