By Business Insider Correspondent, Dodoma
The government, through the Bank of Tanzania (BoT), has taken various measures to ensure that mobile-based financial transaction services are accessible at affordable costs.
These include reducing electronic transaction charges, strengthening payment system infrastructure, and establishing a supportive policy and regulatory environment to promote the use of digital financial services and lower costs for citizens.
This was stated in Parliament in Dodoma by the Minister of Finance, Khamis Mussa Omar, while responding to a question from Kinondoni MP Tarimba Gulam Abbas, who sought clarification on why the government has not set indicative pricing for mobile money transaction fees.
The minister outlined measures implemented between 2024 and 2025. In 2024, the Bank of Tanzania introduced a cap on transaction fees under the instant payment system and the Tanzania Automated Clearing House (TACH), limiting the maximum cost per transaction to TSh 2,000.
In 2025, the central bank further reduced charges for digital money transfers, including transfers between mobile wallets and bank accounts via the Tanzania Instant Payment System (TIPS).
He added that transaction costs have been capped at TSh 5,000 for transfers exceeding TSh 500,000, while tiered caps apply to smaller transactions.
The government has also continued licensing payment service providers to enhance competition within the electronic payments ecosystem. As of March 2026, a total of 113 providers had been licensed. Furthermore, the government, through the Bank of Tanzania, will continue working with payment service providers to review transaction costs and implement further reductions where feasible, without compromising system stability and security.
