Principal Secretary in the State Department for East African Community Affairs, Dr Caroline Karugu, has reassured that Kenyan traders in Tanzania will remain unaffected following the enactment of the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, by its East African neighbor.
The PS in a statement issued on October 2, 2025, said the development follows consultations between the Republic of Kenya and the United Republic of Tanzania.
"We are pleased to report that through constructive dialogue in the just concluded bilateral consultation between the Republic of Kenya and the United Republic of Tanzania, the two Governments reached an understanding," Karugu said.
The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 order was issued on July 28, 2025, and prohibits non-citizens from obtaining new licenses or renewing existing ones for 15 specified small-scale business activities.
The order, which took effect immediately, aims to promote Tanzanian-led growth and expand economic opportunities for citizens by reserving certain business sectors for locals.
Existing non-citizen business owners in these sectors can continue operating until their current licenses expire, but they will not be able to renew them.
The Kenyan government had raised concerns over inconsistencies with the East African Community (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, services, and the right of establishment for citizens of EAC partner states.
However, according to Karugu, the just-concluded bilateral consultations between Kenya and Tanzania yielded an important breakthrough, with both governments reaching a clear understanding that ensures Kenyan enterprises remain unaffected.
Tanzanian authorities further reassured Kenya that no business owned by Kenyan nationals has so far been affected by the licensing order.
“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,” the statement clarified.
As a result, Kenyan traders engaged in legitimate business activities across Tanzania have been encouraged to continue operating normally.
“Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue to run their businesses without fear of interference,” Karugu said.
The PS also advised Kenyan nationals to make use of established diplomatic channels in the event of challenges.
“We further encourage Kenyan nationals running businesses in the United Republic of Tanzania to engage the Kenyan High Commission in the event of any distress and for information,” the Principal Secretary added.
The Government of Kenya reiterated its appreciation for the commitment shown by Tanzania to uphold the spirit of cooperation and integration within the East African Community framework.