Kenya has raised concern over Tanzania’s new tax laws and business licensing rules, warning that they risk undermining gains made in EAC intra-Africa trade.
The new measures, introduced under Tanzania’s Finance Act 2025 and an amended Excise Act, include fresh levies of 10% and 15%.
Another order bars non-citizens including East Africans from running 15 types of businesses, such as small industries.
While current license holders are exempt, the order took effect immediately and comes with heavy penalties.
Kenya says the changes go against the EAC Common Market Protocol, which allows citizens to trade and invest freely across member states.
Trade between Kenya and Tanzania hit KSh 63 billion in 2024, making Tanzania Kenya’s second-largest partner in the region.
While Nairobi respects each country’s right to legislate, it’s urging Tanzania to lift the restrictions and return to EAC-agreed rules.
Talks are underway, including planned meetings in Arusha this August, aimed at resolving the matter.
Kenya remains hopeful that ongoing dialogue will uphold the EAC’s vision of open borders, equal opportunity, and shared growth.
