Kenya faults Tanzania’s new tax, business rules
NAIROBI, Kenya, July 30 – The Kenyan government has raised alarm over fresh trade restrictions and tax measures introduced by Tanzania, warning that they risk undermining the East African Community (EAC) integration agenda.
Trade and Industry Cabinet Secretary Lee Kinyanjui criticised Tanzania’s new Finance Act 2025 and changes to the Excise (Management and Tariff) Act 2019, which introduce an Industrial Development Levy and additional excise duties of between 10% and 15% on imported goods.
He said the move makes Kenyan products less competitive in the Tanzanian market, with some items now costing up to 65% more.
More contentious is the new Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which bans foreigners — including EAC citizens — from engaging in 15 business categories, including micro and small-scale industries.
“These measures undermine the spirit of the EAC Common Market Protocol, which grants partner states equal rights to establish and operate businesses,” said Kinyanjui, urging Tanzania to rescind the new restrictions.
Kenya has initiated bilateral engagements and is also working through EAC mechanisms, including the recent Extraordinary Sectoral Council on Finance and Economic Affairs, which directed the EAC Secretariat to audit all taxes and charges that contravene regional trade agreements.
