THE BUILDING SOCIETIES ACT

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CHAPTER 87
THE BUILDING SOCIETIES ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
part i
PRELIMINARY PROVISIONS
1. Short title.
2. Interpretation.
3. Appointment of Registrar.
4. Certificates, etc., to be evidence.
5. Indemnity of officers.
part ii
FORMATION AND REGISTRATION
6. Maintenance of register.
7. Formation of building societies.
8. Commencement of business.
9. Provisions as to names of building societies.
10. Contents of rules of building societies.
11. Common seal.
12. Registered office and postal address.
part iii
MANAGEMENT OF BUILDING SOCIETIES
13. Directors.
14. Secretary.
15. Auditors.
16. Officers to give security.
17. Officers to account.
18. Officers not to accept gifts.
19. Restriction on payment of commission.
20. Provisions excluding liability of officers forbidden.
21. Powers of courts to grant relief.

ccept gifts.
19. Restriction on payment of commission.
20. Provisions excluding liability of officers forbidden.
21. Powers of courts to grant relief.

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650
part iv
POWERS OF BUILDING SOCIETIES
22. Power to borrow.
23. Power to hold land.
24. Power to make advances to members.
25. Power to invest.
26. Power to carry on business abroad.
27. Dividends only payable out of profits.
part v
MEETINGS AND PERIODICAL RETURNS
28. Annual general meeting.
29. Other meetings.
30. Annual account and statement.
31. Returns of sales and transfers.
part vi
MISCELLANEOUS PROVISIONS
32. Books and records to be kept by building societies.
33. Rules to be binding.
34. Duty to supply copies of rules.
35. Evidence of rules.
36. Minors.
37. Shares may be held jointly.
38. Prohibition of balloting.
39. Implied warranty.
40. Notice before repayment.
41. Payment of small sums on intestacy.
42. Exercise of power of sale.
43. Withholding or misapplying property of building society offence.
part vii
CHANGE OF NAME, ADDRESS, OFFICERS AND CONSTITUTION
44. Change of name.
45. Changes of address.
46. Changes of directors.
47. Alteration of rules.
48. Penalties.

NAME, ADDRESS, OFFICERS AND CONSTITUTION
44. Change of name.
45. Changes of address.
46. Changes of directors.
47. Alteration of rules.
48. Penalties.

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
part viii
AMALGAMATION OF SOCIETIES AND TRANSFER OF ENGAGEMENTS
49. Amalgamation of societies. 50. Transfer of engagements. 51. Special provisions for transfer and amalgamation. 52. Registration of unions and transfers of engagements to operate as conveyance. 53. Union or transfer of engagements not to prejudice creditors. part ix
DETERMINATION OF DISPUTES
54. Arbitration. 55. Jurisdiction of High Court. 56. Determination to be final. part x
POWERS OF THE REGISTRAR
57. Power to require production of books, etc. 58. Power to cause inspection of books. 59. Power to appoint inspector. 60. Power to forbid invitations for subscriptions, etc. 61. Power to suspend or cancel registration. part xi
TERMINATION, DISSOLUTION AND WINDING-UP
62. Termination and dissolution. 63. Instrument of dissolution. 64. Winding up. 65. Obligations of liquidators and trustees. 66. Liability of members. 67. Account and balance sheet on dissolution. 68. Dissolution by award of Registrar.

bligations of liquidators and trustees. 66. Liability of members. 67. Account and balance sheet on dissolution. 68. Dissolution by award of Registrar.

part xii
BUILDING SOCIETIES INCORPORATED OUTSIDE TANZANIA
69. Registration of foreign building societies. 70. Provisions of Act generally to apply to foreign building societies.

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652
part xiii
RULES AND REGULATIONS
71. Rules and regulations.
SCHEDULE

buted without permission of OAG.THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
652
part xiii
RULES AND REGULATIONS
71. Rules and regulations.
SCHEDULE

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PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Building Societies Act. 2.

ay be reproduced or distributed without permission of OAG.653
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Building Societies Act. 2.

