Karatu residents urged to avoid loan sharks

ARUSHA: RESIDENTS of Karatu District have been urged to utilise registered financial institutions to avoid falling prey to loan sharks.

District Commissioner Dadi Kolimba warned that some unregulated lenders operate within the district, often leading to complaints and even the loss of assets used as collateral.

“We encourage residents to exclusively use officially registered financial service providers to ensure they adhere to legal regulations and avoid exploitative loan terms,” Mr Kolimba emphasised during a meeting with a team of financial literacy experts from the Ministry of Finance.

“The financial education provided by the Ministry will empower residents to understand their rights and the responsibilities of lenders,” stated Mr Kolimba.

“This knowledge will be crucial in identifying and avoiding exploitative loan sharks.”

Furthermore, Mr Kolimba urged Karatu residents to involve their spouses in all loan decisions.

“This collaborative approach ensures that both partners understand the loan terms and can work together to repay the loan on time, minimising the risk of family conflicts arising from loan defaults,” he emphasised.

The Ministry of Finance Financial Management Officer, Mr Stanley Kibakaya, said that the programme aims to provide financial education and encourage residents to use official financial services.

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In Karatu, the team will reach out to entrepreneurs, employees, financial service providers, small financial service promoters, tourism stakeholders, and beneficiaries of the 10 per cent loans provided by the local government.

“In the third phase of providing financial education to the public, which began this month, we aim to reach Arusha, Kilimanjaro, Mwanza, and Mara,” said Mr Kibakaya.

The public financial education programme is part of the implementation of the Financial Sector Development Master Plan 2020/21 – 2029/30, which aims to reach 80 per cent of the population by next year. 2025/26.

The team in Karatu they will visit several wards including Endabash, Mang’ola, Baray, Rhotia Kati, and Mbulumbulu, where topics to be presented will include personal financial management, savings, loans, insurance, financial investments and planning for retirement.

The first phase of financial education, which began in May 2024, reached 12 regions and 62 councils, targeting various groups including entrepreneurs, public and private employees, farmers, primary and secondary school students, university students, small financial service promoters, and financial service providers.