Kenya has officially asked the East African Community (EAC) to stop Tanzania from blocking foreigners from doing business in the country.
On Thursday, July 31, the Kenyan government said it had sent a formal letter to the EAC Secretariat, asking them to push Tanzania to cancel the new rule.
This comes after Tanzania introduced a ban that prevents non-citizens from doing 15 types of businesses. The penalty for breaking the rule includes big fines, jail time, or losing your visa and work permit.
Principal Secretary Karungu, who wrote the letter, said this move goes against EAC’s agreement, which allows free trade between citizens of member countries.
“I have written to the EAC Secretariat asking Tanzania to review this order so they can follow the EAC Treaty and Community Laws,” Karungu said in a statement.
He warned that Tanzania’s actions could hurt progress made through the East African Common Market, which was created to support free movement of goods and business across the region.
Kenya’s Trade CS Lee Kinyanjui also spoke out, saying the new ban could hurt both countries’ economies if it’s not stopped.
“This order is blocking legal EAC investments. Both our economies will suffer. We need to talk and fix this quickly,” he said.
On top of the business ban, Tanzania has also passed new tax rules — including a 10% excise duty and a 15% industrial levy on certain products — which could make it even harder for foreign business owners.
Kenya now wants the EAC to step in fast and help solve the growing business tension before it gets worse.
