The budget proposals for the 2026/27 financial year, presented in Parliament on June 11, 2026, have introduced several legislative and regulatory measures aimed at accelerating the adoption of a cash-lite economy in Tanzania.
The proposals targeted several large cash-based businesses that continue to operate mostly on a cash basis, as well as businesses and services that handle high transaction volumes. To address this, the government has proposed the mandatory use of bank accounts and digital payment systems for a wide range of transactions.
One of the key areas targeted is public services provided by both government and private entities, where payments would be required to be made through digital channels.
These include fees, levies, and fares related to Bus Rapid Transit (BRT) services, ferries, bridges, long-distance bus transport, ride-hailing services, parking facilities, air transport, and railway services. The proposal also covers transactions conducted in shopping malls, gyms, cinemas, filling stations, motor vehicle dealerships, conference and event venues, sports arenas, and international trade exhibitions. In addition, all fees and contributions at every level of education would be subject to mandatory digital payment requirements.
READ: Too Expensive to Go Cashless: The Cost of Digital Payments in Tanzania
The proposed measures also cover payments for accommodation, food, and beverages in hotels, restaurants, and cafes, as well as all tourism-related services and transactions and transactions in the real estate sector. In agriculture, the government is proposing mandatory digital payments for activities conducted by cooperative unions and Agricultural Marketing Cooperative Societies (AMCOS) dealing with strategic crops.
Enforcement
The government is proposing mandatory verification of existence of bank accounts before issuing licenses to certain categories of businesses.
“The Government emphasizes that Institutions responsible for the issuance of permits to introduce the mandatory conditions of having a bank account for granting licences to business operators engaged in mining, livestock, crops, timber, and fisheries, to ensure transactions are made through the respective accounts,” the Ministry of Finance proposed.
In addition, the government has introduced a requirement for proof of digital payment in major asset transfers.
“From 1st July 2026, the Government will require proof of digital payment to serve as a mandatory reference for the approval of applications relating to the transfer of assets, including land, buildings, and motor vehicles,” the budget statement reads.
READ: Cosmetic Digitisation? How Cash and Discretion Undermine Tanzania’s Revenue Systems
The proposals come at a time when the adoption of digital payments is increasing across the country, although transaction costs remain a challenge. According to the 2025 National Payment System report, there has been widespread adoption of merchant Quick Response Code (TANQR) and merchant “Pay Bill” solutions, commonly known as Lipa Namba.
The report notes that in 2025, the number of merchants accepting digital payments increased to 2,789,455, up from 1,327,803 in 2024. During the same period, a total of 2.30 billion payment-to-business transactions worth TZS 37.52 trillion were processed.
The budget proposals are expected to be discussed in a one-week period by the members of parliament before being passed.
