Strict enforcement measures in Tanzania have been put in place to target foreign-operated small businesses, especially those in retail and service sectors that are managed by non-citizens.
The enforcement has led to the shutdown of a large number of Kenyan-owned shops and businesses in the border towns such as Arusha and Moshi which in turn creates a substantial loss of the local economy.
The Kenyan government has made a formal complaint on the matter through the Foreign Ministry that deplored the treatment of Kenyan nationals. Kenya’s position is that Tanzania needs to respect the EAC agreements that ensure the rights of people to travel within the member countries.
The Cabinet Secretary for Foreign and Diaspora Affairs of Kenya warns that such policies could harm the regional cooperation and destabilize the livelihoods of long-established cross-border traders.
The entrepreneurs affected are still ambiguous about their business nature as Tanzania is yet to make any clear announcement regarding special treatment or transition periods.
The question of whether or not the enforcement is in line with the EAC Common Market rules that facilitate the free movement of people, labor, and services is being raised by the incident. Despite the fact that Tanzania has, to a great extent, eased trade restrictions, the current strictness in the implementation is very high.
The disagreement is positioned in the middle of the extensive regional economic integration plans, with Kenya-Tanzania trade having increased greatly over the past few years. Both governments are planning for future talks to sort out the matter and to give clear guidelines on operations, which might be used as examples for other EAC conflicts.
