Businesses in Kenya have received major relief after Tanzania agreed to spare them from the recent ban on foreign-owned small enterprises, easing fears of market disruption and signaling a new phase of regional cooperation.
The breakthrough deal, reached in Dar es Salaam, ensures that Kenyan ICT firms and other entrepreneurs with valid licenses will not be affected by the restrictions that had targeted 15 categories of business, including mobile money kiosks, phone repairs, and tour guiding.
Caroline Karugu, Kenya’s Principal Secretary for East African Community Affairs, confirmed the exemption, saying both countries had reached “an understanding” to protect Kenyan businesses.
“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,” she said.
“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.”
The two nations also announced a raft of new agreements to ease trade barriers. Out of 14 non-tariff barriers under discussion, four have been removed immediately.
These include eliminating restrictions on the transportation of seeds, scrapping a road toll fee of 10 dollars per 100 kilometers, resolving the COMESA insurance dispute, and allowing Tanzanian beer into Kenya following an agreement to remove stamp duty on locally produced exports.
Tanzania also pledged to lift levies and restrictions on Kenyan livestock exports. The remaining 10 trade barriers are expected to be addressed by March 2026.
Hashil Abdallah, Tanzania’s Permanent Secretary for Industry and Trade, said a memorandum of understanding had been signed to cement the reforms.
“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 emphasized.
Karugu welcomed the developments as a 78% resolution rate, reflecting “strong commitment from both governments.” Kenya’s Principal Secretary for Trade, Regina Ombam, added that the agreements mark “a crucial step in transforming regional trade,” urging citizens to embrace digital business and global opportunities.
