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Tanzania has enacted a new law restricting foreign nationals from owning and operating small-scale businesses, igniting a strong reaction from neighboring Kenya. The directive, introduced by Tanzania's Trade Minister Selemani Jafo, targets 15 sectors, including mobile money transfers, tour guiding, small-scale mining, beauty salons, curio shops, and media operations.

Jafo explained the goal is to protect local employment and entrepreneurship, as a growing number of foreigners, notably from China, have become active in sectors traditionally dominated by Tanzanians. Locally, the decision has received support, especially after a strike at Dar es Salaam's Kariakoo shopping district protested unfair competition from foreign traders

Severine Mushi, leader of the Kariakoo traders' association, expressed approval, stating, “We've welcomed this decision because it protects the livelihoods of Tanzanian traders.” Violations of the ban come with serious consequences, including hefty fines, imprisonment for up to six months, and revocation of visas.

Despite its domestic backing, the ban has caused outrage in Kenya, where some critics argue it undermines the East African Community (EAC) agreements that advocate for free movement and trade among member states. Kenyan National Assembly Trade Committee chairman Bernard Shinali has warned that Kenya might respond with similar restrictions, highlighting that many Tanzanians work in Kenya’s mining sector.

Kenyan hotelier Mohammed Hersi questioned the decision, stating, “Protectionism will never help a country to thrive." Online backlash from Kenyans has labeled the move as a significant setback for regional integration, stressing that Tanzanians freely conduct business in Kenya without any restrictions.

The strained relations between Tanzania and Kenya have a history, marked by economic and political tensions. In particular, Tanzania's implementation of protective tariffs and import bans has previously drawn ire from its neighbors. Recent incidents, including the deportation of Kenyans during a political trial in Tanzania, have further complicated diplomatic relations.

As Tanzania prepares for general elections in October, with the ruling CCM party likely to maintain power, these developments may shape future bilateral relations within the region. The responses from both governments will be crucial in determining the trajectory of Tanzania-Kenya relations in the coming months.