The East African Community (EAC) Secretariat has issued a firm reminder to Partner States to uphold their commitments under the EAC Common Market Protocol, following mounting concerns over recent trade restrictions introduced by Tanzania.
In a statement released by EAC Secretary General Hon. Veronica M. Nduva, the Secretariat emphasised that “unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol,” referencing the legally binding Schedule of Commitment on the progressive liberalisation of services.
This comes in the wake of Kenya’s formal protest against Tanzania’s newly enacted Business Licensing Order, which bars non-citizens from operating in 15 key sectors—including mobile money services, tour guiding, and micro-enterprise ownership.
Kenya’s Trade Cabinet Secretary Lee Kinyanjui described the move as “discriminatory” and warned that it “will hurt both our economies.”
Calls for Regional Policy Coordination Under Protocol Article 13
“Partner States must consult and coordinate on policies that affect cross-border trade,” Kinyanjui urged, citing Article 13 of the Protocol, which guarantees EAC nationals the right to establish and operate businesses across member states without discrimination.
Tanzania’s Minister for Industry and Trade, Hon. Selemani Saidi Jafo, defended the policy as a measure to “safeguard our people’s livelihoods and ensure Tanzanians benefit from opportunities in critical sectors.”
However, the directive has raised alarms across the region, with stakeholders questioning its alignment with the EAC’s integration goals.
The EAC Secretariat confirmed that it is conducting a compliance analysis and will present findings at the upcoming Sectoral Council on Trade, Industry, Finance, and Investment. The move signals a potential reckoning for partner states that deviate from agreed liberalisation paths.
Trade Growth Persists Amid Non-Tariff Barrier Concerns
Despite mounting tensions, intra-EAC trade continues to grow, reaching $74.03 billion in 2024, led by Kenya and Uganda. Yet, the persistence of non-tariff barriers and abrupt policy shifts threatens to derail regional progress.
The Secretariat reaffirmed its commitment to a seamless regional integration process, calling on all Partner States to “uphold the principles enshrined in the establishing Treaty and Common Market Protocol.”
