Kenya Fights Back! Ruto Govt Demands Tanzania Scrap Harsh New Business Bans and Taxes Hurting Kenyans

Kenya and Tanzania are facing a serious disagreement over new rules that are making it harder for Kenyans to do business in Tanzania. Kenya has officially asked Tanzania to remove these new taxes and business restrictions, saying they are unfair and go against the East African spirit. 

Kenya’s Cabinet Secretary for Trade, Lee Kinyanjui, made a strong public statement on Wednesday. He said Tanzania’s actions are “discriminatory” and will harm both countries’ economies. Kenya wants Tanzania to follow the East African Community (EAC) agreements, which support free trade between member states. 

In his statement, CS Kinyanjui said, “Kenya requests that these restrictions be removed and that Tanzania reverts to measures provided for in the EAC protocol.” He added that Tanzania’s new Business Licensing Order is stopping legal business investments by Kenyans, which is not in line with EAC goals. 

Tanzania recently introduced a list of 15 business activities that foreigners, including Kenyans, can no longer take part in. These include tour guiding, parcel delivery, brokering real estate, and running museums, TV stations, and radio channels. 

This ban is part of Tanzania’s new laws, the Finance Act 2025 and changes to the Excise Management and Tariff Act. These laws also introduce new taxes: 10% excise duty and a 15% industrial development levy. These charges make it more expensive for Kenyans to do business in Tanzania. 

Kenya believes these changes are not just about business, they hurt the idea of regional unity and economic growth under the EAC Common Market Protocol. CS Kinyanjui said Tanzania’s move “undermines the core objective of regional economic integration.” 

Kenya’s Ministry of Investments, Trade and Industry (MITI) has been trying to fix the issue by talking to Tanzania through diplomatic and trade forums. Kenya wants the two countries to work together to solve this problem peacefully and quickly. 

However, the issue has already caused tension among small business owners, especially Kenyans trying to earn a living in Tanzania. Many of them now feel unwanted and unfairly treated. 

In Kenya, the response was strong. Politicians and citizens alike called for action. Nandi Senator Samson Cherargei said Kenya must fight back. “The Kenyan government must retaliate by also banning Tanzanian businesses in Kenya,” he said. 

He even went as far as calling for the removal of Tanzanian street beggars in Kenyan cities. His words have sparked intense debate online, with many Kenyans demanding the government take a firm stand. 

Some people worry that if both countries start banning each other’s businesses, it could lead to a trade war that would hurt ordinary people on both sides of the border. 

Others argue that Kenya should respond with similar restrictions to protect its own citizens and businesses. They feel Tanzania has crossed a line and should be made to feel the pressure. 

The affected businesses are not small. They include postal services, clearing and forwarding companies, and even those involved in tourism and media. These are key sectors that many Kenyans have invested in. 

Experts say the ban could lead to job losses, reduced income, and fewer cross-border investments. It also threatens the trust built through years of regional cooperation under the EAC. 

Kenya hopes for a quick solution. The government wants talks with Tanzania to help bring back fairness and free trade, as agreed in the EAC rules. 

Kenya believes that unity and partnership are the best way forward for East African countries. But that partnership must be based on respect and equal opportunity for all. 

For now, Kenyans wait to see how Tanzania will respond. Will they sit down for talks, or will the tension grow worse? 

As both nations prepare for high-level meetings, business owners, politicians, and citizens continue to express their hopes, and their fears. 

The next few weeks could determine the future of trade relations between Kenya and Tanzania. It could also shape how other EAC members behave in the future. 

Will East Africa come together as one market, or will countries go their separate ways? 

Only time will tell, but Kenya has made its message loud and clear: discrimination will not be tolerated.