Tanzania has introduced a new ban preventing foreign nationals from running or owning small-scale businesses, a move that has drawn praise locally but sparked outrage in neighboring Kenya.
Under the directive, foreigners are barred from operating in 15 sectors, including mobile money services, tour guiding, beauty salons, curio shops, small-scale mining, on-farm crop buying, and even setting up radio and television stations.
Trade Minister Selemani Jafo said the decision was made because foreign nationals had increasingly moved into the informal sector — areas the government believes should be reserved for Tanzanians. “We’ve welcomed this decision because it protects the livelihoods of Tanzanian traders,” said Severine Mushi, head of the Kariakoo traders’ association, in an interview with The Citizen.
Locally, the announcement has been seen as a way to curb what many view as foreign encroachment, particularly by Chinese traders. In 2023, Dar es Salaam’s Kariakoo market saw protests over heavy taxes and claims of unfair competition from foreign-owned shops. Violators of the new law could face fines, up to six months in prison, and the loss of visas or work permits.
Minister Jafo also said he hopes the restrictions will push foreign investors toward larger-scale ventures.
However, Kenya’s leadership has sharply criticized the decision, arguing it breaches East African Community (EAC) agreements that ensure free trade and movement within the bloc.
“It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues,” Kenyan Trade Minister Lee Kinyanjui said, warning the policy will “hurt” both nations’ economies.
Bernard Shinali, chair of Kenya’s National Assembly Trade Committee, cautioned that the ban could provoke reciprocal action. “There are many Tanzanians working in our mining sites too… It is clear that Tanzanians have gone too far, and we should cut links with them,” he said, as reported by The Daily Nation.
Veteran Kenyan hotelier Mohammed Hersi also voiced concern, writing on X: “Sometimes, it is important to focus on the bigger picture… Protectionism will never help a country to thrive.”
The controversy comes against a backdrop of recurring economic and political tensions between the two neighbors. In May, Kenyan Foreign Affairs Minister, Musalia Mudavadi, highlighted that about 250,000 Kenyans live or work in Tanzania, underscoring the importance of maintaining good relations.
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