A Ugandan lawyer has taken legal action against a new Tanzanian law that restricts non-citizens, including East African Community (EAC) nationals, from engaging in various small and medium-sized business activities.
Steven Kalali filed the case before the East African Court of Justice (EACJ) First Instance Division in Arusha, through the court’s Kampala sub-registry. He is contesting the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which was issued on 28 July by Tanzania’s Minister of Trade, Selemani Saidi Jafo.
Click here to join our WhatsApp Group and Receive Daily News
Kalali argues that the measure breaches multiple provisions of the EAC Treaty and the Protocol on the Establishment of the EAC Common Market, which guarantees the free movement of labour, services, and investments among member states.
The Tanzanian directive criminalises participation by EAC nationals in several sectors typically dominated by small and informal enterprises. These include retail trade outside of supermarkets, mobile money operations, electronics repair, hairdressing (excluding tourist services), tour guiding, cleaning services, and small-scale mining. It also covers the operation of curio shops, museum stores, and micro industries.
Individuals found in violation face fines of up to 10 million Tanzanian shillings (approximately 14 million Ugandan shillings) or up to six months in prison.
Represented by M/s Neon Advocates, Kalali claims that the order introduces illegal non-tariff barriers and discriminates against EAC citizens. He says it undermines regional integration efforts by criminalising economic activity that is protected under the EAC’s legal framework.
In a sworn affidavit, Kalali describes himself as a committed supporter of regional integration. He warns that the new law risks setting a harmful precedent that could see other partner states adopt similarly exclusionary policies.
“The petition is aimed at defending the rights of East Africans to engage in lawful work and trade across borders without facing criminal penalties,” he stated. He also criticised the punitive approach of the law, which he says violates the principle of free movement and fair treatment under EAC law.
Kalali is asking the court to declare the Tanzanian order invalid, particularly Section 3, which he says unlawfully restricts the rights of EAC citizens. He also seeks a permanent injunction preventing Tanzania from enforcing the order against EAC nationals.
The case has been filed in the public interest, according to Kalali, who notes that many East Africans depend on cross-border business for their survival. The Attorney General of Tanzania has 45 days to respond to the petition before a court hearing is scheduled.
Also Read: Amama Mbabazi’s Daughter Wanted Over Unpaid Shs 450m Loan
