TANZANIA MAKES U-TURN ON BAN AFFECTING FOREIGN BUSINESSES

Kenya and Tanzania have reached an understanding following consultations on the Business Licensing order that banned Kenyans and other foreign nationals from operating in 15 business sectors.
In a statement dated October 2, the Government of Kenya announced that it had engaged in bilateral consultations with Tanzania, and through constructive dialogue, the two countries reached an understanding.
“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,” read the statement. This followed Kenya’s earlier concerns over the order, citing inconsistencies with key provisions of the EAC Common Market Protocol, which guarantees the free movement of persons, services, and the right of establishment for citizens of partner states.
The Tanzanian government banned Kenyans and other foreign nationals from engaging in 15 business activities. The move was aimed at protecting local entrepreneurs and reshaping the country’s domestic economic policy.
The directive, issued through Government Notice No. 487A dated July 28, 2025, stipulated that licensing authorities shall no longer issue or renew business licenses for foreigners to operate in the specified sectors. The Government of Tanzania reaffirmed its commitment to resolving such matters through dialogue and mutual respect, while strengthening diplomatic relations between the two nations.
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 the future. 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,” read part of the statement.
“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 the future.”
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.
Furthermore, Kenyan nationals operating businesses in the United Republic of Tanzania have been encouraged to contact the Kenyan High Commission in the event of any distress or for information.