Foreigners, Kenyans Included, Not Allowed To Do These 15 Businesses In Tanzania

Tanzania has imposed a ban on foreigners engaging in 15 types of small and medium-sized enterprises, a decision likely to impact many Kenyan entrepreneurs currently running or planning to launch businesses there.

In a directive issued by Industry and Trade Minister Selemani Saidi Jafo, the restricted ventures span across the mining, tourism, agriculture, environmental, and tech sectors.

Prohibited businesses include mobile money services, electronics and phone repairs, salons (except in hotels or for tourism), cleaning services, small-scale mining, postal and parcel deliveries, tour guiding, running media stations, managing museums and curio shops, business and real estate brokering, as well as clearing and forwarding services.

Foreign nationals are now barred from engaging in farming, crop buying, running or owning gambling machines outside of casinos, and managing or owning micro and small-scale industries in Tanzania.

An aerial view of Dar es Salaam in Tanzania. /iSTOCK

Those found violating this directive risk a fine of up to Tsh10 million (approx. Ksh502,927) or a jail term of up to six months.

The minister further warned that any Tanzanian caught assisting a foreigner in operating these restricted businesses will face a three-month prison sentence and a fine of Tsh5 million (approx. Ksh251,463).

"Upon coming into effect of this Order, a non-citizen who holds a valid licence in respect of any of the business activities specified in the Schedule shall continue carrying out such activity up to such time when the licence expires," the notice read.

Tanzania's move to restrict small businesses to its citizens is sparking controversy and is being seen as a potential non-tariff barrier to free trade within the East African Community (EAC).

The decision disrupts the long-standing practice of allowing citizens from member states to cross borders and set up small ventures—such as salons, mobile money outlets, phone repair services, and tour guiding—provided they have the necessary permits.

However, the country cites the need to create jobs and boost economic opportunities for its population of nearly 60 million.

The move threatens to disrupt trade within the EAC and may trigger reciprocal restrictions by countries affected, targeting Tanzanian nationals in return. An estimated 40,000 Kenyans currently live and work in Tanzania, although the number involved in informal businesses such as salons is not precisely known. Citizens from other EAC nations—including Rwanda, Burundi, Somalia, South Sudan, and the Democratic Republic of Congo—also participate in Tanzania’s informal economy.

The announcement follows a recent notice by Tanzania's Ministry of Finance, which stated that starting next year, foreign visitors will be required to pay nearly Ksh5,700 for compulsory travel insurance. The government says the measure is aimed at easing pressure on the country’s public healthcare system.

The directive exempts nationals from East African Community (EAC) and Southern African Development Community (SADC) member states. However, travellers from outside these regions may still be subject to the fee.

Even worse, in early May, the Bank of Tanzania (BoT) prohibited the use of foreign currencies in domestic transactions, mandating that all goods and services be priced and paid for exclusively in Tanzanian Shillings (TZS).

As a result, individuals, businesses, and traders are no longer allowed to quote prices or accept payments in US dollars, Kenyan shillings, or any other foreign currency.