Zanzibar collects Sh16 billion from mandatory visitor insurance, slashes fee for EAC nationals

Unguja. The Revolutionary Government of Zanzibar has collected over Sh16.1 billion from a mandatory insurance policy introduced for all incoming tourists, with officials announcing a fee reduction for East African Community (EAC) and Southern African Development Community (SADC) nationals following a regional backlash.

The insurance scheme, which came into effect on October 1, 2024, requires every visitor to pay $44 (approx. Sh118,781) upon entry. 

According to Deputy Minister of Finance and Planning, Mr Juma Makungu Juma, more than $6 million has been generated under the programme within five months.

Speaking in the House of Representatives, Mr Makungu revealed that the policy aims to cushion visitors against various emergencies—including medical issues, accidents, and repatriation needs—during their stay in Zanzibar or mainland Tanzania, valid for up to 92 days.

The issue was raised by Mtambwe Representative, Dr Mohamed Ali Suleiman, who questioned both the high fee and its impact on regional integration. Dr Suleiman noted that the charges had sparked widespread discontent among travellers from EAC member states, which prioritize seamless movement and cooperation among citizens.

Responding, Mr Makungu acknowledged the concerns and said the government had acted swiftly to review the policy. “We have revised the amount for EAC and SADC citizens to $22 (approx. Sh59,390) in recognition of the strong socio-economic and political ties we share,” he said.

The reduction aims to promote goodwill within regional blocs while still maintaining the intended benefits of the insurance scheme.

Visitor inflow and insurance uptake

From October 2024 to February 2025, Zanzibar recorded the following number of EAC visitors purchasing the mandatory cover:October: 2,372, November: 2,609, December: 6,743, January: 2,494,  February: 2,389.

While these figures highlight consistent tourist interest, Mr Makungu clarified that there is no formal EAC-level agreement on the insurance requirement—it remains a domestic policy under Zanzibar’s jurisdiction.

Where does the money go

Finance and Planning Minister Dr Saada Mkuya explained that the funds are earmarked for key services, including emergency medical care, transport of deceased persons, and flight rebooking support for distressed travellers.

However, she declined to provide a breakdown of expenditures to date, citing the need for a detailed audit. “We are still consolidating usage reports and will present the full picture in due course,” she said.

Dr Mkuya also acknowledged teething challenges in implementing the policy. “Some people are still resistant, including government officials,” she noted, citing instances where VIPs refused to present identification at ports of entry.

“Even ministers must comply. Officers at airports and seaports are doing their jobs—verifying documents. Let’s all support this policy rather than question its legitimacy,” she added.

Authorities are urging continued stakeholder engagement to improve compliance and transparency, especially as the insurance programme becomes a permanent fixture in Zanzibar’s visitor management framework.