Regional Unity at Risk? Nairobi MCA Slams Tanzania’s New Business Ban

A Nairobi Member of County Assembly (MCA) has made a passionate plea to Tanzanian President Samia Suluhu to reconsider the new directive that restricts foreign nationals from engaging in certain small and medium-sized businesses in Tanzania.
Korogocho MCA Absalom Odhiambo, also known as Matach, voiced strong opposition to the new rules on Thursday, calling them “economically exclusionary” and a move that goes against the spirit of regional unity and Pan-African cooperation.
“The decision to bar foreigners from basic economic activities like street hawking or running salons doesn’t just isolate Kenya, it sends a worrying signal about East Africa’s commitment to integration,” Matach said during a press briefing.
The directive, which took effect on July 29, impacts a broad range of sectors. The prohibited list includes mobile money operations, electronic repairs, small-scale mining, salon services (unless within a hotel or tourist facility), cleaning services, tour guiding, and even the ownership or management of radio and TV stations.
According to Matach, the policy shift could strain diplomatic and economic relations between the two countries, especially given the significant number of Tanzanians who operate freely in similar sectors within Kenya.
“We have welcomed our Tanzanian brothers and sisters with open arms. Many are doing business and contributing to our economy without facing such limitations,” he stated. “So why are Kenyans now being shown the door?”
The ban also extends to areas like agriculture, gambling (outside licensed casinos), real estate brokering, and small-scale industrial operations. Foreigners found in violation of the new rules could face a fine of up to Tsh10 million (approximately Ksh502,000) or six months in jail. Tanzanian citizens who assist them could also be fined Tsh5 million (around Ksh251,000) and face a three-month prison sentence.
Matach warned that the directive could leave hundreds of Kenyan entrepreneurs jobless and disillusioned, many of whom moved to Tanzania believing that member states of the East African Community were moving toward greater economic cooperation.
In his remarks, the MCA called for a more balanced approach that would protect local interests without undermining cross-border business ties.
“President Samia, we watched your officers torture activist Boniface Mwangi and we did not speak,” he said, referencing a past incident. “This is now way too much.”
He also urged Kenyan authorities to take a stronger stance, suggesting they “kick out all Tanzanian nationals who entered the country without legal process before applying the same directives in Kenya.”