A Ugandan lawyer has dragged the Government of Tanzania before the East African Court of Justice (EACJ), challenging a new law that prohibits non-citizens—including East African Community (EAC) nationals—from engaging in certain business activities within Tanzania.
Steven Kalali, a Kampala-based advocate, filed the reference against Tanzania’s Attorney General in response to the enactment of the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which came into force on July 28, 2025.
Kalali argues that the order violates the EAC Treaty and the Common Market Protocol by imposing unjustified restrictions on the right of EAC citizens to operate freely across borders.
“The legislation constitutes an unlawful tariff barrier to trade and directly undermines the principles of free movement of goods, persons, and services within the East African region,” Kalali stated in his court filing.
The law criminalizes participation by foreign nationals—including EAC citizens—in a range of business sectors listed in the schedule, with penalties imposed for violations.
Kalali specifically contests sections 3(1), 3(2), and 3(3)(a) of the order, which he says amount to “unjustified and discriminatory exclusions.”
In his petition, Kalali seeks several remedies:
- A declaration that the order violates the EAC Treaty and Common Market Protocol
- An injunction restraining Tanzania from enforcing the law
- The nullification of the entire order
- Costs of the suit
He cited breaches of Articles 5, 6, 7, and 8 of the EAC Treaty and Articles 4, 13, 16, 24, and 29 of the Common Market Protocol—provisions that guarantee regional cooperation, non-discrimination, and the free movement of persons, labour, goods, and services.
“Tanzania, being a partner state and signatory to the Common Market Protocol, is obligated to uphold the goals of regional integration, not restrict them,” Kalali emphasized.
The EACJ has yet to fix a hearing date for the case. Tanzania’s Attorney General is expected to file a response in due course.
If the case succeeds, it could set a precedent for how far member states can go in enforcing protectionist economic measures within the bloc. It also tests the limits of national sovereignty in the face of binding regional agreements.
The East African Community, comprising Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo, has long struggled to balance regional integration with domestic interests.
The Kalali case adds to a growing list of disputes over trade barriers, work permits, and residency restrictions that continue to test the bloc’s cohesion.
