Dar es Salaam —Thousands of Tanzanians are raising concerns over the growing harassment by unregulated online loan applications, which have been accused of violating privacy, issuing threats, and shaming borrowers publicly.
The outcry follows a surge in complaints on social media from users who say they are being intimidated by loan app agents after failing to repay on time. Some borrowers allege that lenders send threatening messages or call their family members, employers, and friends — tactics that many say are humiliating and illegal.
The affected apps, many of which operate without approval from the Bank of Tanzania (BoT), offer instant loans through mobile phones but charge extremely high interest rates, often reaching over 30 percent in a few days. Borrowers say the easy access to these loans has trapped them in a cycle of debt and fear.
Speaking to Mwananchi Communications Ltd, several victims shared their frustrations. One borrower, who requested anonymity, said:
“I borrowed TSh 50,000 but failed to repay in three days. The next day, they called my boss and my relatives, accusing me of being a criminal. I have never been so embarrassed in my life.”
Consumer rights groups have condemned the actions of such digital lenders, urging the government to take urgent action to protect citizens from exploitation.
Mr. Emmanuel Tutuba, Governor of the Bank of Tanzania, recently reiterated that only financial institutions licensed by the BoT are allowed to issue loans. He warned that unregulated digital lenders pose serious risks to the financial system and violate Tanzania’s data protection laws.
“We are aware of these unethical practices and are working closely with law enforcement agencies to identify and take action against unregistered loan platforms,” Tutuba said.
Experts have also warned that the lack of strict regulation in the fintech sector has allowed illegal lenders to flourish, preying on desperate citizens who need quick cash.
They urge the central bank to fast-track the Digital Credit Regulations, which would require all loan apps to register and follow clear guidelines on data privacy, interest rates, and debt collection practices.
In response to growing public pressure, the Fair Competition Commission (FCC) and the Tanzania Communications Regulatory Authority (TCRA) have announced joint investigations into the operations of several popular apps accused of harassment and data abuse.
For now, financial experts are advising citizens to borrow only from registered banks and microfinance institutions, and to carefully read loan terms before accepting offers online.
As more Tanzanians turn to mobile loans to meet daily expenses, the call for stronger oversight and consumer protection continues to grow louder.
