Tanzania has banned foreigners from opening small businesses in a move that has been widely interpreted as targeting Kenyans living and working in the country.
The businesses that have been listed as forbidden from being owned or operated by foreigners include retail and wholesale trades, mobile money transactions, small-scale manufacturing, tour guiding, real estate brokerage, parcel delivery services and micro and small industry operations.
Provision of domestic and environmental cleaning services, on-farm crop purchasing, clearing and forwarding services, and small-scale mining operations, gambling machines outside casino premises, establishment and running of radio or television stations, operation of museums or curio shops.
The bank is contained in the new laws dubbed Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which was published on July 28, 2025 under the Government Notice No. 487A and signed by the Minister for Industry and Trade, Dr. Selemani Jafo.
According to the new law, non-citizens in the country who are caught operating the listed businesses shall be subjected to fines of up to Tsh10 million or jail time for a period of up to six months. Their work permits and residence visas shall then be canceled and they will be required to leave the country immediately upon fulfilling their penalties.
The ban comes as more Kenyans venture into the neighbouring country for business. However, these ventures have been interpreted as harmful to the economy, with policy makers claiming that foreign business owners end up sending their profits back to their countries which is a way of depriving the country revenues.
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“When small businesses are foreign-owned, profits often leave the country. But when a Tanzanian owns the business, they are more likely to re-invest in the local economy, employ fellow Tanzanians, and contribute to national development. That’s the multiplier effect we are looking for,” said Akida Mnyenyelwa, the Director of Policy and Advocacy at the Confederation of Tanzania Industries (CTI).
