‘Not welcome to Tanzania’ as new order locks out Kenyan firms

‘Not welcome to Tanzania’ as new order locks out Kenyan firms

NAIROBI, Kenya, July 29 – Kenyan companies are dealing with recent boundaries in Tanzania following the introduction of a brand new directive that restricts international companies from working in choose sectors of the financial system.

Tanzania’s Government Notice No. 487A prohibits non-citizens, together with Kenyan nationals and firms, from partaking in a spread of enterprise actions. These embody retail and wholesale commerce (excluding supermarkets and specialised product retailers), cell cash switch companies, tour guiding, clearing and forwarding, brokerage, company work, and playing.

The order is anticipated to affect a variety of Kenyan enterprises and people working in Tanzania, notably these within the tourism, logistics, and communication sectors. Tour firms providing safaris within the Serengeti and Mount Kilimanjaro, in addition to PR companies and different service-based companies, are amongst these prone to be affected.

The transfer comes amid cooling commerce ties between the 2 neighbours. Kenya’s exports to Tanzania declined to Sh51.84 billion in 2024, down from Sh55.96 billion throughout an identical interval final yr.

Under the brand new guidelines, foreigners discovered working within the prohibited sectors threat fines of a minimum of TSh10 million (approx. Sh500,000) or as much as six months in jail. Tanzanians discovered aiding foreigners in violation of the legislation might withstand three months in jail or comparable penalties.

The order is seen as a part of Tanzania’s broader technique to localize financial alternatives, however it has sparked recent considerations over protectionism and its affect on regional integration throughout the East African Community.

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