The East African Community (EAC) remains Kenya’s largest export market, accounting for 28.1 Percent of the country’s total world exports, estimated at Ksh. 297B in 2024.
The United Republic of Tanzania ranks as Kenya’s second-largest EAC trading partner after Uganda, with intra-community transfers of Ksh.63 billion in 2024.
The Government of Kenya has, however, noted with concern the imposition of new and discriminatory tax measures by the United Republic of Tanzania, which threaten the regional trade gains.
Of concern is the recent Tanzania Finance Act 2025 and the amended Tanzania Excise (Management and Tariff) Act 2019, which have introduced excise duties and the Industrial Development levy, at 10 and 15 percent, respectively.
Also, of concern is the recently gazetted Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 that prohibits non-Tanzanian citizens from trading in 15 services, including the operation and ownership of Micro and Small Industries. The order, which includes significant penalties for violations, takes immediate effect except for current license holders.
