By The Respondents Reporter
The Bank of Tanzania (BoT) has taken firm steps to safeguard citizens’ money by strengthening oversight of community financial groups, a move that is now reducing long-standing cases of fraud, exploitation, and leadership abuse within VICOBA and other informal savings networks.
Speaking during a capacity-building session for business and economic journalists in Dodoma on November 20, 2025, BoT officials stressed that registering financial groups is one of the most effective ways to protect community members from financial loss.
Under the Microfinance Services Act of 2018, BoT has intensified supervision across the country, leading to a noticeable decline in common complaints such as leaders breaking group savings pots without consent, imposing harsh loan conditions, failing to repay group loans, or unlawfully accepting high-value assets like houses and vehicles as collateral.
Dickson Gama, BoT’s Manager for Microfinance Supervision, said many conflicts arise when groups operate informally and without external checks.
“When a group operates without registration, members become vulnerable to misuse of funds and unfair practices,” Gama said. “Running a VICOBA group without registration is illegal.”
He highlighted that the penalty for operating an unregistered group ranges from a fine of TSh 1 million to 10 million, imprisonment for two to five years, or both.
According to BoT, progress has been significant: by September this year, 70,800 community groups and 987 SACCOS had already been registered through the Wezesha Portal, a digital platform managed by the (PMO-RALG).
“Registration is not just paperwork—it is a citizen-protection tool that strengthens transparency and secures people’s savings,” Gama added.
BoT Senior Legal Officer, Ramadhan Myonga, reminded citizens that the central bank’s core responsibility is to protect public deposits in banks and microfinance institutions.
Through the SEMA NA BoT platform, citizens are encouraged to report fraud, hidden charges, unclear interest rates, or misleading loan information.
Myonga said BoT processes such complaints promptly to ensure no one loses money due to lack of financial knowledge.
He urged leaders of community financial groups to embrace transparency by keeping accurate records, using digital systems, and safeguarding members’ contributions.
With BoT’s tighter oversight, community financial groups are becoming safer spaces for citizens seeking to save, borrow, and grow their economic potential.