Kenya Urges Tanzania to Drop Trade Restrictions, Uphold Regional Commitments
The Government of Kenya has expressed deep concern over recent trade measures enacted by Tanzania, terming them a threat to regional integration and cross-border commerce within the East African Community (EAC).
Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, has issued a statement outlining Kenya’s objections to newly introduced Tanzanian tax policies and licensing restrictions targeting non-citizens.
He said the measures undermine gains made under the EAC Common Market Protocol, which guarantees equal treatment of citizens from partner states in trade and business.
Tanzania recently enacted the Finance Act 2025, as well as amendments to the Excise (Management and Tariff) Act 2019, introducing new levies including a 10 percent excise duty and a 15 percent Industrial Development Levy.
In addition, the government gazetted the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which restricts foreigners including EAC nationals from participating in 15 service sectors, including the ownership and operation of micro and small industries.
“These measures are substantive and contradict Article 13 of the EAC Common Market Protocol, which guarantees the right of EAC nationals to establish and operate businesses without discrimination,” stated Kinyanjui.
Tanzania is Kenya’s second-largest EAC trade partner, after Uganda, with trade volumes amounting to Ksh. 63 billion in 2024. Overall, the EAC accounts for 28.1 percent of Kenya’s global exports, valued at Ksh. 297 billion.
While affirming Kenya’s respect for Tanzania’s sovereignty, the Cabinet Secretary emphasized the need for policy coordination and consultation on issues impacting intra-regional trade.
The CS warned that the recent restrictions not only jeopardize economic integration but also risk harming investments, bilateral relations, employment, and job creation.
Kenya has initiated several engagements with Tanzania and other EAC partners to address the matter. Notably, the 1st Extra-ordinary Sectoral Council on Finance and Economic Affairs (SCFEA), which Kenya participated in, directed the EAC Secretariat to compile a list of trade measures that violate the Customs Union Protocol, due by 30 August 2025.
Technical and bilateral discussions are ongoing, with key meetings slated for August in Arusha and Nairobi, aimed at resolving outstanding issues around tobacco trade, levies, business ownership, and cross-border charges.
“We remain committed to the EAC vision of one people, one destiny.Kenya calls for the withdrawal of these discriminatory measures and a return to the spirit of regional cooperation, unity, equity, and non-discrimination.” said Kinyanjui.
By Sharon Atieno
