Kenyan business owners operating in Tanzania will not face disruption under the recently announced Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, following clarifications secured through bilateral talks.

The announcement came after discussions between officials from Nairobi and Dodoma, who reached common ground on how the order would be applied.

“We are pleased to report that through constructive dialogue in the just concluded bilateral consultation between the Republic of Kenya and the United Republic of Tanzania, the two Governments reached an understanding,” Karugu stated.

According to Kenya’s Principal Secretary for East African Community Affairs, Caroline Karugu, Tanzania confirmed that no Kenyan-owned enterprise had been affected since the directive was issued and promised the situation would remain unchanged.

“The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured no Kenyan business will be affected even in future,” Karugu said.

She added that traders should maintain close contact with Kenya’s diplomatic mission for support whenever necessary.

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

The directive, made public through Government Notice No. 487A on July 28, 2025, was introduced after amendments to Tanzania’s Finance Act, 2025.

It restricts at least 15 activities exclusively to Tanzanian citizens. Among these are retail and wholesale trade, mobile money services, repair of electronics, beauty salons, parcel delivery, clearing and forwarding, tour guiding, real estate brokerage, and small-scale mining.

While the order prevents foreigners from securing new licences in those sectors, it also stops the renewal of existing permits once they lapse.

The measures triggered concerns among Kenyans doing cross-border business, who feared job losses and the closure of long-standing ventures.

Kenya had earlier raised the matter with Tanzanian authorities, warning that such restrictions could undermine East African Community (EAC) provisions guaranteeing free movement of labour and the right of establishment within the bloc.

With the assurances now in place, officials expect the matter to ease tensions among traders and allow commerce between the two countries to continue without disruption.