The government is taking firm measures to protect citizens from high-interest loans, Deputy Minister of Finance Eng. Mshamu Ali Munde (MP) has said. Key actions include tighter supervision of financial institutions through the Bank of Tanzania (BoT).
Eng. Munde made the remarks in Parliament while responding to Kigamboni MP Nyakisa Sanga, who asked how the government is ensuring that workers are not overburdened by excessive loan interest rates.
He said the government, in partnership with BoT, continues to monitor banks and other financial institutions to ensure they follow laws, regulations, and lending guidelines.
On when Tanzanian workers could expect lower loan rates, potentially as low as 7–8 percent, Eng. Munde explained that interest rates are determined by market forces.
“The government cannot direct financial institutions to set fixed rates for any group of borrowers without contradicting free-market principles,” he said.
He added that banks have the freedom to offer lower rates if they consider it viable. Employees, individually or through their employers, can also negotiate with banks for more favorable loan terms.
Eng. Munde assured that the government will continue to improve the financial environment, making loans more affordable and accessible while protecting the integrity of the country’s free-market system.
