On 30th June 2026, the Minister for Finance published Government Notice No. 158C, introducing the Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026. The Order is made under section 13(2) of the Electronic Transactions Act (Cap. 442) and came into operation on 1st July 2026. Because the word mandatory appears in the title, many members of the public have asked a simple question. Has cash been banned in Tanzania? This article explains what the Order actually says, in plain language, so that members of the public understand their rights and obligations.

What the Order Actually Requires

The Order does not abolish cash. It does not make cash illegal, and it does not stop the Tanzanian shilling from being legal tender. What the Order does is narrower and more specific. It requires that payments made or received for a defined list of transactions, set out in a Schedule to the Order, must be made through an electronic payment channel rather than by handing over physical cash.

In other words, the requirement applies only to the transactions named in the Schedule. It is not a general rule covering every purchase, sale or payment made anywhere in the country.

What Counts as an Electronic Payment

The Order defines electronic means broadly. It includes mobile money, bank transfer, electronic funds transfer, payment cards, electronic wallets, point of sale (POS) devices, internet banking, mobile banking and any Government electronic payment system. This means a business or institution has several options for accepting electronic payment. It is not limited to one particular platform or bank.

Which Transactions Must Now Be Paid Electronically

The Schedule to the Order lists the specific categories of payment that must go through electronic means. These are:

1. Fees, charges, levies, tolls or fares for bus rapid transit, ferries, bridges, long distance passenger buses, online taxi services, air transport, railway transport and parking services.

2. Payment for goods or services in shopping malls, gymnasiums, cinemas, filling stations, conference and event venues, sports arenas, and international trade exhibitions such as Saba Saba and Nane Nane.

3. Fees and contributions for educational services in pre-primary, primary and secondary schools, tertiary institutions and universities.

4. Contributions for educational services in tertiary institutions and universities.

5. Payment for accommodation, food and beverages in hotels, restaurants and cafes.

6. Payment relating to tourism related services.

7. Payment relating to renting, sale or purchase of a building, plot or farm.

8. Payment for motor vehicle sale or purchase.

9. Payment relating to agricultural activities undertaken through cooperative unions and Agricultural Marketing Cooperative Societies (AMCOS) in respect of strategic crops, including cotton, cashew nuts, coffee, tea, sisal and tobacco, as well as agricultural inputs and pesticides.

So, Is Cash Banned?

No. Cash remains legal tender in Tanzania and remains usable for the vast majority of everyday transactions that fall outside the nine categories listed above. A person buying vegetables at a local market, paying a neighbour for casual labour, or making many other ordinary purchases not listed in the Schedule is not affected by this Order.

What has changed is that for the specific transactions listed in the Schedule, a business or institution is now legally required to accept and process payment electronically, and a customer paying for those specific transactions is required to pay electronically rather than in cash.

Transitional Arrangements

The Order recognises that businesses and institutions need time to adjust. Anyone who, immediately before 1st July 2026, was already receiving payments for a transaction now listed in the Schedule has six months from that date to put in place proper electronic payment means. This gives affected businesses until around the end of December 2026 to arrange mobile money services, bank transfer facilities, POS devices or another qualifying electronic channel.

The Order also makes clear that it does not affect any arrangement or contract relating to a transaction that was already made before the Order came into force. It applies going forward, not retroactively.

What This Means in Practice

For businesses and institutions in the listed sectors, such as schools, hotels, transport operators, shopping malls, cinemas, fuel stations, land and property dealers, motor vehicle dealers, and agricultural cooperative unions, action is required. They should set up at least one recognised electronic payment channel before the six month transitional period ends, keep proof of electronic payments received, and inform their customers of the accepted electronic payment options.

For members of the public, no special action is needed except being prepared to pay through mobile money, a bank card, a bank transfer, or another electronic channel when paying for any of the nine categories of transactions listed above. Cash remains available for everything else.

What This Means for Real Estate Transactions at TRA and the Ministry of Lands

Real estate is directly covered by this Order. Item 7 of the Schedule lists payment relating to the renting, sale or purchase of a building, plot or farm as a transaction that must be paid through electronic means. Government statements accompanying the 2026/27 budget go a step further for land and property specifically. Presenting the budget to Parliament in June 2026, the Minister for Finance announced that proof of digital payment will be mandatory for the transfer of assets such as land, buildings and motor vehicles from 1st July 2026, and that public institutions, including the Ministry of Lands, the Tanzania Revenue Authority (TRA) and the Business Registrations and Licensing Agency (BRELA), will be required to verify digital payment records before approving ownership transfers.

In practical terms, this means TRA and the Ministry of Lands are expected to ask for evidence of an electronic payment, such as a bank transfer confirmation, TISS advice, a control number payment slip, or a mobile money statement, as part of processing a land or property transaction. This includes stamp duty assessment and capital gains tax clearance handled by TRA, and registration of the transfer or issuance of a new certificate of title handled by the Ministry of Lands and the Registrar of Titles.

For a plot, building or farm sold or purchased for cash, this creates a real practical risk. If a buyer and seller settle the purchase price in physical cash rather than through a traceable electronic channel, they may find TRA or the Ministry of Lands unwilling to process stamp duty, tax clearance, or the change of ownership, because there is no digital payment record for the institution to verify. Parties who have already exchanged cash may need to route at least part of the consideration through a bank or mobile money transaction, or obtain other acceptable proof, before the transfer can be registered.

The Order itself states that it does not affect an arrangement or contract relating to a transaction made before it came into force on 1st July 2026. This suggests that land transactions completed and already registered before that date should not be reopened. However, for any sale, purchase or transfer being processed, or still pending registration, on or after 1st July 2026, the safer approach is to use and retain proof of an electronic payment channel for the full purchase price.

Because the detailed procedures that TRA and the Ministry of Lands will apply in practice are set by those institutions and may be refined over time, anyone with a pending or upcoming land, building or farm transaction should confirm the current documentation requirements directly with the relevant Ministry of Lands office, the Registrar of Titles, or TRA, or seek advice from a lawyer (www.lysonlaw.co.tz), before relying solely on cash for a real estate deal.

Summary

For land, building and farm transactions specifically, buyers and sellers should be aware that TRA and the Ministry of Lands are expected to check for proof of electronic payment before approving stamp duty, tax clearance and transfer registration, so cash only deals may face delays or refusal from 1st July 2026 onward.

Members of the public and businesses affected by the listed transactions are encouraged to prepare for the new requirement ahead of the end of the transitional period, and to seek guidance from the relevant authorities where clarification is needed.