Tanzania, May 19 -- Dodoma. Prime Minister Mwigulu Nchemba has criticised the banking system for selling borrowers' collateral without considering the outstanding loan balance, saying the practice is unfair and requires urgent review.

He also raised concern over cumbersome loan procedures, noting that borrowers seeking large loans are often subjected to the same paperwork requirements as those applying for much smaller amounts.

According to him, the situation discourages some borrowers and pushes them towards informal lenders with fewer procedures.

Speaking on Tuesday, May 19, 2026, during celebrations marking the 20th anniversary of the Warehouse Receipts Regulatory Board (WRRB) in Dodoma, Dr Nchemba said the practice of selling colla...