The government has assured Kenyans doing business in Tanzania that they will not be affected by the recently introduced Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025.
This follows a successful round of bilateral consultations between Nairobi and Dodoma, where both governments reached an understanding on how the new regulations will be applied.
Principal Secretary for East African Community Affairs, Caroline Karugu, said in a statement that the order would not disrupt the operations of Kenyan traders currently engaged in business in Tanzania.
“The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured no Kenyan business will be affected even in future,” she said.
“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 Tanzanian government’s reassurances come after weeks of concern among Kenyans, especially following the order issued on July 28, 2025, which prohibited non-citizens from participating in a wide range of business activities.
Many feared the measures would lead to closures and job losses for cross-border traders, a significant number of whom are Kenyan nationals.
The order, gazetted by Tanzania’s Ministry of Industry and Trade under Government Notice No. 487A, was introduced after amendments to the Finance Act, 2025.
It reserves at least 15 business activities exclusively for Tanzanian citizens, including retail and wholesale trade, mobile money operations, repair of electronics, salons, parcel delivery, clearing and forwarding, tour guiding, real estate brokerage, and small-scale mining.
Non-citizens are barred from obtaining new licenses in these sectors, and existing permits will not be renewed once they expire.
Kenya had earlier raised concerns over the new directive stating that it risked undermining regional integration efforts under the East African Community, which guarantees free movement of labour and the right of establishment among partner states.
The diplomatic understanding is expected to calm anxieties that had gripped cross-border traders in recent weeks.
