1.   Short title.

   2.   Application.

   3.   Interpretation.


   4.   Establishment of the Bank.

   5.   Principal functions of the Bank.

   6.   Regulatory and supervisory functions with respect to clearance and settlement systems.

   7.   Formulation and implementation of monetary policy.

   8.   Appointment of Governor and Deputy Governors.

   9.   Board of Directors.

   10.   Disqualification for appointment to the Board.

   11.   Meetings, quorum, conduct and decisions of the Board.

   12.   Standing Committees of the Board.

   13.   Management of the Bank and powers of the Governor and Deputy Governors.

   14.   Remuneration of Governor, Deputy Governors and members of the Board.

   15.   Appointment of officers and other staff of the Bank.

   16.   Secrecy.

   17.   Capital reserves and accounts of the Bank.

   18.   General Reserve Fund, etc, and allocation of profits.

   19.   Losses charged on Consolidated Fund.

   20.   Accounting, auditing and reporting.

   21.   Submission of report to the National Assembly.

   22.   Exemption from certain taxes.

   23.   Liquidation and Winding up of the Bank.

   24.   By-laws.


   25.   Currency and its issue.

   26.   Issuance of bank notes and coins.

   27.   Notification of notes and coins.

   28.   Legal tender.

   29.   Lost and damaged currency.

   30.   Destruction of coins and notes.


   31.   The Bank as banker to the Governments and other public authorities.

   32.   Functions as banker and fiscal agent.

   33.   Bank fee.

   34.   Direct advances and other short term credit to the Governments, etc.

   35.   Operation in Government securities, etc.

   36.   Meaning of annual budgeted revenue.

   37.   Prohibition of other credit to Governments, etc.

   38.   Financial relations with other banks.

   39.   Re-discounts, etc.

   40.   Loans and advances.

   41.   Bank as a lender of last resort.

   42.   Bank not to extend credit.

   43.   Bank may purchase, hold and sell securities.

   44.   Control of banking activities.

   45.   Liquid assets ratio.

   46.   Submission and publication of information.

   47.   Power to conduct examinations of banks or financial institutions.

   48.   Credit reference system.

   49.   Administrative penalty.

   50.   External reserves, gold and foreign exchange.

   51.   Reserve of external assets.

   52.   Dealing in gold and foreign currencies.

   53.   Exchange control.

   54.   Payments agreements.

   55.   Fiscal and depository for Government’s transactions, etc.

   56.   Miscellaneous powers and functions.

   57.   Relations with private enterprises, organizations and bodies.

   58.   Relations with corporations.

   59.   Interest on deposit balances and blocked accounts.

   60.   Advice to Governments.

   61.   Prohibited operations.


   62.   Limitation on external holdings.

   63.   Prohibited banking names.

   64.   Banks, etc. deemed to be public service for certain purposes.

   65.   Immunity of members of the Board, staff and employees of the Bank.

   66.   Immunity of the Bank.

   67.   Immunity of the assets managed by the Bank.

   68.   Overriding effect.

   69.   Waiver for non-compliance.

   70.   Powers to make regulations.

   71.   Repeal and savings.


An Act to provide for more responsive regulatory role of the Bank of Tanzania in relation to the formulation and implementation of monetary policy; to provide for the supervision of banks and financial institutions and to provide for other related matters.

[1st July, 2006]
[G.N. No. 84 of 2006]

Acts Nos.
4 of 2006
14 of 2009
11 of 2010
16 of 2015


1.   Short title

   This Act may be cited as the Bank of Tanzania Act.

2.   Application

   This Act shall apply to Mainland Tanzania as well as to Tanzania Zanzibar.

3.   Interpretation

   In this Act, unless the context requires otherwise–

   "Act" means the Bank of Tanzania Act, 2006;

   "Bank" means the Bank of Tanzania referred to under section 4(1) of this Act;

   "bank" means an entity that is engaged in the banking business;

   "banking business" means the business of receiving funds from the general public through the acceptance of deposits payable upon demand or after a fixed period or after notice, or any similar operation through the frequent sale or placement of bonds, certificates, notes or other securities, and to use such funds, in whole or in part, for loans or investments for the account of and at the risk of the person doing such business;

   "Board" means the Board of Directors of the Bank established by section 9 of the Act;

   "credit reference bureau" means an entity specialized in the collection and sale of credit performance information for individuals and companies;

   "credit reference databank" means a computerized mechanism created by the Bank to receive and supply information to banks, financial institutions, credit reference bureaus and other institutions authorized by the Bank, regarding the credit transactions of customers, including their off-balance sheet operations;

   "clearing system" means a set of procedures whereby banks or financial institutions present and exchange data or documents relating to funds or securities transfer to other financial institutions at a clearing house and includes a mechanism for the calculation of participants’ bilateral or multilateral net positions with a view to facilitating the settlement of their obligations on a net or gross basis;

   "Director" means a member of the Board other than the Governor or the Deputy Governors;

   "Deputy Governor" means a Deputy Governor appointed under section 8(3);

   "ex-officio member" means a member of the Board who attends a meeting by virtue of his position;

   "financial institution" means an entity engaged in the business of banking, but limited as to size, locations served, or permitted activities, as prescribed by the Bank or required by the terms and conditions of its licence;

