By Rafiyat Sadiq
A new directive by the Tanzanian government prohibiting foreign nationals from owning and operating businesses in 15 small-scale sectors has triggered backlash in neighbouring Kenya and renewed concerns over regional trade relations.
The sweeping ban affects activities such as mobile money transfers, tour guiding, small-scale mining, crop buying on farms, beauty salons, curio shops, and the establishment of radio and television operations.
Tanzania’s Minister of Trade, Selemani Jafo, who announced the policy, cited the increasing encroachment of foreigners, particularly Chinese nationals, into informal sectors traditionally reserved for Tanzanians.
“This decision is aimed at protecting the livelihoods of Tanzanian traders,” Jafo said, while urging foreigners to invest in large-scale enterprises instead.
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Locally, the move has drawn support.
Severine Mushi, head of the Kariakoo traders’ association, welcomed the decision, noting that small traders had long been frustrated by foreign competition.
In 2023, traders in Kariakoo, one of Dar es Salaam’s busiest markets, staged a strike to protest what they described as unfair taxation and competition from Chinese businesses.
Under the new regulations, violators face fines, six months’ imprisonment, and revocation of their visas and work permits.
Nairobi Reacts
Kenya, however, has reacted sharply. Trade Minister Lee Kinyanjui said the ban contradicts the principles of the East African Community (EAC), which guarantees the free movement of people and goods across its eight member states.
“It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues,” Kinyanjui stated on Wednesday, warning that the decision could hurt both economies.
Chairman of Kenya’s National Assembly Trade Committee, Bernard Shinali, echoed similar sentiments and hinted at possible retaliatory measures. He pointed out that Tanzanians are also engaged in business within Kenya, especially in mining.
“It is clear that Tanzanians have gone too far, and we should cut links with them,” Shinali said.
Veteran hotelier Mohammed Hersi also criticised the policy, arguing that protectionism would stifle Tanzania’s economic growth rather than encourage it.
“Sometimes, it is important to focus on the bigger picture. Protectionism will never help a country to thrive,” Hersi posted on X.
Public Outcry and Rising Diplomatic Strain
The development has sparked widespread discussion online, with many Kenyans accusing Tanzania of undermining the EAC integration agenda.
“Tanzanians are doing all manner of small businesses in Kenya without any hindrance. It’s clear Tanzania has never been serious in making the EAC work,” one user wrote.
Tanzania and Kenya have had a history of economic and diplomatic friction, often revolving around trade barriers and import bans. Tanzania’s recent imposition of protective tariffs has also drawn criticism from other regional partners.
In May, Kenya’s Foreign Affairs Minister, Musalia Mudavadi, had urged both countries to maintain cordial relations, pointing out that around 250,000 Kenyans live, work, or do business in Tanzania.
His appeal followed a diplomatic row in which several Kenyans were deported after travelling to Dar es Salaam to observe the trial of Tanzanian opposition leader Tundu Lissu. Kenyan activist Boniface Mwangi and Ugandan journalist Agather Atuhaire were reported missing before later alleging they were tortured and sexually abused in custody.
Tanzania is set to hold general elections in October, with the ruling Chama Cha Mapinduzi (CCM) party expected to maintain its hold on power.
SOURCE: BBC
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.
