Tanzania: Four years after mandatory digital payments, 95% of travelers pay in cash

Four years after the mandatory electronic payment policy for Tanzanian public transport came into effect, cash still dominates by a wide margin. Out of 62.18 million travelers recorded during this period, 59.27 million paid in cash, or 95.3%, compared to 2.91 million via digital means, reports the daily newspaper Tanzania Daily News in its September 25, 2026 edition, based on data from the Land Transport Regulatory Authority (LATRA).

The gap is also evident in terms of value. Revenue collected in cash reached 1.99 trillion Tanzanian shillings, compared to 144.28 billion for electronic transactions, which account for 6.8% of total ticket sales. The digital share in terms of value exceeds its share in the number of trips, as digital payments are concentrated on more expensive fares.

A legal obligation, a slow practice

The electronic transactions law mandates digital payment for a wide range of services: bus rapid transit, long-distance coaches, ferries, and ride-booking platforms. The legal framework exists; it is its adoption by operators and users that is lagging.

Habibu Suluo, Director General of LATRA, states that transport operators and the state are gradually realizing the benefits of electronic payment in terms of transparency, according to the same newspaper. The word is significant: traceability is primarily of interest to the regulator and the tax authorities, rather than the driver paid based on daily receipts or the traveler without a bank account.

A sector experiencing explosive growth

The contrast is striking when compared to the growth of the vehicle fleet. Between the 2021/2022 and 2025/2026 fiscal years, commercial vehicle licenses jumped by 146.1%, rising from 239,953 to 590,468, again according to LATRA. The number of buses connected to the vehicle tracking system increased from 5,979 to 14,743.

In other words, Tanzania has succeeded in equipping and registering its fleet much faster than it has converted its passengers. This case illustrates a reality known to several countries on the continent: digital technology is gaining ground in money transfers between individuals, as shown by the success of mobile money in East Africa, but it still struggles with local payments, where cash remains fast, free for the user, and anonymous.

The figures published by LATRA therefore raise a question of method rather than technology: a legal obligation is not enough to change a payment habit as long as the alternative is not simpler and cheaper than physical coins.