Week 31 of 2025: 28th July to 01st August 2025

28 July 2025by finandlaw-admin

28th Jul 2025
Source: The Citizen
UNITED NATIONS TO RELOCATE THREE MAIN HEADQUARTERS TO NAIROBI BY 2026

The United Nations is set to relocate the global offices of UNICEF, UNFPA, and UN Women to Nairobi by 2026. This move will elevate the Kenyan capital to the ranks of New York, Geneva, and Vienna, making it one of only four cities globally to host multiple UN headquarters.

Nairobi already hosts 23 UN agencies, including flagship bodies such as UNEP and UN-Habitat. There are also plans for the Office for the Coordination of Humanitarian Affairs (OCHA) to move its operations to Africa, further strengthening the region’s role in global humanitarian response.

This relocation is part of the UN’s broader “UN@80” reform agenda. Secretary-General António Guterres has cited cost efficiency as a key driver for the move. Operating costs in New York and Geneva, including expenses related to office space, staffing, and logistics, are significantly higher compared to those in Nairobi.

Beyond financial considerations, the relocation is viewed as a strategic realignment towards Africa, which accounts for over 60% of the UN’s humanitarian work. This shift is being regarded as a major vote of confidence in Nairobi as a global diplomatic hub.”

Source: Daily News
LAND, TOBACCO, GAMBLING IN REVIEW
The Law Reform Commission of Tanzania (LRCT) has embarked on a legal review process targeting laws that regulate the consumption of shisha and tobacco, youth morality, gambling, and land disputes. Mr. George Mandepo, the LRCT Executive Secretary, stated in an interview with a local radio channel over the weekend that this review is part of renewed efforts to protect public health, uphold national values, and enhance productivity in various economic activities.

The commission aims to review specific pieces of legislation in response to a worrying trend of rising shisha use, particularly among young people. The government has recognized the need for legal reforms to mitigate the health and economic consequences of this trend. Additionally, the government is concerned about the erosion of moral values among youth, especially those increasingly drawn to gambling and betting activities, often shortly after school hours. Such habits undermine the nation’s future human capital and productivity.

Mr. Mandepo indicated that the LRCT is preparing for a major review of land-related laws in the coming year due to persistent land conflicts across the country. Christina Binal, Head of the Legal Review Division at LRCT, highlighted significant progress made during the 2024/2025 period.

The commission has reviewed several key legal frameworks, particularly those governing companies and business names, to identify weaknesses affecting implementation and to offer policy recommendations to the government. There is a need to establish a more unified and streamlined information-sharing system in this regard. Ms. Binal noted that the commission successfully reviewed the Arbitration Act (Cap. 15) to address current gaps in dispute resolution mechanisms.

She stated that the goal, in line with directives given by President Samia Suluhu Hassan upon taking office, is to propose amendments that will reduce the backlog of court cases, cut costs, and expedite dispute resolution, ultimately supporting a more enabling environment for investment and business growth. The LRCT is similarly reviewing the legal framework related to loan dispute resolution in the banking sector, in response to ongoing challenges in handling such cases efficiently.

29th Jul 2025
Source: The Citizen
BUSINESSES THAT FOREIGNERS ARE NOT ALLOWED TO DO IN TANZANIA
The Tanzanian government has officially banned foreign nationals from engaging in a wide range of small and medium-sized business activities, signalling a major shift in the country’s domestic economic policy. This move, announced through Government Notice No. 487A dated 28 July 2025, aims to reserve key economic spaces for Tanzanian citizens, empower local entrepreneurs, and safeguard national interests.

The notice prohibits foreigners from participating in 15 specific types of businesses, including mobile money transfer operations; the repair of mobile phones and other electronic devices; and hair and beauty salons, unless these services are located within hotels or cater specifically to the tourism sector. Foreigners are also restricted from offering domestic, office, or environmental cleaning services. Furthermore, they are barred from engaging in small-scale mining activities or providing postal and local parcel delivery services. Tour guiding within the country is now exclusively reserved for Tanzanian nationals.

In addition, foreign nationals are no longer allowed to establish or operate radio or television stations, nor are they permitted to run museums or curio shops. Licensing authorities have been directed to immediately stop issuing or renewing business licences for non-citizens in relation to the listed activities. Non-compliance may result in a fine of up to TZS 10 million, imprisonment for up to six months, or both. Additionally, violators risk having their residence permits and visas revoked.

