Transacting in foreign currency 

I have been leasing apartments in Dar es Salaam for nearly fifteen years. Most of my tenants are expatriates working with embassies, NGOs, or multinational companies. For convenience, I have always quoted rent in US dollars, and tenants paid me directly in USD. This was sensible because their salaries are in foreign currency, and it protected me from fluctuations in the Tanzanian Shilling. However, my broker informed me that after March 2025, when the Foreign Exchange Use Regulations were published, quoting rent in USD is no longer permitted. I don’t want to break the law. Can landlords like me still lease properties in USD when dealing with expatriates, or must all rental agreements be strictly in Tanzanian Shillings? Please guide me.

NB, Dar es Salaam

This is a good question. The Finance Act of 2024 amended the Bank of Tanzania Act, Cap. 197 [R.E. 2023], by adding section 26(2), which makes it an offence for any person to transact in any currency other than the legal tender, which is the Tanzanian Shilling. Under the Foreign Exchange Use Regulations, GN. No. 198 of 2025 (Regulations), all transactions conducted within Tanzania must be quoted, advertised, and paid in Tanzanian Shillings (TZS). The Regulations define ‘transaction’ broadly to include quoting, advertising, publishing, pricing, paying, or receiving payment for goods and services. Leasing houses or apartments falls squarely within this definition.

Therefore, landlords cannot legally quote rent in USD or receive payment in USD for leases within Tanzania. The only exceptions are those listed in the Schedule to the Regulations, such as transactions involving embassies, international organisations, foreign currency loans, or duty‑free shops. Unless the lease is directly with an embassy or international organisation covered by the Schedule, rent must be quoted and paid in Tanzanian Shillings. Further, contracts entered into in foreign currency before the Regulations came into effect must be amended within one year to comply. Options you have are entering into short term leases and reenter jnto new leases with adjusted rent based on your rate of returns; or enter into a lease with a periodic rent review clause. Non‑compliance could expose landlords to legal consequences including fines.