Government assures Kenyan traders over Tanzanian business licensing order
Concerns arose after the publication of the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, on July 28, which appeared to limit certain business activities for foreigners.
The Kenyan government has assured its citizens operating businesses in Tanzania that they will not be affected by a recent licensing order issued by the Tanzanian authorities.
In a statement on Friday, Dr Caroline Karugu, Principal Secretary in the State Department for East African Community Affairs, said that after bilateral consultations, Tanzania has provided assurances that Kenyan nationals will not be impacted.
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“The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured that no Kenyan business will be affected even in future,” Karugu said.
She encouraged Kenyans in Tanzania to continue running their enterprises confidently and to reach out to the Kenyan High Commission if any challenges arise.
Concerns arose after the publication of the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, on July 28, which appeared to limit certain business activities for foreigners.
Nairobi engaged Dar es Salaam, pointing out that the directive could conflict with the East African Community (EAC) Common Market Protocol, which guarantees the free movement of people, services, and the right to establish businesses across member states.
In terms of the Tanzania Citizenship Act, Cap 357 R.E. 2023, a non-citizen is defined as a person who is not a citizen of the United Republic of Tanzania.
It is important to note that it is not prohibited for foreigners to establish businesses in Tanzania; indeed, the government has encouraged foreign investors to invest in the country.
However, the order came after complaints from local business owners who were concerned about an influx of non-citizens engaging in small businesses and “local” wholesale and retail trade, creating unfair competition and losses for local traders.
Non-citizens were reportedly establishing businesses in the same areas as locals, such as Kariakoo Market, and selling products at lower prices, which undermined the presence of local traders.
These concerns prompted the President of Tanzania to form a ministerial committee to investigate and provide recommendations on addressing the challenges faced by local traders.
The committee’s recommendations included specifying the types of businesses that non-citizens should not carry out.
Kenya welcomed the reassurance from Tanzania, saying it reflects the spirit of cooperation and integration within the EAC.
“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.
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