Tanzania’s land transport regulator is pushing for a faster shift to electronic fare payments after new data showed passengers paid about TZS2.13 trillion in bus fares over the four-year period to June 2026, with nearly TZS1.9 trillion still paid in cash.
The figures highlight the scale of Tanzania’s largely cash-based public transport market and the potential impact of moving more transactions onto electronic platforms.
The Land Transport Regulatory Authority (LATRA) said transport operators must begin preparing for wider use of electronic payments for fares, fees and other charges as the sector adopts more technology-driven services.
LATRA Director General Habib Suluo said the transition was necessary to keep transport operations in step with investments in roads and other infrastructure.
“Hardware is ready, but what about software?” Mr Suluo said on Thursday, September 24, during a briefing with editors and journalists in Dar es Salaam organised by the Treasury Registrar’s Office.
He said better roads and transport infrastructure alone would not deliver efficient services unless they were supported by effective information technology systems and modern operating procedures.
The push towards electronic payments will affect several areas of transport, including intercity buses, urban public transport, ferries and ride-hailing services.
For passengers, the change could reduce reliance on cash when paying fares while making transactions easier to track.
LATRA's data shows that between the 2022/23 financial year and 2025/26, about 62.2 million passengers travelled by bus, spending approximately TZS2.13 trillion on fares.
Of that amount, about TZS1.9 trillion was paid in cash despite the availability of electronic payment systems.
Mr Suluo urged transport operators to start preparing their systems to comply with the requirements and ensure the transition does not disrupt services to passengers.
The regulator has also expanded digital ticketing, allowing passengers to book journeys without physically visiting bus stations.
LATRA introduced its online ticketing service in 2022, enabling passengers to book bus and train journeys through digital platforms, including the Safari Tiketi App.
By June 2026, 14 transport operators had connected their systems to LATRA's platform.
The system allows passengers to select travel times and bus types and make payments online, while those who prefer physical transactions can continue paying through agents or transport company offices.
The development comes as demand for transport services continues to expand across the country.
LATRA said the number of licences issued for passenger, goods and hired vehicles rose from 239,953 in 2021/22 to 590,468 in 2025/26. That represents an increase of 350,515 licences in five years.
Mr Suluo attributed the growth partly to changing travel patterns and the increasing role of motorcycles and three-wheelers in providing transport services.
The regulator said hired vehicles now include bodaboda, bajaji, taxis, school buses, tourist vehicles and specialised services such as airport transfers.
The growing number of such vehicles has expanded transport options for passengers, particularly in areas where conventional public transport may not adequately meet demand.
But the expansion also places greater responsibility on regulators and operators to maintain safety standards. LATRA said it was strengthening driver certification and monitoring systems as part of that effort.
Between 2022/23 and 2025/26, 15,547 drivers registered and sat LATRA certification examinations through its Driver Testing System.Only 8,642, or about 56 percent, passed and were certified.
For night bus services, LATRA has introduced an identification device known as an i-button, alongside Vehicle Tracking Systems (VTS), to monitor drivers and vehicle movements.The systems are intended to strengthen oversight of drivers and improve road safety.
LATRA has also increased training for vehicle attendants, an area that directly affects passengers' experience during journeys.
The authority developed a one-week training programme in partnership with the National Institute of Transport (NIT), College of Business Education (CBE), Vocational Education and Training Authority (VETA) and Arusha Technical College.
The programme covers transport laws and regulations as well as passenger handling and customer service.It started in 2023/24 with 656 trainees and had reached 7,216 attendants by June 2026.
Successful trainees are required to apply for registration through LATRA's Registration and Regulatory Information Management System (RRIMS).
LATRA said it had registered 22 ride-hailing companies, which collectively connect passengers with 23,532 vehicles holding valid licences.
The authority also issued certificates to 100 licensing agents between 2023/24 and 2025/26.
The agents included 69 companies, seven cooperative societies, 23 public institutions and one individual.
LATRA said the agents collected TZS7.9 billion in licensing fees and received TZS2 billion in commissions.
Mr Suluo said the importance of transport extended beyond moving people and goods because passenger traffic also generates demand for hotels, restaurants, taxis and other businesses.
As the country heads into the rainy season, LATRA has urged drivers, vehicle owners, passengers and other transport stakeholders to take precautions before and during journeys.
Mr Suluo urged passengers to follow official weather information and pay attention to warnings about road conditions and transport infrastructure.
The authority's push comes as Tanzania prepares to hold its second Sustainable Land Transport Week from November 24 to 26 at Mlimani City in Dar es Salaam.
The event, expected to bring together about 2,000 participants, will focus on safe, environmentally friendly and inclusive transport.
The theme is “Accelerating Sustainable Transport: Safe, Environmentally Friendly and Inclusive Transport.”
For passengers, however, the immediate challenge is how quickly the sector can translate the growing use of technology into simpler payments, reliable ticketing, safer journeys and better customer service.
With nearly TZS1.9 trillion of bus fares still being paid in cash, the scale of that transition is significant for both transport operators and millions of passengers who depend on public transport every year.