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.
Tanzania Makes U-Turn on Ban Affecting Foreign Businesses
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.
Also Read: Tanzania Bans Kenyans from Running Select Businesses (FULL LIST)
15 Business Ventures That Foreigners Can’t Operate
Some of the businesses prohibited for foreigners include wholesale and retail trade (excluding supermarkets and specialized product outlets), small-scale mining, mobile money transfers, and ownership of radio and television broadcast stations.
The affected businesses included:
- Wholesale and retail trade (excluding supermarkets and specialised outlets)
- Mobile money transfers
- Mobile phone and electronic device repairs
- Salons (except in hotels or for tourism)
- Cleaning services
- Small-scale mining
- Postal and parcel delivery services
- Local tour guiding
- Operation of radio and TV stations
- Museums and curio shop operations
- Brokerage or agency in business and real estate
- Clearing and forwarding services
- On-farm crop purchasing
- Gambling machine operations (outside casinos)
- Ownership and operation of micro and small industries
Also Read: Kenya Takes Action After Tanzania Bans Foreigners from Select Businesses
Kenya Takes Action
On August 7, the Kenyan government, through Foreign Affairs Cabinet Secretary Musalia Mudavadi, took diplomatic steps in response to Tanzania’s ban.
Mudavadi outlined several measures the Kenyan government has taken in response:
- Kenya has formally informed the East African Community (EAC) Secretariat of the violations and requested a regional meeting of ministers responsible for finance, trade, investment, and economic affairs to address both tariff and non-tariff barriers imposed by partner states.
- The Ministry of Foreign Affairs and International Trade will initiate bilateral talks with the United Republic of Tanzania to seek a resolution that protects Kenyan interests.
- Through the High Commission in Dar es Salaam, the ministry will assess the potential economic impact on Kenyan businesses currently operating in Tanzania.
- The Ministry of EAC Affairs will engage regional counterparts and the EAC Secretariat to seek redress in line with the Treaty for the Establishment of the East African Community, its protocols, and associated laws.
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