Tanzania's recent prohibition on foreign ownership of small businesses has sparked significant backlash from neighboring Kenya, emphasizing the potential for diplomatic tensions. Trade Minister Selemani Jafo announced that this directive will cover 15 sectors, including mobile money transfers, beauty salons, and tour guiding, reflecting an agenda to safeguard local livelihoods while ensuring Tanzanians have greater access to small-scale business opportunities. The community's response has largely been positive as they cite excessive foreign participation, particularly among Chinese nationals, as a threat to local traders' wellbeing.

Conversely, this ban has stirred discontent in Kenya, with claims that it contravenes EAC agreements that advocate for free movement and trade amongst member states. Kenyan officials, including National Assembly Trade Committee chairman Bernard Shinali, have suggested that retaliatory measures could arise, potentially restricting Tanzanian businesses within Kenya. Concerns have also escalated on social media, with critics arguing that this could undermine regional integration and cooperation.

The roots of the issue are underscored by historical economic tensions between Tanzania and Kenya, which have previously faced disagreements over tariffs and market access. As preparations for Tanzania's upcoming general elections intensify, this developing situation serves as a crucial test for Kenya-Tanzania relations, with both nations poised to navigate this complex dynamic in the landscape of East African commerce.