Kagera Regional Women’s MP
Oliver Semuguruka. Photo: Courtesy
By Mutayoba Arbogast
Bukoba – A growing wave of
predatory microloans with crippling interest rates, locally known as “mikopo
kausha damu” (blood-draining loans), is leaving Tanzanian families in financial
ruin. Women, in particular, are bearing the brunt, with many losing their household
possessions and livelihoods due to impossible repayment terms.
In a harrowing case from Mtwivia village in Iringa, a
woman fled her home to escape the burden of an unpaid loan, leaving behind her
husband and two young children.
Her husband, Athanas Muhagila, shared the devastating
story. Initially, the family had planned to borrow a manageable Sh 400,000 to
500,000, with weekly repayments of Sh 15,000.
However, when his wife approached the lender, she was
convinced to take a Sh 1.2 million loan with a weekly repayment of Sh 38,000—an
amount they could not afford.
“We couldn’t keep up,” Muhagila said. “They’ve already
taken our TV, music system, and other household items. Only our couch and
cooking pots remain. When I begged them for mercy, they told me the debt would
only die with her.”
Muhagila, who supports his family through small
businesses like stone splitting, now struggles to feed his children, often
managing just one meal a day.
Hearing of the family’s plight, Kagera Regional
Women’s MP Oliver Semuguruka stepped in to help. Moved by their suffering, she
paid off the remaining Sh 513,900 loan directly to the lender, providing the
family with a lifeline.
“As a mother and leader, I couldn’t stand by and watch
this family suffer,” Semuguruka said. She emphasized the dangers of unplanned
borrowing and urged women to explore safer alternatives, such as the
government-backed 10% loan program, which provides interest-free loans to
women, youth, and people with disabilities.
The 10% loan initiative, expanded in 2018 under the
Local Government Financial Act, offers marginalized groups a sustainable path
to financial empowerment without the crushing burden of high-interest
repayments.
Semuguruka stressed the importance of financial
education, warning that impulsive borrowing can lead to family breakdowns.
“Without proper planning, loans can destroy lives. Women must seek sustainable
options that foster growth without putting their families at risk.”
Her intervention not only saved Muhagila’s family from
further devastation but also highlighted the urgent need for responsible
lending practices and greater financial literacy to protect vulnerable
communities across Tanzania.
