A controversial new Tanzanian law barring foreigners from operating small businesses has triggered fierce backlash from Kenyan traders, escalating tensions between the two East African neighbors.
The policy, enacted last week, restricts non-citizens from running ventures like retail shops, salons, and roadside kiosks—a move Tanzanian officials say protects local entrepreneurs. But thousands of Kenyans operating in Tanzania now face closures, sparking protests and diplomatic friction.
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Why is Tanzania Enforcing the Ban?
President Samia Suluhu Hassan’s administration argues the law will curb foreign dominance in low-capital sectors and boost employment for Tanzanians. Similar restrictions exist in Nigeria, Ghana, and South Africa, but enforcement in Tanzania has been abrupt, leaving little transition time for affected businesses.
“Local traders are being squeezed out by foreigners with deeper pockets,” said a Tanzanian trade official who requested anonymity. “This levels the playing field.”
Kenyans React: “Our Livelihoods Are at Stake”
Across Kenya’s border towns, anger is rising. The Kenya National Chamber of Commerce (KNCC) estimates over 30,000 Kenyan-owned small businesses in Tanzania could collapse.
“We’ve traded in Dar es Salaam for years—now we’re told to leave overnight?” fumed Miriam Ochieng, a Nairobi-based cosmetics trader with two shops in Tanzania. “This is economic sabotage.”
The Kenyan government has vowed to engage Tanzania diplomatically, but traders demand urgent intervention.
Will This Strain East African Unity?
The ban tests the East African Community (EAC)’s pledge of free movement and labor. Analysts warn retaliatory measures could follow if talks fail.
As tensions simmer, the fallout threatens not just individual livelihoods but regional trade stability.
Updates to come as governments negotiate.
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