Tanzanian citizens who assist or facilitate foreigners in undertaking these prohibited activities may also face legal penalties, including a fine of TZS 5 million or a three-month jail term.

Source: Daily News
GOVERNMENT PUSHES FOR INVESTMENT IN REAL ESTATE TO BRIDGE HOUSING DEFICIT
The government has called on both local and foreign investors to channel capital into Tanzania’s real estate sector to support sustainable urban development and address the country’s significant housing deficit, which currently stands at 3.8 million units.

Speaking at the Tanzania–Japan Seminar on Housing and Urban Development in Dar es Salaam yesterday, the Minister for Lands, Housing and Human Settlements Development, Honourable Mr. Deogratius Ndejembi, attributed the growing shortfall to the rapid urbanisation experienced over the past five decades.

Mr. Ndejembi highlighted the strong need for collaboration with international partners, particularly from Japan, to complement government efforts in expanding housing access through affordable mortgage schemes, innovative financing options, and green building technologies. He noted that Tanzania’s urban population has surged from 6.2% in 1967 to 34.9% in 2022, with projections estimating it will reach 59% by 2050 — making Tanzania one of Sub-Saharan Africa’s fastest urbanising nations.

Cities such as Dar es Salaam, Dodoma, Mwanza, and Arusha, along with growing towns like Geita and Katavi, have witnessed significant urban growth, highlighting both the challenges and economic opportunities in the real estate sector. Mr. Ndejembi pointed out that the housing gap is particularly acute for low- and middle-income earners, who often face high rental costs, expensive construction materials, and limited access to affordable financing.

30th Jul 2025
Source: The Citizen
TANZANIA IMPOSES MANDATORY EXAMS FOR SENIOR PUBLIC OFFICIALS IN SWEEPING LEADERSHIP REFORM
The government has introduced mandatory examinations for newly appointed or promoted senior public officials as part of efforts to improve leadership efficiency and accountability in the public service.

The new policy, announced by Chief Secretary Dr. Moses Kusiluka on Monday, aims to ensure that only competent individuals with a sound understanding of government systems are entrusted with leadership responsibilities. Dr. Kusiluka stated that this is how it is done globally.

“Development begins with a strong public sector; the government is now in the process of introducing exams for officials after appointment or promotion to improve efficiency and ensure national targets are met,” he said while speaking at the opening of a four-day training programme for chief executive officers and managing directors of public institutions, organised by the Office of the Treasury Registrar in collaboration with the Uongozi Institute.

Dr. Kusiluka emphasised that the exams would serve as a prerequisite for assuming office, underlining the government’s drive to build a results-oriented, accountable, and professional public sector. He stressed the importance of aligning leadership with the implementation of national development goals.

Source: The Citizen
KENYA BANS HOME ALCOHOL DELIVERIES AND SUPERMARKET SALES, NEW RULES TO PROTECT YOUTH
The Kenyan government has banned the sale of alcohol in supermarkets and prohibited home deliveries as part of new national guidelines aimed at regulating alcohol consumption.

The measures are outlined in the National Policy on Alcohol, Drugs and Substance Use, which was approved by the Cabinet in June. Under the policy, the legal drinking age has been raised from 18 to 21.

The new rules also ban digital and online alcohol sales, including deliveries made through e-commerce platforms and vending machines. Outlets selling alcohol will no longer be allowed to operate within 300 metres of schools, places of worship, or residential areas.

The government states that the policy is a response to concerns over rising alcohol use, particularly among young people. Health warnings in both English and Kiswahili will now be mandatory on alcohol packaging, and restrictions have been placed on alcohol advertising, especially in areas where children are likely to be exposed.

The policy will be implemented by the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), in coordination with county governments. Industry representatives have warned of possible job losses and business closures as a result of the new rules.

Source: The Guardian
TANZANIA PORTS AUTHORITY SIGNS AGREEMENT TO LAUNCH CARGO TRANSFER TO KWALA DRY PORT
The Tanzania Ports Authority (TPA) and several regulatory authorities have signed an operational framework agreement with a range of private sector stakeholders for the use of the Kwala Dry Port at Kibaha, Coast Region.