In this Act, unless the context otherwise requires-
“basic advance” in relation to any advance made or to be made
by a building society for the purpose of its being used in
defraying the purchase price of freehold or leasehold land
or of a right of occupancy, means the maximum amount
which the society would consider proper to advance upon
the security of that land or right of occupancy if no other
security were taken by the society;
“building society” means a society formed for the purpose of
raising by the subscriptions of members a stock or fund
from which to make advances to members and registered
in accordance with the provisions of this Act;
“continuing arrangement” means any arrangement made
between a building society and another person whereby,
in contemplation of a series of advances comprising excess
advances being made by the society to members for the
purpose of their being used in defraying the purchase
prices of freehold or leasehold lands or right of occupancy,
that person undertakes to give to the society a series of
Short title
Interpretation
CHAPTER 87
THE BUILDING SOCIETIES ACT
An Act to provide for the formation and registration of building societies
and other related matters.

rpretation
CHAPTER 87
THE BUILDING SOCIETIES ACT
An Act to provide for the formation and registration of building societies
and other related matters.

[20th August, 1954]
R.L Cap. 340
Act No. 22 of 1954
GN. No. 478 of 1962

[20th August, 1954]
R.L Cap. 340
Act No. 22 of 1954
GN. No. 478 of 1962

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anzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BUILDING SOCIETIES ACT [CAP. 87 R.E.

2023]
654
guarantees, each of which is to secure sums payable to the
society in respect of such an advance;
“dispute” means a dispute between a building society and a
member or any representative of a member in his capacity
as a member of the society, unless by the rules for the time
being it shall be otherwise expressly provided, and in the
absence of such express provision such rules shall not apply
to any dispute between any such society and any member
thereof or other person whatever as to the construction
or effect of any mortgage deed or any contract contained
in any document, other than the rules of the society, and
shall not prevent any society, or any member thereof or any
person claiming through or under him, from obtaining in
the ordinary course of law any remedy in respect of any
such mortgage or other contract to which he or the society
would otherwise be by law entitled;
“excess advance” means, in relation to any advance, the amount
by which the advance exceeds the basic advance;
“Minister” means the Minister responsible for finance;
“register” means the register of building societies to be kept
by the Registrar under the provisions of section 6;
“Registrar” means the Registrar of Building Societies appointed
under the provisions of section 3 and includes a Deputy
Registrar and an Assistant Registrar;
“right of occupancy” means a right of occupancy granted
under the provisions of the Land Act;
“special resolution” means a resolution passed by not less than
three-fourths of the members of a building society present
and entitled to vote at any general meeting of which notice
specifying the intention to propose that resolution has been
duly given according to the rules of the society.

at any general meeting of which notice
specifying the intention to propose that resolution has been
duly given according to the rules of the society.

3. The Minister shall appoint a Registrar of Building Societies
to perform the duties and exercise the powers imposed and
conferred by this Act and may appoint a Deputy Registrar and
any number of Assistant Registrars who shall be subject to the
directions of the Registrar. Cap. 113
Appointment of
Registrar
GN. No. 478 of 1962

and
any number of Assistant Registrars who shall be subject to the
directions of the Registrar. Cap. 113
Appointment of
Registrar
GN. No. 478 of 1962

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
4. A certificate of incorporation, certificate of registration or
other document relating to a building society purporting to
be signed by the Registrar shall, in the absence of any evidence
to the contrary, be admissible as evidence without proof of the
signature. 5. The Registrar shall not, nor shall any person acting under
the authority of the Registrar or under any regulation made in
pursuance of this Act, be personally liable for or in respect of
any act or matter done in good faith in the exercise or exercise
of the powers conferred by this Act or by any regulation made
in pursuance of this Act. PART II
FORMATION AND REGISTRATION
6.

the exercise or exercise
of the powers conferred by this Act or by any regulation made
in pursuance of this Act. PART II
FORMATION AND REGISTRATION
6.

The Registrar shall keep a register of building societies in
which he shall record, in respect of any building societies
registered under section 7 or section 69, the following particulars,
that is to say:
(a) the name of the society;
(b) the situation of the registered office and the postal address
of the society; and
(c) such other information as the Registrar may determine. 7.–(1) Any seven or more persons intending to form a building
society may in a general meeting adopt rules in compliance
with the provisions of section 10 and shall, within fourteen
days thereafter or such extended period as the Registrar, either
before or after the expiration of such fourteen days, may allow,
send to the Registrar an application for registration in the
prescribed form accompanied by two copies of the rules. (2) Where the Registrar is satisfied that the application and
the rules are in compliance with the provisions of this Act and
any regulations made hereunder, he shall enter the prescribed
particulars relating thereto in the register and thereupon the
Certificates, etc.,
to be evidence
Indemnity of
officers
Maintenance of
register
Formation of
building societies

eto in the register and thereupon the
Certificates, etc.,
to be evidence
Indemnity of
officers
Maintenance of
register
Formation of
building societies

