Tanzania’s Business Ban on Foreigners Triggers Kenyans’ Outrage

Tanzania's recent ban on foreign nationals operating small-scale businesses has raised significant concerns and sparked backlash within neighboring Kenya, highlighting regional tensions and economic implications.

Tanzania's Trade Minister Selemani Jafo announced a directive prohibiting foreign nationals from owning or operating small businesses across 15 sectors, including mobile money transfers, tour guiding, and beauty salons. This initiative has been largely welcomed in Tanzania, where there is rising concern about foreign encroachment, particularly from Chinese nationals, into local markets.

Local traders, like Severine Mushi from the Kariakoo traders' association, expressed approval, emphasizing that the decision protects local livelihoods. Penalties for violators include hefty fines, potential jail time, and revocation of visas and work permits. Jafo hopes that the new restrictions will redirect foreign investment into larger business operations instead.

However, the directive has provoked a strong reaction in Kenya, where there are claims that it contravenes East African Community (EAC) agreements promoting free movement of citizens and trade among member nations. Kenyan National Assembly Trade Committee chairman Bernard Shinali warned such policies might lead to retaliatory measures against Tanzanian businesses in Kenya, recalling that many Tanzanians work in the Kenyan mining industry.

Veteran Kenyan hotelier Mohammed Hersi criticized Tanzania's protectionist approach, suggesting it could hinder overall economic growth. Kenyans have taken to social media to voice their objections, arguing that the policy poses a challenge to regional integration, especially given that many Tanzanians operate small businesses in Kenya without restriction.

Previous political and economic tensions have marked Tanzania-Kenya relations, with Tanzania facing criticism for protective tariffs and import bans. Kenyan Foreign Affairs Minister Musalia Mudavadi recently highlighted the presence of 250,000 Kenyans in Tanzania, reiterating the importance of maintaining amicable relations amid escalating diplomatic issues, including allegations against Tanzanian authorities of mistreatment of Kenyans.

With Tanzanian general elections approaching in October, these developments may impact the ruling CCM party's stance and regional dynamics.