Mr. Plasduce Mbossa, the TPA Director General, stated after the signing in Dar es Salaam that the pact outlines procedures for the operation, transfer, storage, and transportation of cargo from Dar es Salaam Port to the Kwala Dry Port. A variety of government institutions and private sector stakeholders currently involved at Dar Port will participate in this arrangement. He affirmed at the press conference that the dry port initiative was introduced in response to a considerable increase in cargo volumes at Dar Port, driven by growing transit trade, boosted by major infrastructure improvements by the government and private investors.

He highlighted strategic partnerships with investors such as DP World and the Tanzania East Africa Gateway Terminal Ltd (TEAGTL), a firm linked with multinational port operating companies such as the Adani Group of India, which has helped transform Dar Port through a substantial increase in clients from neighbouring countries.

The dry port will receive cargo transported from the main port via the old metre-gauge railway, which has been revamped and tested, while cargo for the Standard Gauge Railway (SGR) will also be loaded from that point to ease congestion at the main port.

The dry port occupies a large area, with five hectares already developed in the first phase, and construction now moving into the second phase. The new facility will have the capacity to store 3,500 containers at a time.

Mr. Machibya Masanja, the Tanzania Railways Corporation (TRC) Director General, mentioned that, as one of the key stakeholders in passenger and cargo transportation, the railway operator is fully committed to ensuring the success of the cargo loading transfer to the new facility. He noted that transferring cargo operations to Kwala presents a unique opportunity for business operators, offering easier access to shipped merchandise — which, in turn, promises to enhance government revenues.

He urged all institutions involved in this agreement to diligently fulfil their responsibilities, expressing confidence that no hiccups are likely to arise in implementing the arrangement, as all concerned agencies are already performing effectively. Mr. Laksiri Nonis, the TEAGTL Chief Operating Officer, expressed satisfaction in being part of the agreement, confirming the company’s readiness for operational changes.

31st Jul 2025
Source: The Citizen
TANZANIA MOVE TO RESTRICT FOREIGN BUSINESSES SPARKS OUTCRY FROM KENYA
The Kenyan government has formally raised objections to recent trade and licensing restrictions imposed by Tanzania, warning that these measures threaten regional economic integration and contravene established East African Community (EAC) agreements.

In a press release issued by Kenya’s Ministry of Investments, Trade and Industry, Cabinet Secretary Mr. Lee Kinyanjui expressed concern over Tanzania’s newly enacted Finance Act 2025 and the amended Business Licensing Regulations, which collectively introduce what Kenya terms “discriminatory tax measures” and bar non-Tanzanians from engaging in 15 key business sectors.

Kenya’s statement highlights that the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order 2025 bans EAC citizens from sectors including micro and small industries. Furthermore, it claims that these provisions, now in effect for new entrants, pose a direct threat to Kenyan enterprises operating in Tanzania.

Tanzania is Kenya’s second-largest trading partner within the EAC, with cross-border trade valued at KSh 63 billion in 2024. The EAC region accounts for 28.1% of Kenya’s total exports, underlining the potential economic impact of the new restrictions.

The statement notes that while Kenya acknowledges the sovereign rights of EAC partner states to legislate on domestic matters, it emphasises the need for coordination, consultation, and consistency on issues that affect cross-border trade.

It should also be noted that the following are the 15 categories of businesses that a foreigner is not allowed to engage in within Tanzania:

Wholesale and retail trade (except supermarkets or specialized producer outlets).

  1. Mobile money transfer services.
  2. Mobile phone and electronic device repair.
  3. Salon services (unless inside hotels or tourist sites).
  4. Domestic, office, or environmental cleaning.
  5. Small‑scale mining.
  6. Parcel or postal delivery within Tanzania.
  7. Tour guiding.
  8. Radio and television operation.
  9. Museums or curio shops.
  10. Real estate or business brokerage.
  11. Clearing and forwarding services.
  12. Buying crops on farms.
  13. Gambling machines outside of casinos.
  14. Operating micro and small industries.

The Tanzanian government’s decision to restrict foreigners from operating in these areas has drawn mixed reactions after it was formally introduced effective July 28, 2025 under the Business Licensing (Prohibition of Business Activities for Non‑Citizens) Order, 2025.

Source: Daily News
MPANGO PUSHES FOR DIGITAL TRANSACTIONS
Vice President Hon. Dr Philip Mpango has underscored the importance of adopting digital financial systems to boost efficiency and reduce reliance on cash-based transactions.

