The Tanzanian government has officially prohibited foreigners—including many Kenyans—from engaging in 15 small- and medium-sized business activities within its borders.
This new directive, announced by Tanzania’s Minister for Industry and Trade, Selemani Saidi Jafo, is expected to significantly impact current and aspiring foreign investors, particularly those from neighboring Kenya.
According to the government’s notice, the ban targets various industries, including agriculture, tourism, mining, environment, and technology.
Among the restricted ventures are popular and commonly practiced businesses such as mobile money transfer services, repair of mobile phones and electronic gadgets, and salon services—unless the salon is based within a hotel or strictly caters to tourists.
Other business activities now off-limits to non-citizens include home and office cleaning services, small-scale mining, tour guiding, operating or owning museums and curio shops, and managing radio or television stations.
Additionally, foreigners can no longer run postal and parcel delivery services, work as brokers in real estate or business deals, engage in crop buying, own or operate gambling machines outside of casinos, or run micro- and small-scale industries.
Foreigners found running any of these restricted businesses risk facing stiff penalties—up to Tanzanian Shillings (Tsh) 10 million (about Ksh502,927) in fines, and possibly a jail sentence of up to six months.
Likewise, any Tanzanian citizen who assists a foreigner in these prohibited trades could be fined Tsh5 million (approximately Ksh251,463) and sentenced to three months in prison.
However, there is a slight grace period for foreigners already operating such businesses. According to the minister, those who currently hold valid business licenses in the restricted categories may continue operating only until their licenses expire. Once expired, renewals will not be permitted.
This clampdown on foreign involvement in small and medium enterprises comes shortly after another regulation affecting visitors was announced.
Tanzania’s Ministry of Finance recently revealed that starting January 2026, all foreigners visiting the country (excluding those from East African Community and Southern African Development Community nations) will be required to purchase mandatory travel insurance at a cost of nearly Ksh5,700.
This travel insurance, which is part of Tanzania’s 2025/2026 fiscal policy, will be valid for 92 days and must be bought upon entering the country.
The insurance will cover essential services such as emergency medical treatment, evacuation, repatriation, search and rescue missions, and compensation for lost luggage.
The Tanzanian government stated that this policy aims to reduce the financial strain on its public health system, which often supports tourists without reimbursement. Initially planned for this fiscal year, the rollout of the travel insurance policy was pushed to January 2026 to allow time for stakeholder consultations.
These back-to-back regulations mark a major shift in Tanzania’s business and tourism landscape—tightening controls for foreigners while prioritizing local economic participation and public resource protection.
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