Kenya mulls retaliation after Tanzania locks out foreign traders

Kenya and Tanzania are on a war path, as thousands of Kenyans residing and doing businesses in Tanzania are staring at a business shutdown.

This after Tanzania's Minister for Trade and Industry Selemani Saidi Jafo on Tuesday amended the Business Licensing Act, a decision that would see all foreigners cede small and medium-sized businesses to natives.

Foreign Affairs Cabinet Secretary Musalia Mudavadi said the actions from Tanzania are far-reaching and are already on President William Ruto's table.

“President Ruto has talked with President Samia on how to resolve this matter in diplomatic ways,” said Mudavadi.

But Kenya's Trade CS Lee Kinyanjui is breathing fire on the other end, calling for Tanzania to withdraw the new directives, warning that imposing similar sanctions for Tanzania were on the table.

“On whether Kenya will retaliate...Yes, that is one of the cards on the table but we first want to exhaust the diplomatic channels,” he said on Wednesday.

In the new order by Samia Suluhu's administration, businesses such as retail shops, mobile money transfers, mobile phone repairs and saloon businesses are to be left for Tanzanians alone.

Home managers, curio shops, real estate brokering, clearing and forwarding services, ownership of gambling machines are businesses now reserved for Tanzanians only.

“We have several Kenyans working in Tanzania and doing businesses and majority of them will be affected,” CS Kinyanjui retorted.

Tanzania is now facing accusations of going against the East African Community agreements that opens business to all.