Speaking during the launch of the Bank of Tanzania’s new Integrated Core Banking System (iCBS) in Dar es Salaam, he stated that digital platforms offer significant economic benefits for both individuals and the nation. Using digital systems is crucial for improving efficiency, transparency, and security in financial transactions while also reducing the risks associated with cash reliance. He emphasised the need for robust cybersecurity measures to protect the new system and all payment platforms from online threats and called on banks to accelerate the shift towards digital payments.

The iCBS, which replaces the Central Banking System (CBS) used since 1999, began development in November 2021 and was completed in September 2023. The new system is designed to enhance financial data management and operational efficiency, particularly in the face of rising cybercrime.

The iCBS marks a major technological milestone, positioning the Bank of Tanzania as the first central bank in Africa to design and implement such a comprehensive system using in-house expertise. Additionally, the three-year project, completed in October last year, cost approximately TZS 10.63 billion.

The Vice President urged the Bank of Tanzania (BoT) to work closely with the Tanzania Communications Regulatory Authority (TCRA) and relevant government ministries to ensure the system and other digital payment systems are well managed and secure. BoT Governor Mr Emmanuel Tutuba stated that the system’s launch fulfils a government directive to modernise and integrate national financial systems. Minister for Communication and Information Technology Hon. Mr Jerry Silaa added that the development of the iCBS will drive progress in both the banking and financial sectors. Meanwhile, Zanzibar’s Minister of State in the President’s Office (Finance and Planning), Hon. Dr Saada Mkuya Salum, noted that the system will address numerous challenges, especially by improving banking services during this initial rollout phase.

01st Aug 2025
Source: The Citizen
TANZANIA EYES USD 11.7 BILLION FROM VALUE ADDITION IN MINERAL SECTOR
Tanzania has the potential to generate up to USD 11.7 billion in annual revenue and create over 25,000 jobs by enhancing value addition in its mineral sector.

This insight comes from a new report developed under the UK-funded Manufacturing Africa programme in collaboration with the Ministry of Minerals. The report suggests that Tanzania’s mineral sector is at a crucial juncture. With appropriate policy frameworks, targeted investments, and strategic partnerships, the country could leverage its vast reserves of strategic and critical minerals to drive economic growth and industrial development.

As Africa’s fourth-largest gold producer, contributing 2% to the global supply, Tanzania’s mining sector currently accounts for 10.1% of GDP and supports more than six million jobs. The analysis identifies 14 high-potential value addition opportunities across 11 minerals, including gold, limestone, phosphate, graphite, and rare earth elements. Gold, in particular, presents a significant immediate opportunity for value addition; refining and jewellery manufacturing could potentially yield up to USD 7.5 billion annually.

Source: Daily News
CRB HAS INSTRUCTED CONTRACTORS TO UPHOLD STANDARDS AND FULFIL CONTRACTUAL OBLIGATIONS
The Contractors Registration Board (CRB) has instructed contractors nationwide to carry out their work in line with required standards and quality, strictly adhering to the agreements stipulated in their project implementation contracts.

The CRB Registrar, Eng. Rhoben Nkori, issued the directive during the opening of a three-day training on contract management skills held in Iringa Region. The training, running from Thursday to Saturday, aims to educate local contractors and remind them of the importance of fulfilling their responsibilities and rights as outlined in their work contracts. The practice-oriented course will cover key aspects, including the basic roles of contracting parties, time and cost control, quality control, insurance and securities, defaults and contract termination, as well as claims and dispute resolution.

The training targets Managing Directors (MDs), Directors of contracting firms registered with the CRB, Architects, Engineers, Quantity Surveyors, Technicians, and other Professionals from institutions involved in construction. It has brought together more than 100 participants from 10 regions across the country, including contractors and employers.

Eng. Nkori emphasised that contracting is a legally binding business arrangement, and every contractor must possess contract management expertise to understand their rights and fulfil their obligations effectively. He noted that some contractors have been operating contrary to professional standards, stressing the need to avoid bias or personal interests and adhere to professional ethics.

Eng. Nkori further stated that while the contracting business is professional, some contractors have been operating against the principles of the profession. When entering a contract, it does not matter who you know; you must fulfil your duties properly to avoid legal consequences. Moreover, he urged contractors to take advantage of various training opportunities organised by the CRB both locally and internationally to gain practical skills that will enhance their capacity in project execution.

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