EAC warns partner states against unilateral directives undermining Common Market Protocol
EAC Secretary General Veronica Nduva reminded all partner states of their binding obligations under the protocol, which was adopted to promote regional integration by removing trade and investment barriers and allowing the free movement of citizens and businesses.
The East African Community has raised concern over unilateral actions by some partner states that it says threaten the rights and freedoms guaranteed under the EAC Common Market Protocol, warning that such moves are against regional commitments.
In a statement on Thursday evening, EAC Secretary General Veronica Nduva reminded all partner states of their binding obligations under the protocol, which was adopted to promote regional integration by removing trade and investment barriers and allowing the free movement of citizens and businesses.
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She said countries are expected to stick to sectors and services they had already agreed to liberalise and should not backtrack on previous commitments outlined in Annexe V of the EAC Common Market Schedule.
“The Protocol explicitly emphasises that Partner States shall not reverse or restrict sectors and trades they have previously liberalised,” Nduva said.
She noted that some states have recently taken unilateral steps that contradict these commitments and cautioned that such actions go against the spirit and letter of the agreement.
“It is important to remind all Partner States that unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol,” she said, adding that this position had also been reaffirmed by the Attorneys General through the Sectoral Council on Legal and Judicial Matters in November 2024.
The Secretariat, Nduva said, is currently analysing the level of compliance by each partner state and will highlight any violations during the upcoming meeting of the Sectoral Council on Trade, Industry, Finance and Investment.
“All Partner States are encouraged to adhere to the obligations they have committed to to maintain the integrity of our regional single market,” she added.
The statement comes after Kenya formally protested a new directive issued by Tanzania barring foreigners from engaging in several business activities.
Kenya's Principal Secretary for EAC Affairs, Caroline Karugu, confirmed on Thursday that the country had petitioned the EAC Secretariat to intervene and push Tanzania to amend or withdraw the order.
The directive, announced by Tanzania’s Trade and Industry Minister Selemani Saidi Jafo, bans non-citizens from participating in 15 business sectors and introduces strict penalties, including fines of at least TSh10 million, permit cancellations, and jail terms of up to six months.
Karugu said the order directly violates key provisions of the Common Market Protocol, including Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9), which guarantee the right of establishment, movement, and cross-border service provision.
“The Order undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the EAC Common Market Protocol,” she said.
Kenya’s Trade Cabinet Secretary Lee Kinyanjui added that while Kenya prefers a diplomatic solution, it is also considering retaliatory measures if the issue is not resolved.
“The EAC remains committed to fostering a seamless regional integration process and calls on all Partner States to uphold the principles enshrined in the establishing Treaty and Common Market Protocol,” Nduva said.
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