The East African Community (EAC) is at the center of a deepening crisis as Tanzania’s recent directive banning non-citizens from operating in 15 key business sectors has sparked a fierce backlash from member states, particularly Kenya. The EAC Secretariat has issued a stern warning, asserting that Tanzania’s move flagrantly violates the foundational principles of the EAC Common Market Protocol, which guarantees the free movement of goods, services, labor, and capital across the region.
Effective July 28, 2025, Tanzania’s “Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025,” signed by Minister for Industry and Trade Selemani Saidi Jafo, aims to reserve specific business activities for its citizens. The restricted sectors include small-scale retail, mobile money transfers, phone and electronics repair, salon services, tour guiding, and various cleaning services, among others. Violators face hefty fines of up to Tsh10 million (approximately Ksh502,927), imprisonment for up to six months, and potential revocation of visas and residence permits.
Kenya has formally objected the directive, with Principal Secretary for East Africa Community Affairs, Caroline Karugu, stating that the order “undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the EAC Common Market Protocol”. Karugu specifically cited violations of Articles 13(1), 13(3)(a), 13(5), 13(8), and 13(9) of the Protocol, which pertain to the free movement of persons, services, and the right of establishment.
The EAC Secretary General, Veronica Nduva, emphasized that “unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol,” a stance reaffirmed by the Attorneys General in November 2024. This protectionist measure, while defended by Tanzania as a means to empower local enterprises, is widely seen as a direct challenge to the spirit of regional cooperation and could trigger retaliatory actions from other EAC members.
Bernard Shinali, Chairman of Kenya’s National Assembly Trade Committee, stated, “It is clear that Tanzanians have gone too far, and we should just cut links with them”. A sentiment that underscores the growing tension and the potential for a full-blown trade dispute that could destabilize the region’s economic integration efforts.
The EAC Secretariat has launched a compliance review, with findings to be presented at an upcoming Sectoral Council meeting on Trade, Industry, Finance, and Investment, as the future of East African unity hangs in the balance.
