Kenya Reassures Citizens Amid Tanzania's New Business Licensing Order

The State Department for East African Community Affairs has moved to reassure Kenyan nationals operating businesses in Tanzania that their activities remain unaffected by the recently gazetted Tanzanian Business Licensing (Prohibition of Business Activities to Non-Citizens) Order, 2025. The directive, issued on October 2, 2025, by Principal Secretary Caroline W. Karugu, seeks to address concerns among Kenyan entrepreneurs regarding potential restrictions on their operations in the neighbouring country.

“Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue running their businesses as usual,” the statement read. It further emphasised Kenya’s commitment to resolving bilateral issues through dialogue and mutual respect, aiming to enhance diplomatic relations between the two East African Community (EAC) member states.

Context of the Tanzanian Order

The Tanzanian Business Licensing (Prohibition of Business Activities to Non-Citizens) Order, 2025, has generated apprehension among foreign investors and business owners, including Kenyans, due to its potential implications for non-citizen participation in certain economic sectors. While the specific details of the prohibited business activities for non-citizens were not immediately available in the provided input, the Kenyan government's swift response indicates a proactive approach to safeguarding its citizens' economic interests within the EAC framework.

Legal and Policy Framework

The East African Community Treaty, to which both Kenya and Tanzania are signatories, promotes free movement of goods, services, labour, and capital among member states. This principle underpins regional economic integration and aims to foster a common market. Any national legislation perceived to contravene these regional agreements often triggers diplomatic engagement and clarification from respective governments. The Kenyan government's statement reinforces its commitment to these regional protocols and the protection of its citizens' rights within the EAC.

Stakeholder Engagement and Implications

The reassurance from Nairobi is crucial for thousands of Kenyans who have invested in various sectors in Tanzania, ranging from trade and manufacturing to services. Business associations and individual entrepreneurs had reportedly raised concerns following the gazettement of the Tanzanian order, prompting the Kenyan government's intervention. Analysts suggest that this development will likely influence public debate on regional trade policies and the implementation of EAC protocols. Stakeholders are now urging for greater clarity on the specific timelines, potential costs, and safeguards associated with such policy changes to ensure business continuity and investor confidence.

Evidence and Data

• Statement Date: October 2, 2025
• Issuing Authority: State Department for East African Community Affairs, Kenya
• Signatory: Caroline W. Karugu, Principal Secretary for East African Community Affairs
• Affected Legislation: Tanzania’s Business Licensing (Prohibition of Business Activities to Non-Citizens) Order, 2025

Risks and Implications

While Kenya's statement aims to calm anxieties, the underlying Tanzanian order could still pose risks if not clarified comprehensively. Ambiguity in such regulations can deter future investments and create uncertainty for existing businesses. Continued diplomatic engagement is essential to ensure that national policies align with regional integration objectives and do not inadvertently create trade barriers or disadvantage citizens of partner states.

Unknowns

The specific list of business activities prohibited for non-citizens under Tanzania’s Business Licensing (Prohibition of Business Activities to Non-Citizens) Order, 2025, remains unknown from the provided input. Further details on the scope and enforcement mechanisms of the Tanzanian order would provide greater clarity for affected businesses.

What to Watch

Observers will be keenly watching for further official communication from both the Kenyan and Tanzanian governments regarding the implementation and interpretation of the new licensing order. The nature and frequency of bilateral discussions between the two nations will be critical in ensuring a harmonious business environment within the EAC. Any amendments or clarifications to the Tanzanian order will also be of significant interest to the business community.

Related

This development is related to broader discussions on non-tariff barriers within the East African Community and efforts to harmonise trade and investment policies among member states. Previous instances of trade disputes or policy disagreements between Kenya and Tanzania have often been resolved through diplomatic channels, underscoring the importance of ongoing dialogue for regional stability and economic growth.