Mobile money withdrawal charges in Tanzania (Kutoa Pesa) 2026
Withdrawing mobile money in Tanzania (kutoa pesa) costs the operator's cash-out fee PLUS the government withdrawal levy (the "tozo"), banded by amount from TZS 10 up to a maximum of TZS 2,000. The levy applies only when you cash out at a mobile-money agent — sending money carries no levy. It was introduced in 2021 and revised repeatedly since; the current schedule is the one applied in the operators' own published tariffs (M-Pesa, effective 1 July 2025). Separately, 10% excise and 18% VAT compound on the operator's base fee (×1.298) — the tariff figure the operator publishes is already tax-inclusive, and the levy is added on top of it.
The all-in cost stack
Tanzania layers two consumption taxes on top of every mobile-money operator fee: a 10% excise duty (Excise Tax Act) and the standard 18% VAT. Both apply to the operator's published fee, not to the transaction amount. The compounded effect of stacking ×(1.10)×(1.18) on the operator fee is a ×1.298 multiplier — so the all-in cost is ~30% above the displayed operator fee.
Reproducing a row: M-Pesa cash-out on TSh 30,000 sits in the 10,000-49,999 band at TSh 1,450 operator fee. Excise + VAT: 1,450 × 1.298 = ~TSh 1,882. The all-in cost as % of transaction amount is 1,882 / 30,000 = ~6.3%. Larger amounts move the effective % down (operator bands are fixed-flat per band, not pure percentage).
Per-operator withdrawal bands
The richest documented withdraw schedule on the site is M-Pesa Vodacom Tanzania. Mixx by Yas (ex Tigo Pesa) and Airtel Money use comparable banded schedules. The numeric bands live in the comparison table on the Tanzania country hub and the per-amount pages (see See also). The all-in cost on each band = operator_band × 1.298.
Cheaper-than-withdraw: pay the merchant directly
If the cash you're withdrawing is destined to pay a merchant or a bill, Lipa kwa Simu / merchant pay is typically zero-cost for the customer — the operator fee + excise + VAT layer disappears entirely. The merchant pays a small acceptance fee on their side, but it doesn't reach you.
All values verified June 2026. Operator tariffs cross-checked against Vodacom Tanzania, Yas / Mixx by Yas, Airtel Tanzania and Halotel published sources; review cadence is quarterly.