Tanzanian Government has issued a sweeping order that bars foreigners from operating in dozens of small and medium-sized businesses in a move likely to disrupt cross-border entrepreneurship and informal trade involving Kenyan nationals.

The directive, which was signed by Tanzania’s Minister for Industry and Trade Selemani Saidi Jafo and dated July 25, 2025, specifically bans non-citizens from engaging in sectors traditionally reserved for Tanzanians.

These sectors include retail and wholesale trade (excluding supermarkets and specialised outlets), mobile money services, electronics repairs, salon businesses, and cleaning services.

Also off-limits to foreigners are small-scale mining, parcel delivery, tour guiding, real estate and business brokerage, clearing and forwarding, micro-industry ownership, and operating radio or TV stations.

In short, foreign nationals will no longer be allowed to run most low-capital businesses within the borders of Tanzania.

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Effect on Kenyans

The order is set to affect Kenyan traders operating in Tanzania, mainly those in retail trade, mobile money transfer, courier services, salon and beauty work, and small-scale cross-border commerce.

Kenyans have long been active in these indicated sectors in Tanzanian towns like Arusha, Mwanza, and Dar es Salaam, either independently or through informal partnerships.

For many, Tanzania’s expanding market had become an attractive frontier with many Kenyans crossing the border at Namanga in search of greener pastures and lives.

But this new policy by the Samia Suluhu administration signals a firm shift towards economic nationalism, placing tighter controls on participation of foreign traders in grassroots commerce.

While large companies and formal investors may remain unaffected, individual Kenyan entrepreneurs and small business owners could face eviction or be forced to close shop.

In Short

Minister Jafo argues that the punitive restrictions are intended to “boost citizen participation” and prevent foreign competition in sectors where locals are already active.

“The sale of goods on a wholesale and retail basis… is now strictly reserved for Tanzanian citizens,” the controversial directive indicated.

Tanzania has not yet clarified whether foreign-owned businesses already operating in the restricted sectors will be accorded a transition period or asked to exit immediately.

Regional Trend

Tanzania is not alone in tightening the reins on foreign business involvement in low-capital sectors.

Uganda already requires foreigners to invest at least $250,000 to be allowed to register and run a business, effectively locking out informal and small-scale entrepreneurs, mainly Kenyans.

Rwanda enforces a “citizen reserved list” for businesses such as retail and local transport, with non-citizens found operating in these areas risking fines or closure.

For East African traders, these protectionist policies raise fresh questions about the limits of regional integration under the East African Community (EAC) framework, which promotes the free movement of people, goods, and services across member states.

Fine Print

Here is a snapshot of business activities now off-limits to foreigners in Tanzania:

• Retail and wholesale trading (excluding supermarkets and specialty stores)

• Mobile money and digital payments

• Phone and electronics repairs

• Hair salons and barbershops

• Residential and office cleaning services

• Small-scale mining

• Local parcel and courier services

• Tour guiding and curio shops

• Business and real estate brokerage

• Clearing and forwarding

• On-farm crop purchasing

• Slot machine operations outside casinos

• Operation of micro and small manufacturing units

• Running museums or media stations

What Next?

The directive poses a direct challenge to the informal business models that many cross-border Kenyan traders depend on.

Without clear guidelines on enforcement or grace periods, there is growing uncertainty among the thousands of Kenyans already operating in the urban centres across Tanzania.

Trade experts argue that the move could strain bilateral relations, especially if enforcement leads to sudden arrests or forced closures.

For now, Kenyan businesses considering expansion into Tanzania are advised to consult trade missions or legal experts and monitor official updates from Tanzania’s Ministry of Trade and the EAC Secretariat.

Swala Nyeti will continue to track this developing story and its implications for Kenya’s business community across the region.