Tanzania Bans Foreign Currencies: What This Means For Kenyans
As a result, individuals, businesses, and traders are no longer allowed to quote prices or accept payments in US dollars, Kenyan shillings, or any other foreign currency.
Marvin Chege 
The Bank of Tanzania (BoT) has prohibited the use of foreign currencies in domestic transactions, mandating that all goods and services be priced and paid for exclusively in Tanzanian Shillings (TZS).
As a result, individuals, businesses, and traders are no longer allowed to quote prices or accept payments in US dollars, Kenyan shillings, or any other foreign currency.
"The Bank of Tanzania wishes to inform the public that, in accordance with the provisions of Section 26 of the Bank of Tanzania Act, 2006, the Government has issued the Regulations on the Use of Foreign Currency, 2025. The regulations were published in the Government Gazette No. 198, dated 28th March 2025," BoT announced in a statement on Friday, May 2.
The Bank of Tanzania building. /WEEKLY VISION
"Under these Regulations, pricing and payment for all goods and services within the country must be in Tanzanian Shillings. Therefore, it is an offence to quote, advertise, or indicate prices in foreign currency, to compel, facilitate, or accept payment in foreign currency, or to refuse payment made in Tanzanian Shillings."
The Regulations also specify transactions that are permitted to be conducted in foreign currency. Furthermore, the Regulations have set a time limit on contracts executed in foreign currency and prohibit entering into or renewing contracts that require payments in foreign currency, effective from March 28, 2025.
Foreigners, such as tourists, must convert their foreign currencies at commercial banks or Bureau de Change outlets in Tanzania. They can also continue to pay using bank cards or digital payment platforms.
However, the regulations outline certain exceptions where foreign currency use is still allowed. These include government payments to regional bodies, transactions involving embassies and international organisations, foreign currency loans from local banks, and purchases at duty-free stores.
At the same time, all foreigners are urged to adhere to these regulations, while Tanzanian citizens are encouraged to report any breaches of these rules to the Bank.
"The Bank of Tanzania urges the public to report any violations of these Regulations to the Bank through fx.regulations@bot.go.tz, the Financial Intelligence Unit (FIU), the Police Force, or any other relevant law enforcement authority for appropriate action," added the statement.
Why This Matters to Kenyans
Kenyan traders operating in Tanzania are now required to convert their funds into Tanzanian shillings before carrying out any transactions.
Visitors from Kenya must also exchange their money at banks or forex bureaus before making purchases, while Kenyan businesses will need to revise their pricing and contracts to align with the new rules.
These changes are expected to hit traders and companies the hardest, as they could incur losses from exchange rate fluctuations when converting Kenyan shillings to Tanzanian shillings.
Currently, 1 Tanzanian shilling equates to 0.048 Kenyan shillings, while 1 Kenyan shilling equals 20.83 Tanzanian shillings.
