Kenya protests Tanzania's new trade restrictions

Kenya also took issue with Tanzania’s newly gazetted Business Licensing Order.

The Government of Kenya has raised concerns over new trade restrictions imposed by Tanzania, warning that the measures threaten regional economic integration under the East African Community (EAC) framework.

According to the Ministry of Investments, Trade, and Industry, the EAC remains Kenya’s largest export destination, accounting for 28.1 percent of total exports valued at Sh297 billion in 2024.

"Tanzania ranks as Kenya’s second-largest trading partner in the bloc, with goods worth Sh63 billion exchanged last year," Trade Cabinet Secretary Lee Kinyanjui stated.

The CS added that the recently enacted Tanzania Finance Act, 2025, and amendments to the Excise (Management and Tariff) Act of 2019 have introduced new excise duties and an Industrial Development Levy of 10 percent and 15 percent, respectively, posing significant barriers to intra-EAC trade.

Kinyanjui also took issue with Tanzania’s newly gazetted Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which bars non-Tanzanian citizens from engaging in 15 service sectors.

These include ownership and operation of micro and small industries. While the order exempts current license holders, it takes immediate effect and imposes stiff penalties on violators.

"Kenya acknowledges Tanzania’s sovereign right to legislate on domestic economic matters, but such decisions must align with the Common Market Protocol (CMP) of the EAC, which guarantees non-discriminatory treatment of partner state nationals," he added.

According to Kinyanjui, these measures are not only unilateral but also undermine the commitments made under the CMP, particularly Article 13, which grants EAC citizens the right to establish and operate businesses across member states.

Kenya has called for the immediate withdrawal of the restrictions and urged Tanzania to adhere to the agreed provisions of the EAC protocols.

The government warns that the licensing order risks criminalizing legitimate regional investment and damaging both economies.