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President Samia Suluhu Hassan’s stark admission signals potential economic headwinds for a key Kenyan trade partner, raising concerns over regional stability and the future of East African Community projects.

Tanzanian President Samia Suluhu Hassan issued a grave warning on Tuesday, November 18, 2025, stating that the country's global image has been “stained” by deadly violence following the disputed October 29 general election, potentially jeopardizing crucial funding from international partners. Addressing her newly sworn-in cabinet at Chamwino State House in Dodoma, the president acknowledged the unrest had weakened Tanzania's credibility with lenders.
“We mostly rely on international funding, but what happened here may reduce our access to loans compared to how we were accessing funds during our first term,” President Suluhu stated, urging her new ministers to find domestic sources for development projects. Her remarks are the government's most direct acknowledgment of the severe diplomatic and economic fallout from the political crisis that has engulfed the nation.
The crisis erupted following the general election on Wednesday, October 29, 2025, which saw President Suluhu re-elected with over 97% of the vote. The election was preceded by a government crackdown on the opposition, with key figures from the main opposition parties, Chadema and ACT-Wazalendo, being disqualified, jailed, or barred from participating. This led to widespread protests in major cities including Dar es Salaam, Mwanza, and Arusha.
Security forces responded with lethal force, including live ammunition and tear gas, to disperse demonstrators. The government also imposed an internet shutdown and curfews. While official casualty figures have not been released, opposition parties and human rights groups claim hundreds, possibly thousands, were killed in the clashes. The United Nations Human Rights Office has stated it believes hundreds were killed and has received disturbing reports of security forces removing bodies to conceal evidence. Hundreds of people, including opposition leaders, were arrested and many have been charged with treason.
President Suluhu’s warning about a potential squeeze on foreign aid has significant implications for Kenya and the wider East African region. Tanzania is a vital trading partner for Kenya and a cornerstone of the East African Community (EAC), whose headquarters are in Arusha. Political and economic instability in Tanzania threatens to disrupt this relationship.
In 2024, Kenyan exports to Tanzania were valued at KSh 67.2 billion. The Kenya Association of Manufacturers (KAM) has already warned that the chaos is preventing Kenyan businesses from accessing the Tanzanian market, particularly through key border points like Namanga. Prolonged instability could disrupt regional supply chains, increase transport costs, and dampen investor confidence across the entire EAC bloc.
The crisis also tests the foundations of EAC integration. The bloc’s ambitions for a common market and eventual political federation depend on the stability of its member states. An economically weakened Tanzania, potentially isolated from key development partners like the World Bank and IMF, could slow down joint infrastructure projects and undermine regional cooperation on security and trade. International observers, including the African Union and the Southern African Development Community (SADC), have already stated that the election did not meet democratic standards, further isolating the administration.
In her address, President Suluhu instructed her new cabinet, which includes her daughter as a deputy minister, to aggressively pursue domestic revenue to fill any potential funding gaps. “We have to look for funds internally using our God-given resources,” she declared, signaling a major policy shift for an economy that has long relied on concessional loans and grants to finance its budget. In the 2025/26 fiscal year, the government had planned for significant external borrowing.
As Tanzania navigates its most severe political crisis in decades, its neighbours, particularly Kenya, will be watching closely. The path President Suluhu chooses to address the deep political divisions and restore international confidence will have lasting consequences not only for Tanzania's 67 million people but for the economic and political stability of all of East Africa.