Directors of digital lending companies Kisasi Finance and Awallet Africa Limited, operators of Loan Plus and Swift Loan platforms, have been given 14 days to pay TZS 100 million in damages for defamation and spreading false information online.
The companies, among 69 financial institutions suspended by the Bank of Tanzania (BOT) on November 21, 2024, for operating without proper licensing and failing to adhere to transparency regulations on fees, interest rates, debt collection, and data privacy, have allegedly continued their operations.
Speaking to reporters, John Shirima, an attorney with J&J Shirima Associates & Co., representing a group of 10 lawyers defending the complainant Mussa Juma, said the directors of Kisasi Finance and Awallet Africa Limited were issued a 14-day notice starting December 13, 2024. The notice demands payment of TZS 100 million in damages and a written apology.
Shirima revealed that the notice, also copied to BOT and the police, refers to a criminal case (ARS/RB/12589/2024) involving the use of obscene language online. Employees of the accused firms allegedly circulated defamatory messages on social media, falsely claiming that Mussa Juma’s mother had passed away and soliciting donations.
According to the lawyer, the accused employees used phone numbers 0774652645, 0755365471, and 0617512622 to issue threats and spread defamatory information online, pressuring Juma to make payments. They continued this behavior despite being informed that no debt was owed.
On December 12, 2024, the manager of Loan Plus, using number 0713694907, disseminated messages apologizing for spreading false information about Juma. However, the company’s employees persisted in their activities.
Hamis Mayomba, the head of the Legal and Human Rights Center (LHRC) in the Arusha region, criticized the companies for violating laws governing online conduct, privacy protection, and BOT regulations.
An employee of Loan Plus, Jamira Chakachaka, responded defiantly to the allegations, stating that the firm would continue its operations and spread defamatory information unless payments were made. She claimed, “Go wherever you want. Don’t think these are small companies. We have connections with government officials and even BOT. We’re still operational despite their directives, and even TCRA can’t stop us.”
Arusha Regional Police Commander Justine Masejo confirmed receiving reports about the case and defamation claims. He stated that investigations are underway, with officers deployed to Dar es Salaam to track down the suspects.
Digital lending companies have faced widespread criticism from citizens for legal violations, fraud, and online harassment. Parliament has previously urged the government to take action against these firms.
Recently, Finance Minister Mwigulu Nchemba and BOT Governor Emmanuel Tutuba condemned the actions of online lending institutions, with some being suspended. Despite these sanctions and directives from the Tanzania Communications Regulatory Authority (TCRA) to shut down their online platforms, these companies continue to operate.