Kenya has officially protested a new directive by Tanzania that bans foreigners from conducting a range of business activities, warning that the move could derail progress made under the East African Community’s integration agenda.

East African Community Principal Secretary Caroline Karugu confirmed on Thursday that Kenya has petitioned the EAC Secretariat, urging it to intervene and compel Tanzania to review the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025.

The directive, issued earlier this week by Tanzania’s Trade and Industry Minister Selemani Saidi Jafo, blocks non-citizens from engaging in 15 different business categories.

It further imposes strict penalties, including a minimum fine of TSh10 million (equivalent to Sh501,584), cancellation of business permits and visas, and possible jail terms of up to six months.

The order also instructs Tanzanian licensing agencies to stop issuing or renewing licenses for non-citizens operating within the affected sectors.

 Karugu said the directive directly contradicts the EAC Common Market Protocol, especially Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9), which uphold the free movement of persons, the right of establishment, and the provision of services within the region.

“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.

In a formal letter sent to the EAC Secretariat, Kenya is requesting the regional body to remind Tanzania of its obligations under the EAC Treaty and community laws and push for the withdrawal or amendment of the new rules.

“I have officially written to the EAC Secretariat to notify the United Republic of Tanzania to review the Order to ensure full compliance with the EAC Treaty and Community Laws,” noted the PS.

Kenya's complaint comes amid rising anxiety among Kenyan nationals doing business in Tanzania, who risk being pushed out of the market if the new measures take effect.

While Tanzanian authorities maintain the directive aims to shield local entrepreneurs and micro-businesses, critics argue the move undermines regional cooperation and amounts to economic exclusion.

Kenya’s Trade Cabinet Secretary Lee Kinyanjui on Wednesday added that while Kenya is prioritising dialogue, it is not ruling out retaliatory measures.

“On whether Kenya will retaliate... Yes, that is one of the cards on the table but we first want to exhaust the diplomatic channels,” he said.

The standoff now places diplomatic pressure on the EAC Secretariat to resolve a dispute that could further weaken investor confidence in the bloc, which has already been experiencing frequent trade tensions between member states.