Kenyan leaders condemn Tanzania's business ban on foreigners

Tanzania President Samia Suluhu makes his speech during the Africa climate summit 2023 Day Two at KICC on September 05, 2023. [Stafford Ondego, Standard] A section of Kenyan leaders has criticised the Tanzanian government for banning foreign nationals, including Kenyans, from operating in certain business sectors. The directive, issued by Tanzania's Minister for Industry and Trade, Selemani Jafo, has since sparked widespread debate online, drawing sharp reactions from Kenyan citizens and leaders alike. Murang'a Senator Joe Nyutu, speaking during an interview on a local TV station, questioned the state of diplomatic ties between the two nations. "The hostility by Tanzania towards foreigners is directed at Kenyans, because we do not see Tanzanians treat other nationals from other countries the way they treat Kenyans. And it is not only during the reign of President Suluhu, remember the Magufuli incident involving Kenyan cattle," said Nyutu. Kenya Coast Tourism Association Chairman Victor Shitakha also condemned the move, warning it would further strain bilateral relations. "This kind of decision will only alienate the countries," he said. Dr. Sam Ikwaye, Executive Officer of the Kenya Association of Hotelkeepers and Caterers, urged Tanzania to embrace regional integration, saying no country can thrive in isolation. The Tanzanian directive, dated July 28, bars non-citizens from engaging in fifteen (15) categories of small- and medium-sized businesses (SMEs) in a bid to protect local enterprises. "The business activities specified in the schedule to this order shall not be carried out by non-citizens,'' read a part of the notice dated. It further states, "Upon coming into effect, licensing authorities shall not issue or renew a license for a non-citizen to carry out any of the business activities prohibited under this order." Violators of the directive face penalties of up to TSh10 million (approximately Sh503,000) or six months in prison. Tanzanian citizens found aiding foreigners risk three months in jail or a Tsh5 million (Sh251,000) fine. However, foreigners already holding valid licenses in the affected sectors will be allowed to operate until the licenses expire. Banned sectors include mobile money services, electronics repair, cleaning services, salon operations, small-scale mining, postal and tour guiding services, courier operations, and ownership of radio or TV stations. Others are real estate brokering, clearing and forwarding, crop purchasing, gambling outside casinos, micro and small-scale industries, running museums or curio shops, and business brokering. Online, Kenyans voiced strong criticism of Tanzania's protectionist stance, arguing it undermines regional cooperation. "Tanzania's decision to block foreigners from small businesses like retail, salons, mobile money, and phone repairs is a shortsighted move dressed up as economic protectionism. It stifles regional integration, limits competition, and risks escalating tensions with neighbors like Kenya," wrote Onyiego Andrew, a scholar and writer. "Tanzania claims this protects local jobs, but it reeks of populist gatekeeping that could isolate its economy and discourage foreign investment," he added. Others called for a reciprocal response from Nairobi. "All we need is sound policy, economic patriotism, and political spine to prioritise Kenyans in retail, trade, and low-capital sectors. Create the right laws, fix the business environment, and jobs will follow," wrote social media user Njeri Tirop. "No need to oppose. Iron sharpens iron. Let Kenya do the same and see how this unfolds," wrote Kibet. Another user, @BreakTheKnown, noted: This move could reshape East African business ties. Balancing protectionism and integration is tricky."

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