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656
society shall become a body corporate by its registered name
with perpetual succession until terminated or dissolved under
the provisions of this Act. (3) The Registrar shall issue a certificate of incorporation in
the prescribed form to every building society registered under
the provisions of this section. 8. A building society shall not commence business until it
has obtained a certificate of incorporation issued under the
provisions of section 7. 9.–(1) A building society may not be registered with a name
identical with that of any building society previously registered
and still subsisting or so nearly resembling the same as to be
likely to deceive, unless the subsisting society is in course of
being terminated or dissolved and consents to the registration,
or which is, in the opinion of the Registrar, undesirable. (2) The name of every building society shall end with the
words “Building Society”. (3) A building society shall not use any name or title other
than its registered name. 10.

ilding society shall end with the
words “Building Society”. (3) A building society shall not use any name or title other
than its registered name. 10.

The rules of every building society shall set forth-
(a) the name of the society and the chief office or place of
meeting for the business of the society;
(b) the manner in which the stock or funds of the society is
or are to be raised;
(c) the terms upon which shares are to be issued and
withdrawn and the manner in which contributions are
to be paid to the society;
(d) whether preferential shares are to be issued and, if so,
within what limits;
(e) the manner in which advances are to be made and repaid;
the deductions, if any, for premiums and the conditions
upon which a borrower can redeem the amount due
from him before the expiration of the period for which
Commencement
of business
Provisions as to
names of building
societies
Contents of
rules of building
societies

e the expiration of the period for which
Commencement
of business
Provisions as to
names of building
societies
Contents of
rules of building
societies

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E.

nia. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.657
THE BUILDING SOCIETIES ACT [CAP. 87 R.E.

2023]
the advance was made, with tables, where applicable in
the opinion of the registrar, showing the amount due
from the borrower after each stipulated payment;
(f) the manner in which losses are to be ascertained and
provided for;
(g) the manner in which membership is to cease;
(h) whether the society intends to borrow money and if so,
within what limits not exceeding those prescribed by
this Act;
(i) the purposes to which the funds of the society are to
be applied and the manner in which they are to be
invested;
(j) the manner of altering and rescinding the rules of the
society and of making additional rules;
(k) the manner of appointing, remunerating and removing
the boards of directors, or committee of management,
auditors and other officers;
(l) the manner of calling general and special meetings of
the members;
(m) provision for an annual or more frequent audit of the
accounts and inspection by the auditors of the mortgages
and other securities belonging to the society;
(n) whether disputes between the society and any of its
members or any person claiming by or through any
member or under the rules shall be settled by reference
to the High Court or to the Registrar or to arbitration;
(o) provision for the device, custody and use of the common
seal of the society;
(p) provision for the custody of the mortgages and other
securities belonging to the society;
(q) the powers and duties of the board of directors, or
committee of management and other officers;
(r) the fines and forfeitures to be imposed on members of
the society; and
(s) the manner in which the society shall be terminated or
dissolved.

cers;
(r) the fines and forfeitures to be imposed on members of
the society; and
(s) the manner in which the society shall be terminated or
dissolved.

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658
11.–(1) A building society shall have a common seal which
shall bear the registered name of the society. (2) A building society which is by its rules permitted to
carry on its business outside Tanzania may, if authorised by its
rules, have for use in any country, district or place not situate
in Tanzania an official seal, which shall be facsimile of the
common seal of the society, with the addition on this face of the
name of every country, district or place where it is to be used. (3) A deed or other document to which an official seal is
duly affixed shall bind the society as if it had been sealed with
the common seal of the society. 12. A building society shall have a registered office and postal
address in Tanzania to which all communications and notices
may be addressed. PART III
MANAGEMENT OF BUILDING SOCIETIES
13.–(1) A building society shall have a board of directors or
committee of management consisting of three or more persons,
of whom the secretary may but need not be one.

society shall have a board of directors or
committee of management consisting of three or more persons,
of whom the secretary may but need not be one.

