Kenya says Tanzania has agreed to exclude Kenyans from a ban on ownership of small businesses by foreigners, potentially averting tensions between them.

 

The decision was reportedly reached on Wednesday night after officials from Kenya and Tanzania met in Dar es Salaam to discuss trade barriers.

Caroline Karugu, Kenya’s Principal Secretary for East African Community Affairs said they had reached “an understanding” that Kenyans with valid licences to run businesses be let off the ban.“The United Republic of Tanzania reported that, so far, no Kenyan business has been affected by the order and further reassured that no Kenyan business will be affected even in future,” Dr Karugu said in a statement.“Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue to run their businesses without fear of interference.”

Dar did not, at the time, specify whether East African Community nationals were exempt and Kenya protested the policy, saying it went against the bloc’s protocols on free movement of people, goods and services.

Tanzania, though, said foreigners with valid licences will continue to run businesses until the permits expire, suggesting the crackdown could actually begin at the start of next licensing rounds.

Non-tariff barrier removalThe decisions came as Kenya and Tanzania also discussed removal non-tariff barriers (NTBs), seeking to ease trade between the two countries under the East African Community.

On Wednesday, the officials said four more barriers had been removed. They are part of the 14 discussed on October 1, 2025, during the Ninth Meeting of the Joint Trade Committee between the two countries. The remaining 10 barriers are expected to be resolved by March 31, 2026, a joint official statement said.

Dr Hashil Abdallah, Tanzania’s Permanent Secretary for Industry and Trade said after hosting Dr Karugu in Dar es Salaam on Wednesday that the two sides signed a memorandum of understanding seeking to strengthen their business relationship.

It means both sides have removed the barrier on seed transportation, the road toll fee of $10 per 100 kilometre, and the Comesa insurance issue related to Tanzania.

Kenya also committed to allow in Tanzanian beer after both sides agreed to eliminate stamp duty on locally produced exports. Tanzania also agreed to remove levies and restrictions on Kenyan livestock exports to Tanzania. Officials said the removals will take effect immediately.

Speaking after the agreement was reached, Dr Abdallah emphasised that trade between Tanzania and Kenya will be conducted fairly and in accordance with East African Community protocols.

To facilitate this, a Joint Technical Committee (JTC) has been established to oversee the implementation of the changes.“Our goal is to ensure that no trader faces unnecessary bureaucracy. Tanzania must be seen as a safe, reliable, and business-friendly destination. We want the entire East African Community to be viewed as a secure region for conducting business,” he said.

Dr Abdallah noted that review meetings will be held regularly to ensure that each sector and ministry fulfills its responsibilities within the set timelines.

Dr Karugudescribed the progress as significant, highlighting a 78 percent resolution rate. “This is a sign of strong commitment from both governments,” Karugu said.

She attributed the success to agreements made during the official visit of Kenyan President William Ruto to Tanzania on October 9–10, 2022.“Today, we can be proud that we have begun resolving long-standing issues and finding solutions. This benefits not only Tanzania and Kenya but also the prosperity of the entire East African Community,” she added.

Regina Ombam, Kenya’s Principal Secretary for Trade at Kenya’s Ministry of Investments, Trade, and Industry, said the agreements mark a crucial step in transforming regional trade.“Trade between Kenya and Tanzania is vital to the welfare of our people. Any challenges faced by either country affect the whole of East Africa. By removing barriers and simplifying systems, we are creating a better environment for our traders and the region,” she said.

She also urged citizens on both sides to prepare for digital business and new opportunities in the global economy.“These agreements demonstrate our commitment to improving trade and positioning East Africa to compete globally,” she said.

On October 10, 2025, Presidents Samia Suluhu Hassan of Tanzania and William Ruto of Kenya directed their investment ministers to ensure the removal of all 14 trade barriers between the two countries.

President Samia had previously addressed the issue on October 10, 2022, at the State House in Dar es Salaam, during discussions aimed at finding swift solutions for mutual benefit.

The ministers identified 68 barriers, resolved 54, and now we have directed them to meet and work on the remaining ones to ensure free trade,” President Samia said then.

She added that President Ruto’s visit provided an opportunity to evaluate collaboration at all levels.“Tanzania and Kenya should not share poverty and humiliation, but rather the wealth we will generate through trade,” she said.

For his part, President Ruto affirmed his government’s commitment to continued collaboration with Tanzania, noting that the removal of these barriers has benefited Tanzania more than Kenya.

Additional reporting The Citizen. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).