Kenya and Tanzania have reached an agreement to ensure Kenyan traders continue doing business without interference, the EAC ministry has said.
EAC PS Caroline Karugu in a statement on Thursday said the two governments had concluded bilateral consultations following a ban by Tanzania authorities on foreign traders, a directive that affected Kenyan business persons as well.
Karugu said Kenya had earlier registered her concerns over the order citing inconsistencies with key provisions of the EAC Common Market Protocol, particularly articles that guarantee the free movement of persons, services, and the right of establishment for citizens of EAC partner states.
“The United Republic of Tanzania reported that so far, no Kenyan business has been affected by the order and further reassured no Kenyan business will be affected even in future. Kenyans engaging in legitimate business activities in the United Republic of Tanzania are therefore assured that they should continue to run their businesses without fear of interference.
“Further encourage Kenyan nationals running businesses in the United Republic of Tanzania to engage the Kenyan High Commission in the event of any distress and for information,” she said in the statement.
EAC CS Beatrice Askul Moe had on Tuesday told a House team that Kenya had dispatched a team to Tanzania to negotiate a bilateral deal following the ban.
CS Askul told the Departmental Committee on Defence, Intelligence, and Foreign Relations that a technical team concerned with harmonizing matters within the provisions of the EAC treaty was in Dar es Salam for talks on matters that were prohibited.
“I think by the third [October 3], the ministers will be getting the final documents on the same. So we are on course and we are consulting on bilateral talks between Kenya and Tanzania,” Moe told the committee.
EAC ministry officials accompanying the CS added that Tanzanian authorities had informed them the ban was not targeted at Kenyans but to protect their interests.
“Their problem was the Chinese and the Turks, who have infiltrated all their local businesses, which is now everywhere. Secondly was that their SMES had been infiltrated by foreign security apparatus. Those were the issues and they had to address and they didn’t have any other way of address that other than addressing foreigners, a category we fall under,” the officials said.
Tanzania in July announced a ban on foreigners from participating in small businesses. Among the affected sectors are wholesale and retail sale of goods, mobile money transfer business, repair of mobile phones and electronic devices, salon businesses (with an exception for hotel or tourism-related operations), home, office and environmental cleaning services, and small-scale mining.
Others are postal activities and parcel delivery within the country, tour guiding within the country, establishment and operation of radio and television, operation of museums or curio shops, brokerage or agency in businesses and real estate, clearing and forwarding services, on-farm crop purchasing operations and ownership or operation of gambling machines or devices (with an exception for casino premises).
Tanzania has also prohibited non-citizens from ownership and operation of micro and small industries.
“Licensing authorities are forbidden from issuing or renewing licenses for non-citizens to conduct these prohibited activities once the order is in effect,” Tanzania Minister for Industry and Trade Selemani Jafo said in a special gazette notice dated July 28.
Non-citizens engaging in prohibited business activities face a fine of at least Tsh10 million (Sh505,806), up to six months imprisonment, and revocation of their visa and resident permit.
The policy, hence, is part of a broader government strategy to promote citizen-led growth, expand eсоnomic opportunities for Tanzanians and reshape the structure of local business ownership, cording to Tanzania’s Ministry of Industry and Trade.
The move was deemed as contravention of the EAC Common Market Protocol, signed in November 2009 and effected on July 1, 2010.
The protocol established a single market within the EAC, facilitating the free movement of goods, persons, services, labour and capital.