(2) The duties of a director, or member of the committee
of management of a building society shall include the duty of
satisfying himself that the arrangements made for assessing
the adequacy of securities to be taken in respect of advances to
be made by the society are such as may be reasonably expected
to ensure that the adequacy of any security to be so taken will
be assessed by a competent and prudent person experienced in
the matters relevant to the determination of the value of that
security:
Provided that, nothing in this subsection shall be construed
as precluding a director or member of the committee of
management of a building society from approving such
arrangements as aforesaid by reason only that the arrangements
Common seal
Registered
office and postal
address
Directors

society from approving such
arrangements as aforesaid by reason only that the arrangements
Common seal
Registered
office and postal
address
Directors

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
provide for the assessment of the adequacy of such security by
himself or any other director or member of the committee of
management of the society. 14.–(1) A building society shall have a secretary. (2) Anything required or authorised to be done by or to
the secretary may, if the office is vacant or there is for any
other reason no secretary capable of acting, be done by or to
any assistant or deputy secretary, or, if there is no assistant or
deputy secretary capable of acting, by or to an officer of the
society authorised generally or specifically in that behalf by the
board of directors or committee or management. 15. A building society shall have one or more auditors, who
shall be persons approved for that purpose by the Registrar. 16.

committee or management. 15. A building society shall have one or more auditors, who
shall be persons approved for that purpose by the Registrar. 16.

An officer of a building society having the receipt or
charge of any money belonging to the society shall, before
taking upon himself the execution of his office become bound
with one sufficient surety at least in a bond according to the
prescribed form or give such other security as the society may
direct in such sum as the society may require conditioned for
rendering a just and true account of all moneys received and
paid by him on account of the society and for payment of all
sums of money due from him to the society at such times as its
rules appoint or as the society may require him to do. 17. An officer of a building society, his executors or
administrators shall, upon demand made or notice in writing
given or left at his last or usual place of residence, render an
account of all moneys received or paid by him on account of
the society and for all moneys, remaining in his hands and shall
deliver all securities and effects, books, papers and property
of the society in his hands or custody to such person as the
society may appoint. Secretary
Auditors
Officers to give
security
Officers to
account

rty
of the society in his hands or custody to such person as the
society may appoint. Secretary
Auditors
Officers to give
security
Officers to
account

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660
18.–(1) A director, secretary, surveyor, advocate or other officer
of a building society shall not, in addition to the remuneration
prescribed or authorised by the rules of the society, receive from
any other person any gift, bonus, commission, or benefit for or
in connection with any loan made by the society. (2) A person paying or accepting any such gift, bonus,
commission or benefit shall be liable on conviction to a fine not
exceeding two thousand shillings and in default of payment to
imprisonment for a term not exceeding six months and the
person accepting the gift, bonus, commission or benefit shall
as and when instructed by the court by whom he is convicted,
pay over to the society the amount or value of the gift, bonus,
commission or benefit, and in default of the payment shall be
liable to imprisonment for a term not exceeding six months.

or value of the gift, bonus,
commission or benefit, and in default of the payment shall be
liable to imprisonment for a term not exceeding six months.

19.–(1) It shall not be lawful-
(a) for a person having a financial interest in the disposition
of any freehold or leasehold land or of any right
of occupancy to receive or to agree to receive any
commission or gift from a building society, or from
any officer, servant or agent of a building society, in
consideration of the introduction of mortgage business
to the society in connection with the disposition of
the land or right of occupancy or in consideration of a
promise to introduce that business to the society; or
(b) for a building society, or any officer, servant, or agent of a
society, to offer to give or agree to give any commission or
gift to any person known to the society, officer, servant,
or agent, to have a financial interest in the disposition of
any freehold or leasehold land or right of occupancy or
to be a servant of a person having such an interest, for
any such consideration as is mentioned in paragraph (a).

sehold land or right of occupancy or
to be a servant of a person having such an interest, for
any such consideration as is mentioned in paragraph (a).

(2) For the purposes of this section, a person who is
employed, otherwise than in pursuance of a contract of service,
in connection with the disposition of any freehold or leasehold
land or of a right of occupancy by a person who has a financial
Officers not to
accept gifts
Restriction on
payment of
commission

reehold or leasehold
land or of a right of occupancy by a person who has a financial
Officers not to
accept gifts
Restriction on
payment of
commission

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
interest in that disposition shall be treated, so far as relates to the
disposition of that estate, as a servant of the person having the
said interest unless he carries on, independently of that person,
the business of an advocate, estate agent, surveyor or auctioneer.

person having the
said interest unless he carries on, independently of that person,
the business of an advocate, estate agent, surveyor or auctioneer.