   "foreign exchange" means currencies and units of accounts other than the currency of the United Republic, and claims in and to such currencies and units of accounts;

   "Government" means the Government of the United Republic;

   "Governments" means the Government of the United Republic and the Revolutionary Government of Zanzibar;

   "Governor" means a Governor of the Bank appointed under section 8(1);

   "member" in relation to the Board means a member of the Board of Directors;

   "Minister" means, except where otherwise specified, the Minister responsible for financial matters of the United Republic;

   "payment system" means a system consisting of a set of instruments, banking procedures and typically, inter-bank funds transfer systems that ensure the circulation of money;

   "public authority" means–

   (a)   the authority for any political sub-division of the United Republic, including any city, municipal, town or district council; or

   (b)   any common services authority of which Tanzania is a member with other countries; or

   (c)   any corporation, agency or enterprise specified for the purposes of this Act by the Bank;

   "settlement system" means an arrangement established and operated by, or under the control of the Bank for the discharge of payment obligations and settlement obligations between settlement system participants.

THE BANK (ss 4-24)

4.   Establishment of the Bank

   (1) There shall continue to exist a corporation going by the name and style of the Bank of Tanzania.

   (2) The Bank of Tanzania shall be a body corporate and in its corporate name shall–

   (a)   have perpetual succession and a common seal;

   (b)   be capable of suing and being sued; and

   (c)   subject to the provisions of this Act, be capable of acquiring, holding and alienating any movable or immovable property.

5.   Principal functions of the Bank

   (1) The principal functions of the Bank shall be to exercise the functions of a central bank and, without prejudice to the generality of the foregoing, to formulate, implement and be responsible for monetary policy, including exchange rate policy, to issue currency, to regulate and supervise banks and financial institutions including mortgage financing, development financing, lease financing, licencing and revocation of licences and to deal, hold and manage gold and foreign exchange reserves of Tanzania.

   (2) The Bank shall compile, analyse, and publish the monetary, financial, balance of payments statistics and other statistics covering various sectors of the national economy.

   (3) In the pursuit of its objectives and performance of its tasks, the Bank shall be autonomous and accountable as provided for under this Act.

6.   Regulatory and supervisory functions with respect to clearance and settlement systems

   (1) The Bank shall–

   (a)   regulate, monitor, and supervise the payment, clearing and settlement system including all products and services thereof; and

   (b)   conduct oversight functions on the payment, clearing and settlement systems in any bank, financial institution or infrastructure service provider or company.

   (2) The Bank may–

   (a)   participate in any such payment, clearing and settlement systems;

   (b)   establish and operate any system for payment, clearing or settlement purposes; and

   (c)   perform the functions assigned by or under any other written law for the regulation of payment, clearing and settlement systems.

7.   Formulation and implementation of monetary policy

   (1) The primary objective of the Bank shall be to formulate, define and implement monetary policy directed to the economic objective of maintaining domestic price stability conducive to a balanced and sustainable growth of the national economy.

   (2) Without prejudice to subsection (1), the Bank shall ensure the integrity of the financial system and support the general economic policy of the Government and promote sound monetary, credit and banking conditions conducive to the development of the national economy.

   (3) The Minister and the Governor shall, where circumstances require, consult each other with a view to exchanging information and seeking coordination on economic and financial matters.

8.   Appointment of Governor and Deputy Governors

   (1) There shall be appointed by the President a Governor who shall, unless he dies or resigns or vacates or is removed from his office for good cause or is disqualified, hold office for a period of five years and shall be eligible for a re-appointment.

   (2) No person shall qualify to be appointed as a Governor unless he–

   (a)   holds a university degree;

   (b)   has not less than fifteen years experience in the fields of economics, banking, accountancy or finance or law;

   (c)   has been in senior managerial positions in the government departments or institutions, private institutions or international organizations; and

   (d)   has not been appointed and served as the Governor for two Consecutive term.

   (3) There shall be appointed by the President three Deputy Governors who shall, unless one dies, resigns, vacates or is removed from office for good cause or is disqualified, hold office for a period of five years and be eligible for re-appointment for a further term of five years only.

   (4) The appointment of the Deputy Governors shall be made on the basis that at least one of the appointees hails from either side of the United Republic.

9.   Board of Directors Act No. 11 of 2010 s. 4">

   (1) There shall be a Board of Directors of the Bank and subject to this Act, the Board shall be responsible for the determination of the policy of the Bank, approval of its budget and for such other functions as are specifically conferred or imposed upon the Board by this Act or any other written law provided that the Governor and any other member of the Board may refer any matter for consideration by the Board.

   (2) The Board shall consist of–

   (a)   the Governor, who shall be the Chairman;

   (b)   Deputy Governors, who shall be Deputy Chairmen in the order determined by the Governor;

   (c)   the Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar, who shall be an ex-officio member;

   (d)   one representative from the Ministry responsible for finance in the Government of the United Republic; and

   (e)   four non-executive Directors at least one of whom hails from either side of the United Republic.

   (3) The Permanent Secretary to the Treasury of the Government of United Republic and the Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar, may appoint in writing persons in the public service to be their representatives who shall, at any meeting for which they are appointed, have the powers of the Permanent Secretary or Principal Secretary, in their capacities as members of the Board.

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