DAR ES SALAAM: Bank of Tanzania (BoT) has said it will take stern measures against individuals and companies operating microfinance businesses without licences.

A statement issued on Wednesday states that individuals and companies engaging illegally in microfinance business without licences are liable to a fine not less than 20m/- but not exceeding 100m/- or to imprisonment for a term of not less than two years but not exceeding five years or to both.

"The BoT will not hesitate to impose penalties as stated in section 16 (1) of the Microfinance Act, 2018 to individuals or companies operating microfinance business illegally," stated the statement.

Last month, BoT revoked the Msilikare Microfinance based in Shinyanga Region for Msilikare Microfinance Company Limited for violating the regulations.

The decision came after the central bank assured that the microfinance had been conducting its operations contrary to legal requirements.

The BoT said in a statement that the company has seriously violated the licencing conditions as well as due to its exploitative behaviour towards borrowers.

In the statement, the BoT Governor Mr Emmanuel Tutuba reaffirmed the BoT's unwavering dedication to safeguarding the interests of microfinance users.