Kenyans Face KSh 495k Fine, Jail Term if Found Guilty of Operating 15 Businesses in Tanzania

• Tanzania's Minister for Trade, Selemani Saidi Jafo, announced new regulations governing business in the East African country
• The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, banned non-locals from operating certain businesses
• Jafo reaffirmed that licensing authorities are not allowed to grant or extend a licence to a non-citizen to engage in any of the specified commercial activities

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Kenyans found operating 15 specified businesses in Tanzania will be fined or jailed under the East African country's Business Licensing Act (Cap. 101).

Tanzanian President Samia Suluhu's administration published the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, on Monday, July 28.

Geopolitical economist Aly-Khan Satchu opined that Kenya and other countries could retaliate, hampering the African Continental Free Trade Area (AfCFTA).

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"Many countries seek to firewall certain SMEs from foreign competition. It’s not in sync with the East Africa and the AfCFTA free trade agreements, and as such, it is a negative development. Furthermore, we could see retaliation," Satchu told TUKO.co.ke.

How much is the Tanzanian fine?

The Tanzanian government noted that non-citizens will be fined TSh 10 million (KSh 494,888.69 at the current exchange rate) if they are found guilty of flouting the act.

At the same time, Dodoma warned that operating businesses meant for locals could attract a jail term not exceeding six months.

"If found guilty, a non-citizen who engages in any of the commercial activities listed in the schedule to this order faces a minimum fine of ten million shillings, a maximum sentence of six months in jail, and the cancellation of their visa and residence permit," the Minister for Trade Selemani Saidi Jafo stated.

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If a Tanzanian citizen is found guilty of helping a non-citizen engage in any of the commercial activities forbidden by the order, they could face a fine of up to TSh 5 million (KSh 247,444.34) or potentially three months in jail.

Which businesses are prohibited for non-citizens in Tanzania?

The businesses that Suluhu's government has reserved for Tanzanian citizens include wholesale and retail, except supermarkets and specialised product outlets.

Jafo reaffirmed that licensing authorities are not allowed to grant or extend a licence to a non-citizen to engage in any of the commercial activities specified in the directive.

Below are the businesses banned for non-Tanzanians:

1. The retail and wholesale sales of goods, excluding supermarkets, speciality stores, and wholesale hubs for regional manufacturers.
2. Mobile money transfers.
3. Fixing technological gadgets and cell phones.
4. Salon operations, unless they are carried out for tourism purposes or in a hotel.
5. Home offices and environmental cleanliness
6. Mining on a small scale.
7. Postal operations and package delivery around the nation.
8. Providing domestic tour guidance.
9. Radio and television establishments and operations.
10. Running cultural stores or museums.
11. Clearing and forwarding services.
12. Agencies or brokerages in real estate and business.
13. Buying crops on the farm.
14. Possession or use of gaming machines or equipment, excluding those found on casino premises.
15. Ownership and management of small and micro-enterprises.

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How did Kenyans react?

Many Kenyans were drawn to the Tanzanian Industry and Trade Minister Jafo's directive, and their responses were diverse.

Jafo said the directive was issued in response to Tanzanians' worries that certain foreigners were forcing them out of business and raising the nation's unemployment rate.

Kenyans on social media criticised the Tanzanian government for the action.

Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.

Source: TUKO.co.ke