Dar es Salaam, July 30, 2025 – Tanzanian President Samia Suluhu Hassan’s administration has introduced a new regulation, the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, banning foreign nationals, including Kenyans, from operating in 15 small and medium-sized business sectors.
The directive, issued on July 28, 2025, by Minister for Industry and Trade Selemani Saidi Jafo, aims to protect local entrepreneurs and prioritize economic opportunities for Tanzanian citizens, particularly in grassroots enterprises. However, the move has sparked concerns among Kenyan traders and could strain trade relations within the East African Community (EAC).
The decision follows complaints from Tanzanian locals, particularly in Dar es Salaam’s Kariakoo market, about foreign nationals dominating small-scale businesses. Kenyan traders, who form a significant portion of the estimated 40,000 foreigners living and working in Tanzania, face significant impacts, with violators risking fines up to TSh 10 million (approximately KSh 495,000), six months in prison, or visa cancellation.
Tanzanian citizens aiding foreigners in these sectors could face fines of TSh 5 million (KSh 251,000) or three months in jail.
The banned business sectors include:
- Retail and wholesale trade (excluding supermarkets and specialized product outlets)
- Mobile money transfers
- Repair of mobile phones and electronic devices
- Salon operations (unless linked to hotels or tourism)
- Home, office, and environmental cleaning services
- Small-scale mining
- Postal and parcel delivery services
- Local tour guiding
- Operating radio or television stations
- Operating museums or curio shops
- Business brokering
- Real estate brokering
- Clearing and forwarding services
- On-farm crop purchasing
- Gambling operations outside licensed casinos
Kenyan leaders, including Senator Kiprotich Arap Cherargei and Trade Committee Chairman Benard Shinali, have criticized the move as a violation of EAC trade protocols, urging retaliatory measures. Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Lee Kinyanjui, called for Tanzania to lift the restrictions, warning that they undermine regional economic integration. Meanwhile, Tanzanian traders and manufacturers, such as the Kariakoo Traders’ Association, have supported the ban, citing the need to level the playing field for local businesses.
The directive allows foreigners with valid licenses to continue operations until their permits expire but prohibits new licenses or renewals in these sectors. As Kenya and Tanzania navigate this trade dispute, analysts warn of potential disruptions to cross-border commerce and EAC cooperation, especially with Tanzania’s general election looming in October 2025.
