Despite a four-year push for digital payments in Tanzania's public transport sector, cash remains the dominant form of payment. According to official data from the Land Transport Regulatory Authority (LATRA), electronic transactions accounted for only 6.8% of fares collected over the past four years. A total of 62.18 million passengers were recorded through online ticketing systems during this period.
The majority of passengers, 59.27 million or 95.3%, paid their fares in cash, while only 2.91 million passengers, or 4.7%, used digital payment channels. In monetary terms, cash payments accounted for 1.99 trillion Tanzanian shillings out of the 2.13 trillion shillings collected, while electronic payments amounted to 144.28 billion shillings. This highlights the significant gap between the policy drive towards digital payments and their adoption across the transport sector.
The Electronic Transactions Act requires electronic transactions in several services, including bus rapid transit services, long distance buses, ferries, and ride-hailing platforms. However, LATRA Director General Habibu Suluo acknowledged the challenges of increasing digital adoption, but noted that operators and the government were gradually recognising the transparency benefits of electronic payment systems.
Beyond digital payments, LATRA reported significant growth in the regulated transport sector during the sixth phase government's tenure. Commercial vehicle licences increased by 146.1% from 239,953 in 2021/22 to 590,468 in 2025/26. The number of buses connected to LATRA's Vehicle Tracking System also rose from 5,979 to 14,743 during the same period.
With the rainy season approaching, Mr Suluo urged transport stakeholders to prepare for anticipated El Niño rains and ensure vehicles were properly maintained before starting journeys. He advised vehicle owners to pay particular attention to braking systems, tyres, lights, windscreens, and windscreen wipers to ensure road safety.
Mr Suluo also warned drivers to exercise caution during the rainy season, avoiding flooded areas and reducing speed and increasing following distances during rain, fog, and other periods of poor visibility. He advised passengers to check weather forecasts and road-condition updates before travelling and avoid unnecessary journeys during heavy rains.
LATRA generated 2.13 trillion shillings from land transport's ticket sales between 2022/23 and 2025/26 financial years. The authority's efforts to promote digital payments and improve road safety are ongoing, with a focus on increasing transparency and efficiency in the transport sector.
Key points
- Cash payments account for 93.2% of fares collected in Tanzania's public transport sector over the past four years.
- Electronic transactions accounted for only 6.8% of fares collected over the past four years.
- Commercial vehicle licences increased by 146.1% from 239,953 in 2021/22 to 590,468 in 2025/26.
