Street vending constitutes an element of the informal urban economy. It is a peculiar practice serving a huge proportion of the low-income population in rapidly urbanising cities of the Global South, especially in the Tanzanian urban economy. Although street vending practice continues to witness tremendous growth over decades in terms of employment generation, it is barely considered in spatial planning practices as an important element that merits designated urban spaces. This paper analyses possibilities for formally integrating street vendors in urban economic spaces. The study used quantitative and qualitative methods, drawing data from street vendors, city officials, and key informants. The results showed that street vendors were susceptible to forced eviction by urban authorities due to a lack of formally designated spaces for petty vending. While the practice of vending holds the potential to contribute to the local economy’s development, street traders are barely considered in street designs. The findings suggest a need for the creation of flexible and more intensive uses of urban public spaces through participatory, inclusive urban design. Organising street vendors into street vendor groups or associations can facilitate the coordination of strategies across different vending groups to achieve sectoral governance and formal recognition in urban planning.