Kenya and the East African Community task Tanzania over the breach of Common Market Protocol

The Government of Kenya and the East African Community Secretariat have both tasked Tanzania for what it seems to be the country’s breach of the regional Common Market Protocol.

“The East African Community wishes to address recent developments regarding restrictions on the freedoms and rights under the EAC Common Market Protocol,” reads an official statement from the Secretariat in Arusha.

“Since the adoption of the EAC Common Market Protocol, Partner States have committed to fostering regional integration by removing barriers to trade, services, and investment, and to refrain from introducing unilateral measures that hinder the free movement and establishment rights of citizens and businesses across the region,” stated the Secretary General, Veronica Nduva.

According to the EAC Secretary General, the Protocol explicitly emphasizes that Partner States shall not reverse or restrict sectors and trades they have previously liberalized, as outlined in Annex V of the EAC Common Market Schedule of Commitment on the progressive liberalization of Services.

“It is important to remind all Partner States that unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol. This was reaffirmed by the Attorneys General through the Sectoral Council on Legal and Judicial Matters in November 2024,” says the EAC statement.

The EAC release added that all Partner States are encouraged to adhere to the obligations they have committed to in order to maintain the integrity of our regional single market.

On the other hand, the EAC Secretariat is currently undertaking an analysis of the extent of compliance to obligations and will present any identified inconsistent measures by Partner States at the upcoming meeting of the Sectoral Council on Trade, Industry, Finance and Investment.

As from the statement, the EAC remains committed to fostering a seamless regional integration process and calls on all Partner States to uphold the principles enshrined in the establishing Treaty and Common Market Protocol.

The EAC statement comes a day after Tanzania banned foreigners from engaging in at least 15 types of businesses amid concern that non-citizens are driving locals out of business and exacerbating the unemployment problem.

The Business Licensing (Prohibition of Business Activities for Non-Citizens Order) 2025 was issued to this effect by Industry and Trade Minister Selemani Jafo.

Some of the businesses listed as prohibited for foreigners include wholesale and retail, excluding supermarkets and specialized products outlets, small-scale mining, mobile money transfers, and ownership of radio and television broadcast stations.

The prohibition comes amid complaints from some Tanzanians that foreigners, including Chinese nationals, are doing businesses meant for locals, such as retail sale of goods at the Kariakoo market in commercial hub Dar es Salaam.

Kenya has also expressed concern over the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 issued by Tanzania, warning that the directive risks undermining regional economic integration efforts under the East African Community.

The Order restricts non-citizens from engaging in 15 categories of business activities in Tanzania. It prescribes penalties including fines of no less than 10 million Tanzanian shillings, imprisonment of up to six months, and revocation of visas and residence permits.

It further directs licensing authorities not to issue or renew licenses for non-citizens in the affected sectors.

Dr Caroline Karugu, the Principal Secretary of State Department for East African Community says Kenya has noted that the Order is inconsistent with key provisions of the EAC Common Market Protocol, particularly Articles 13(1), 13(3)a, 13(5), 13(8) and 13(9), which guarantee the free movement of persons, services, and the right of establishment for citizens of partner states.

“The Order undermines the core objectives of regional economic integration and poses a significant setback to the gains made under the East African Community Common Market Protocol,” she said.

“I have officially written to the EAC Secretariat to notify the United Republic of Tanzania to review the Order to ensure full compliance with the EAC Treaty and Community Laws,” added Dr Karugu.