Kenyan entrepreneurs in Tanzania have received a reprieve after the Tanzanian government exempted them from a ban on 15 business activities reserved for locals.

In a statement on Friday, October 3, the State Department of the East African Community confirmed that the exemption followed talks between Nairobi and Dodoma.

The agreement means Kenyans running small and medium enterprises such as mobile money services, mobile phones, and electronics repair will not be affected by the restrictions.

The broader ban targeted activities like running salons (outside hotels or tourism settings), cleaning services for homes and offices, postal and courier deliveries, tour guiding, operating radio and TV stations, managing museums and curio shops, business and real estate brokerage, as well as clearing and forwarding services.

“We are pleased to report that through constructive dialogue in the just-concluded bilateral consultation, the two Governments reached an understanding. The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured that no Kenyan business will be affected even in the future,” the statement read.

“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.”

The directive, issued in July by Tanzania’s Industry and Trade Minister Selemani Saidi Jafo, also prohibited foreigners from engaging in farming, crop purchasing, owning or operating gambling machines outside casinos, as well as running micro and small-scale industries.

Any foreigner found violating the rules risked a fine of up to Tsh10 million (Ksh502,927) and a jail term of up to six months. Tanzanians who assisted foreigners in such ventures faced a three-month prison sentence and a Tsh5 million (Ksh251,463) fine.

Jafo, however, clarified that foreigners with valid licences for the restricted businesses would be allowed to continue operations until their permits lapsed.

The restrictions drew backlash from Kenyans living in Tanzania, who criticized President Samia Suluhu’s administration for imposing the ban abruptly, warning it could trigger huge revenue losses, job cuts, and disrupt commercial activity.

The move also came amid simmering tensions between Nairobi and Dodoma, further straining ties between the two nations.

In early May, the Bank of Tanzania (BoT) prohibited the use of foreign currencies in domestic transactions, mandating that all goods and services be priced and paid for exclusively in Tanzanian Shillings (TZS), a move that also targeted the Kenyan shilling.