The government has directed the Bank of Tanzania (BoT) to step up regulation and supervision of the financial sector to shield citizens from the risks of borrowing from informal and unregulated lenders, which have increasingly exposed borrowers to exploitative terms and the loss of property.
The directive was issued by the Minister for Finance, Ambassador Khamis Mussa Omar (MP), through a speech delivered on his behalf by Deputy Minister for Finance Laurent Deogratius Luswetula at the opening of the National Financial Services Week on January 21, 2026, at the Usagara Grounds in Tanga.
The minister said many citizens continue to suffer financial distress after securing loans from informal institutions, underscoring the need for the public to verify the legitimacy of lenders before entering into borrowing arrangements.
He urged borrowers to read and understand loan agreements carefully, warning that signing contracts without fully grasping the terms and conditions often results in severe financial losses.
He said the government remains committed to strengthening consumer protection in the financial sector, noting that enhanced oversight by BoT is critical in curbing abusive lending practices and promoting responsible borrowing.
Meanwhile, BoT Governor Emmanuel Tutuba, in remarks delivered on his behalf by the Director of Welfare and Financial Inclusion Services, Kennedy Komba, said the central bank has rolled out and strengthened several systems aimed at improving transparency, consumer protection and access to financial services.
He said the initiatives focus on addressing complaints from users of financial services and ensuring borrowers have clear information on charges, fees, interest rates and loan calculation methods.
These include complaint submission and management systems (SEMA and BoT platforms), a price comparison tool, a loan cost calculator and a participatory supervisory framework for Tier II microfinance service providers.
According to BoT, the measures have enhanced transparency, efficiency and service quality across the sector, while ensuring compliance with existing laws and regulations.
The National Financial Services Week, which runs from January 19 to 26, 2026, aims to raise public awareness on financial literacy and promote the use of formal financial services as a driver of inclusive growth and national development.