Prime Minister questions sale of TZS6m house to recover TZS1.2m loan, directs Itoni–Lusitu contractor to resume work
By Our Reporter
Ludewa. Prime Minister Mwigulu Nchemba has called for a review of laws governing property auctions amid concerns that borrowers risk losing assets worth millions of shillings over relatively small outstanding debts.
The Prime Minister questioned the fairness of auctioning high-value properties to recover small loan balances, particularly where borrowers have already repaid a substantial portion of their loans.
He said legal experts should examine possible loopholes that could allow lenders, auctioneers or other parties to exploit existing procedures at the expense of property owners.
“If there are loopholes in the law, we must review them,” he said.
Dr Mwigulu made the remarks on Friday, November 13, 2026, during a public meeting in Ludewa District, Njombe Region, where he heard complaints from residents.
The issue emerged after a resident complained that his unfinished house had been scheduled for auction over a debt of TZS1.2 million.
A council valuer told the Prime Minister that the property was worth Sh6 million, prompting him to question whether the proposed recovery process was proportionate to the outstanding debt.
“Are you selling a house worth Sh6 million to recover a debt of TZS1.2 million?” he asked.
The Prime Minister also called for scrutiny of fees charged by auctioneers and brokers, suggesting that the costs associated with property auctions needed closer examination.
He pledged to pay the resident's TZS1.2 million debt, but his wider directive raised questions about the safeguards available to borrowers facing the loss of valuable assets over relatively small loan balances.
In a separate intervention, Dr Mwigulu directed the contractor handling the Itoni–Lusitu road to return to the construction site and resume work by November 17, 2026, following the Government's settlement of outstanding payments.
He said residents were more concerned about progress on the road than the presence of construction equipment at the site.
“These residents are not interested in seeing graders and machinery. They want to see construction work progressing,” he said.
The Prime Minister also directed the Ministry of Works to complete technical preparations for a road linking the concrete-paved section and Ludewa District headquarters to areas hosting economic projects.
He said the proposed road should be given priority when the Government considers new infrastructure projects.
On agricultural markets, Dr Mwigulu said the Government had instructed the Ministry of Agriculture to accelerate the sale of existing maize stocks, including through exports, to create storage and purchasing capacity for additional produce from farmers.
He added that Tanzanians seeking to sell agricultural produce in neighbouring countries should be allowed to access those markets.
The directive comes as market access and the ability of farmers to sell their produce remain important considerations in efforts to improve agricultural incomes.
On land disputes, the Prime Minister directed that Ludewa be allocated a chairperson of the District Land and Housing Tribunal after residents complained that the district was being served by a chairperson based in Njombe.
The arrangement, he said, needed to be addressed to improve access to land dispute resolution services for residents.
Dr Mwigulu also thanked President Samia Suluhu Hassan for appointing him Prime Minister, noting that Friday marked one year since his appointment on November 13, 2025.
“No complaint is too small. If something is troubling you, then it is a concern that deserves attention,” he said.