Consumer protection remains a critical aspect of Tanzania’s financial sector. The obligation for financial service providers to comply with the Bank of Tanzania (Financial Consumer Protection) Regulations, G.N. No 884 of 2019 (the Consumer Protection Regulations) underscores this importance.
Regulation 43 (1) of the Consumer Protection Regulations requires every financial service provider to establish a mechanism for receiving, processing and determining consumer complaints. While this requirement has been in place, there were previously no standardised guidelines on how all financial service providers should embed these requirements within their operations except for banking institutions, which were guided by the Bank of Tanzania Guidelines for Banking Consumers’ Complaints, 2015 (the 2015 Guidelines).
To address this gap, the Bank of Tanzania (BoT) has issued the Guidelines for Handling Financial Consumer Complaints, 2025 (the Guidelines) which revokes the 2015 Guidelines and is applicable to all financial service providers (FSPs) licensed with the BoT. This initiative aims to strengthen consumer protection and establish a standardised framework for managing consumer complaints across FSPs including banks, financial institutions, microfinance service providers and individual money lenders.
The Guidelines aim to ensure complaints are handled efficiently, fairly, transparently, and timely, thereby increasing consumer satisfaction, trust and confidence within the financial sector. The Guidelines are designed to ensure tighter compliance with the Consumer Protection Regulations.
Key Definitions
The following are some of the key terms as defined under the Guidelines:
Complaint means dissatisfaction expressed by a consumer on financial products or service provided by a FSP.
Complaint Handling Mechanism means systems and processes established by a FSP to effectively manage and resolve consumer complaints.
Consumer means a person that uses, or has used or is using, any of the financial products or services provided by a FSP.
Financial Consumer Protection Unit means the unit designated within the BoT to handle consumer complaints.
FSP means an institution or individual licensed, regulated and supervised by the BoT.
Primary FSP means a FSP that has a direct relationship with a consumer in offering the respective financial products or services.
Secondary FSP means a FSP indirectly involved in the consumer transaction.
Third Party means an individual or entity that forms part of the business processes which are necessary to support the provision of banking or related financial services.
In this legal update, we briefly outline the key requirements introduced under the Guidelines to ensure FSPs comply with their obligations when handling consumer complaints.
Key Compliance Requirements under the Guidelines
Guiding Principles
In accordance with guideline 7 of the Guidelines, FSPs must adhere to certain key principles when handling complaints to ensure consumer satisfaction and regulatory compliance. These principles include honesty, confidentiality, transparency, fairness and equal treatment. This requires FSPs to present all material facts clearly and accurately without any intent to mislead the complainant; to respect consumer privacy by ensuring that personal information and complaint details are treated with strict confidentiality; to clearly communicate their to complaint-handling processes, procedures, and expected timelines; and to treat all complainants fairly and without bias at every stage of the complaint-handling process.
Awareness and Accessibility of Complaint Handling Mechanisms
Part II of the Guidelines requires FSPs to make complaint handling mechanisms easily accessible and well-publicised. Key obligations include:
- Providing consumers with clear and sufficient information about their right to lodge complaints and available mechanisms for submitting, resolving, and appealing complaints, including and the applicable timelines.
- Displaying complaint handling procedures prominently at principal offices, branches, and agent locations in both English and Kiswahili.
- Providing at least three reliable and secure channels, whether analog or digital, for receiving complaints, tailored to the needs and profiles of consumers.
- Ensuring complaints are handled free of charge such as providing toll-free numbers for phone-based complaints.
- Assisting consumers with special needs, such as disabilities or language barriers.
- Addressing complaints related to third parties or agents and maintaining records of all complaints received and resolved through those agents.
Complaint Handling and Resolution Procedures by FSPs
Part III of the Guidelines requires FSPs to establish internal procedures for receiving, handling, resolving, monitoring, and reporting complaints. These procedures must include:
- Assigning a unique registration number to each complaint and completing the prescribed form in the First Schedule upon receipt.
- Acknowledging complaints immediately upon receipt, whether in writing or through another appropriate channel.
- Investigating complaints based on their subject matter and determining appropriate remedial action.
- Resolving complaints within the timelines prescribed under the Consumer Protection Regulations.
- Notifying complainants in writing of the final resolution, including the reasons for the decision and any available next steps, such as escalation to BoT.
FSPs must also comply with the following requirements:
- Approving a formal complaints policy and conducting regular reviews in line with their governance structures.
- Training relevant staff, including customer care and front-line officers, on complaint handling procedures.
- Establishing a dedicated complaints unit staffed with trained officers at the head office as well as at branches/regional offices.
- Retaining complaint records for a minimum of five (5) years from the date of receipt.
- Ensuring that all relevant staff, including customer care and front-line officers, are aware of internal complaints handling procedures.
Lodging of Complaints at the BoT for Appeal
Where complainants are dissatisfied with the FSP’s initial decision, or if they do not receive a response within the prescribed timelines, they may appeal to the BoT by lodging their complaints to the Complaint Consumer Protection Unit for determination.
Complaints to the BoT must be submitted within the timelines prescribed under the Consumer Protection Regulations and in accordance with BoT’s eligibility criteria.
Channels for Lodging Complaints with the BoT
Consumers can now lodge complaints with the BoT during working hours through multiple channels, including:
- The SEMA NA BoT website;
- The SEMA NA BoT mobile application;
- The SEMA NA BoT toll-free number (IVR);
- The SEMA NA BoT chatbot; and
- Any other acceptable method, depending on the available communication channels.
* SEMA NA BoT in English means Speak with BoT.
BoT Criteria for Complaint Eligibility
Before determining a complaint, the BoT will ensure that:
- The complaint has been fully handled by the FSP to finality.
- The consumer remains dissatisfied with the FSP’s decision.
- The statutory timeframe for receiving a response from the FSP has lapsed.
- No legal proceedings have been initiated in a court or tribunal on the same matter.
- The complainant has suffered material loss or inconvenience.
- The complaint is neither vexatious nor frivolous.
Upon receiving a consumer complaint and making its initial determination as outlined above, the BoT will notify the relevant FSP and require them to submit a response to the complaint within ten (10) days from day of receipt of the notice. Failure by the FSP to respond may result in the BoT to proceeding with the complaint exparte and could lead to imposition of penalties or sanctions on the FSP.
Upon determination of the complaint by the BoT, the FSP is required to indicate acceptance or non-acceptance of the determination in writing within seven (7) days of the determination.
Other Compliance Requirements
FSPs must submit a monthly report using a prescribed form within 15 days after the end of each month.
Any FSP that contravenes the Guidelines may be subject to sanctions and administrative measures under the Consumer Protection Regulations.