After the city of Dodoma exempted them from a directive which aimed at revoking and denying business licenses to non-residents operating small businesses, Kenyan traders in Tanzania are definitely letting out a big sigh of relief.
On Friday, the two countries confirmed that they had reached a bilateral agreement to resolve the trade standoff. Besides, the deal ensures that Kenyan nationals will continue running businesses in Tanzania without restrictions, said East African Community (EAC) Affairs Principal Secretary Caroline Karugu.
In July, Tanzania prohibited foreigners from operating in 15 sectors that were considered critical for the country’s economy, according to a directive. The restrictions were targeting activities such as mobile money transfers, tour guiding, small-scale mining, on-farm crop buying, beauty salons, curio shops, and establishing radio and TV operations. Those who did not comply with the requirements were paid a fine of up to KSh 500,000 or were jailed for up to six months.
Kenya protested the order immediately, stating that it would affect the livelihoods of more than 250,000 Kenyans living, working, or doing business in Tanzania. Besides, Nairobi pointed out that the order was violating some provisions of the EAC Common Market Protocol, which allows free movement of persons, services, and the right of establishment for citizens of partner states.
Tanzania has thus provided a guarantee that no order would affect Kenyan businesses as a result of the bilateral talks and has made a vow that there would be no interruptions in the future.
The Kenyan government is rallying its nationals who are operating in Tanzania to keep their eyes open and to consult the Kenyan High Commission in case of any trouble
