The Central Bank of Tanzania (BoT) has issued a stern warning to individuals, institutions, and companies involved in lending activities without the necessary license. The bank has declared that offenders will face severe penalties, including a fine of TZS 20 million or imprisonment for a minimum of two years. The announcement came from BoT Governor, Emmanuel Tutuba, during a press statement in which he expressed concern over the increasing number of unauthorized lending practices in the country. Tutuba revealed that specific institutions, companies, and individuals have been identified engaging in lending activities without the required licenses, a violation of Section 16(1) of the Small Financial Services Act of 2018. Governor Tutuba cited Section 16(2)(a) of the Small Financial Services Act, emphasizing the gravity of the offenses committed. He stated, "Offenders under this law will face penalties that include fines not less than TZS 20 million or imprisonment for a minimum of two years." In addition to issuing this warning, Governor Tutuba highlighted the importance of licensed financial service providers adhering to the regulations, laws, and guidelines set forth by BoT. He emphasized the need for these providers to provide borrowers with legally binding contracts and disclose the approved interest rates as outlined in the lending policy. The Central Bank of Tanzania remains committed to ensuring the integrity of the financial sector and protecting the rights and interests of borrowers. It urges all financial service providers to comply with the law to maintain a fair and transparent lending environment. With these measures in place, the BoT aims to safeguard the public from unscrupulous lending practices and maintain stability within the financial industry.