Kenyan Traders in Tanzania Confronting an Uncertain Future

The new rule that may force hundreds of Kenyan companies to close.

Tanzanian traders from Kenya have a difficult future ahead of them. A new rule that prohibits foreigners from working in 15 small business areas was introduced by the Tanzanian government. For many Kenyans who have established their lives and companies in Kenya, this has led to a great deal of uncertainty.

The new regulations aim to prioritize Tanzanian natives in specific industries and safeguard local jobs.

What Is Off Limits to Foreigners?

Numerous everyday vocations and businesses are impacted by the new directive. Although it’s a lengthy list, some of the more important areas are:

Retail and Wholesale: Small businesses can no longer be operated by foreigners. Large supermarkets are the only exception.

Popular services like parcel delivery and mobile money are now only available to Tanzanians.

Real estate: If you are not a citizen of Tanzania, you are not permitted to work as a real estate agent.

Personal services include tour guiding and housekeeping.

In all of these fields, Kenyans have historically achieved success. Additionally prohibited are activities such as operating gaming machines, purchasing crops directly from farmers, and owning radio and television stations. Kenyans have historically prospered in all of these places, particularly in border towns.

“The ban affects everything from small shops to mobile money services, making it a huge challenge for Kenyan entrepreneurs.”

Now What?

Foreign nationals who currently hold a license in one of these fields are permitted to continue working until the expiration of their permit. You will not be able to renew it, though.

A punishment of up to KSh495,000 or even six months in jail could be imposed on anyone who violates the regulations. Tanzanians may potentially be punished for assisting foreigners in circumventing the new law.

Regional Trade Faces a Setback

Many people view this as a step backward for the East African Community (EAC), despite the Tanzanian government’s claims that it is not intended to deter foreign investment. Facilitating cross-border trade and employment is the main goal of the EAC. It appears that this new law contradicts such notion.

For business owners in Kenya, this might serve as a warning. They might have to shut down their operations in Tanzania or search for new prospects in nations with more benevolent regulations, like Rwanda or Uganda.