Kenya’s transport industry has voiced strong objections to Tanzania’s recent prohibition on foreign-owned small businesses, warning the move undermines East African Community (EAC) economic integration and threatens livelihoods of Kenyan operators active in Tanzania.
The ban, which bars foreigners including transport operators from engaging in sectors like mobile money, phone repair shops, salons and informal retail, is seen by Kenyan transport and logistics firms as a direct violation of EAC freedoms and a destabilizing non‑tariff barrier.
The East African Business Council (EABC) and Kenya Private Sector Alliance have condemned the policy, arguing it clashes with the Common Market Protocol which guarantees free movement of goods, services and labor across member countries.
Transport associations say the policy has prompted a sudden spike in permit denials and operational disruptions for Kenyan drivers and passenger shuttle firms operating across the border.
Kenyan shuttle van operators, many of whom serve Tanzanian cities like Arusha and Dodoma, are facing mounting uncertainty. They report that their drivers are being denied licenses to operate, fined, and in some cases detained.
Transport providers in northern Kenya and border regions including tour firms and commodity hauliers warn these disruptions are eroding cross‑border trade viability and pushing businesses to reroute via longer alternatives.
The Kenya International Freight & Warehousing Association has also highlighted growing delays and cost spikes as informal transport operators cease operations abruptly. Some companies are now redirecting goods through Uganda or Rwanda to reach Tanzanian markets an alternative that brings added expense and logistical complexity.
Analysts say the policy could provoke retaliatory measures from Kenya, potentially spiraling into a broader trade conflict. The EAC secretariat has been urged to intervene and facilitate dialogue.
In past instances such as the denial of entry for Tanzanian tour vans at JKIA in Nairobi EAC leadership stepped in to resolve tensions and restore compliance with agreed rules. Observers now expect a repeat intervention to contain the current standoff.
This dispute compounds other recent border tensions. Kenya has previously blocked Tanzanian milk imports and banned Tanzanian-registered tour vehicles, while Tanzania has introduced high fees for Kenyan businesses and tightened work permit regulations policy reversals that continue to strain EAC unity.
The transport sector’s reaction reflects broader frustration. Cargo truck operators and passenger shuttle firms warn that unless swift resolution is reached, the disruptions will bleed across the regional value chain, affecting farmers, hospitality, trade flows and even tourism.
Industry leaders now call on both governments to honour EAC obligations and use regional mechanisms to reverse harmful unilateral policies. They emphasize that integration depends on trust and predictable trade and mobility frameworks and that erosion of these foundations places the entire EAC project at risk.
Written By Ian Maleve
