Tanzania lifts ban on Kenyan businesses after talks

Kenyans running businesses in Tanzania can breathe a sigh of relief after the two nations reached an agreement reversing new restrictions placed by Tanzanian authorities in July.

According to East African Community Affairs Principal Secretary Caroline Karugu, Tanzania agreed to exempt Kenya-owned businesses from the ban following bilateral talks.

On July 28, the Tanzanian government issued a directive that prohibited non-citizens from operating small businesses earmarked for locals.

“Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue to run their businesses without fear of interference,” said PS Karugu.

Further, she said the two Governments reached an understanding to create an enabling environment for business to operate, urging the public to report any incidents of harassment.

“We further encourage Kenyan nationals running businesses in Tanzania to engage the Kenyan High Commission in the event of any distress and for information,” the PS stated.

While welcoming the move, the government also reaffirmed its commitment to resolving issues through dialogue and mutual respect and to continue enhancing diplomatic relations between the two nations.

“The government of Kenya welcomes and appreciates this assurance by the United Republic of Tanzania and the spirit of cooperation and integration demonstrated.”

Tanzania’s Minister for Industry and Trade, Selemani Jafo’s, ban on foreign nationals, including Kenyans, from operating in certain business sectors was followed by sharp criticism.

Some of the prohibited business activities for non-citizens included wholesale and retail sale of goods, excluding supermarkets, mobile money transfers, repair of phones and electronic devices, and salon businesses.

Additionally, Home, office, and environmental cleanliness services, small-scale mining, postal activities and parcel delivery within the country, tour guiding, publishing and operation of radio and television, kiosks or small shops, among other businesses were listed.

Non-citizen found operating any of the prohibited businesses risked fines not less than Sh495, 000 or six months in prison, in addition to possible revocation of their visa or residence permit.