Tanzania's Small Business Ownership Ban Stirs Controversy in Kenya

In an effort to protect local enterprises, Tanzania has enacted a ban prohibiting foreign nationals from owning small-scale businesses across 15 sectors, including mobile money, tour guiding, and beauty services. Trade Minister Selemani Jafo stated the directive aims to safeguard Tanzanian livelihoods in the face of increasing foreign involvement, particularly from Chinese traders. While the ban was generally welcomed in Tanzania, concerns are rising in Kenya about its compliance with East African Community (EAC) agreements allowing free movement and trade. Kenyan officials warn of potential reciprocal actions, emphasizing the economic ties that bind the two nations. The policy has reignited discussions on regional cooperation and economic protectionism, especially as political tensions simmer ahead of Tanzania's upcoming elections.

The trade minister's announcement on Monday has incited anger among Kenyan officials and business owners, who argue that the ban undermines long-standing EAC principles of free trade. Critics in Kenya view this move as counterproductive and fear it could harm regional relations. With a significant number of Kenyans living and working in Tanzania, including many in mining sectors, calls for dialogue and transparency are growing. The situation raises pressing questions about the future of EAC cooperation amidst shifting economic policies and potential retaliatory measures.