Tanzanian Government Exempts Kenyans From Sweeping Small Business Ban.

In a sudden twist to recently imposed restrictions in Tanzania, Kenyan small business operators have reportedly been spared from the sweeping ban on foreign-owned micro and small enterprises — a move that both relieved and confounded traders caught in the crossfire of regional protectionist policy.

The Tanzanian Order, published last week under Government Notice No. 487A, barred non-citizens from engaging in 15 business sectors dominated by small-scale commerce, including salons, mobile money services, retail (non-specialised), and cleaning services. Violators faced stiff penalties including large fines, visa revocations, or imprisonment.

Yet, according to statements emerging over the weekend, Kenyans who already own or operate such businesses in Tanzania will not be forced to shut down immediately. Licenses held by non-citizens will remain valid until expiry, suggesting that Kenyan entrepreneurs who had invested under prior licensing may continue operations temporarily, despite new rules that block license renewal or the issuance of new ones to non-citizens.

Relief Mixed with Uncertainty

While the exemption provides short-term relief, there is widespread concern among Kenyan traders in Tanzania, particularly in cities like Dar es Salaam, Arusha, and Mwanza. Many have expressed anxiety over what happens after existing permits lapse. Will they be able to renew, relocate business, or will they be cut off abruptly?

Trade experts cautioned that while the policy, in theory, gives grace to existing business holders, it embeds uncertainty: non-renewal means eventual exit; new entrepreneurs are fully barred. For Kenyan business owners counting on long-term investment and cross-border trade, the policy signals risk.

Kenya Pushes Back Officially

Kenyan authorities have formally raised concerns with the East African Community (EAC), arguing that Tanzania’s directive violates core regional integration protocols. Claims are that the order undermines EAC principles of free trade, movement, and rights of citizens across borders.

Trade Secretary Lee Kinyanjui described the ban as discriminatory, warning of economic fallout for thousands of Kenyans whose livelihood depends on operating within Tanzania. Meanwhile, some Kenyan lawmakers are pushing for retaliatory or protective policies to safeguard cross-border entrepreneurs.