Kenya has officially raised concern over Tanzania’s recent move to bar foreigners from engaging in 15 types of small and medium scale businesses, warning that the directive goes against East African Community (EAC) agreements.

In a statement issued on July 31, 2025, Kenya’s Principal Secretary for East African Community Affairs, Dr. Caroline Karugu, said the directive risks undermining regional integration and the rights of EAC citizens to do business across borders.

The contested order, known as the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was signed by Tanzania’s Industry and Trade Minister Selemani Jafo. It prevents non-citizens including East Africans, from operating in sectors such as retail and wholesale trade, tour guiding, mobile money transfers, small-scale mining, salons, media and others. The penalties for violating the order include fines of at least TZS 10 million (approximately Ksh 600,000),  cancellation of permits and jail terms of up to six months.

Kenya has argued that the move contradicts key provisions of the EAC Common Market Protocol, specifically Articles 13(1), 13(3)(a), 13(5), 13(8) and 13(9), which allow the free movement of people and services and the right of establishment for citizens of EAC member states.

“This 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,” read part of the statement by Dr. Karugu.

She added that she has formally written to the EAC Secretariat to alert them on the matter and push for Tanzania to review the directive in line with the EAC Treaty and Community Laws.

Kenya’s protest comes just days after Tanzania’s policy sparked debate across the region, with many observers warning that such restrictions could create barriers to trade and hurt regional unity.