(3) Where a building society has a financial interest in the
disposition of any freehold or leasehold land or of a right of
occupancy, nothing in this section shall prohibit-
(a) the society, or any officer, servant or agent of the society,
from offering or giving or agreeing to give, in relation to
the disposition of that land or right of occupancy, any
commission or gift to a servant of the society, not being
a person who, to the knowledge of the society, officer,
servant or agent, either himself has a financial interest
in the disposition of the land or the right of occupancy
or is, in addition to being a servant of the society, also
the servant of any person other than the society who
has such an interest, for any such consideration as is
mentioned in subsection (1); or
(b) a servant of the society, not being a person who himself
has a financial interest in the disposition of that land
or right of occupancy, or who is, in addition to being
the servant of the society, also the servant of any
person other than the society who has such an interest,
from receiving or agreeing to receive, in relation to
the disposition of that land or right of occupancy,
any commission or gift from the society, or from any
officer, servant or agent of the society, for any such
consideration as aforesaid.

of occupancy,
any commission or gift from the society, or from any
officer, servant or agent of the society, for any such
consideration as aforesaid.

(4) A person who contravenes the provisions of this section
commits an offence and on conviction shall be liable to a fine
not exceeding ten thousand shillings or to imprisonment for a
term not exceeding three months or to both. 20. Any provision, whether contained in the rules of a
building society or in any contract with a building society or
otherwise, for exempting any director, member of the committee
Provisions
excluding liability
of officers
forbidden

ontract with a building society or
otherwise, for exempting any director, member of the committee
Provisions
excluding liability
of officers
forbidden

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662
of management, manager or officer of a building society or any
person, whether an officer of the society or not, employed by
the society as auditor from, or indemnifying him against any
liability which by virtue of any rule of law would otherwise
attach to him in respect of any negligence, default, breach of
duty or breach of trust of which he may be guilty in relation to
the society, shall be void:
Provided that, a building society may, in pursuance of any
such provision as aforesaid, indemnify any such director,
member of the committee of management, manager, officer or
auditor against any liability incurred by him in defending any
proceedings, whether civil or criminal, in which judgment is
given in his favour or in which he is acquitted or in connection
with any application under section 21 in which relief is granted
to him by the court.

given in his favour or in which he is acquitted or in connection
with any application under section 21 in which relief is granted
to him by the court.

21.–(1) Where in any proceedings for negligence, default,
breach of duty or breach of trust against any person to whom
this section applies, it appears to the court hearing the case
that, that person is or may be liable in respect of the negligence,
default, breach of duty or breach of trust, but that he has acted
honestly and reasonably and that having regard to all the
circumstances of the case including those connected with his
appointment he ought fairly to be excused for the negligence,
default, breach of duty or breach of trust, that court may relieve
him either wholly or partly from his liability on such terms as
the court may think fit. (2) Where any person to whom this section applies has
reason to apprehend that any claim will or might be made
against him in respect of any negligence, default, breach of duty
or breach of trust he may apply to the High Court for relief and
the High Court on any such application shall have the same
power to relieve him as under this section it would have had
if it had been a court before which proceedings against that
person for negligence, default, breach of duty or breach of trust
had been brought. Powers of courts
to grant relief

re which proceedings against that
person for negligence, default, breach of duty or breach of trust
had been brought. Powers of courts
to grant relief

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(3) The persons to whom this section applies are the
directors, the members of the committee of management, the
members and officers of a building society and any persons
employed by a building society as auditors, whether they are
or are not officers of the society. PART IV
POWERS OF BUILDING SOCIETIES
22.–(1) A building society may receive deposits or loans at
interest from the members or from other persons to be applied
to the purposes of the society:
Provided that, the total amount received on deposit or loan
and not repaid by the society shall not at any time exceed two-
thirds of the amount secured to the society by mortgages from
its members.

sit or loan
and not repaid by the society shall not at any time exceed two-
thirds of the amount secured to the society by mortgages from
its members.

(2) In calculating the amount secured to a building society
by mortgages from its members for the purposes of subsection
(1) there shall be disregarded-
(a) the amount secured on properties, the payments in
respect of which were upwards of twelve months in
arrear at the date of the society’s last preceding annual
account and statement; and
(b) the amount secured on properties of which the society
had been twelve months in possession at the date of
such account and statement. (3) Money deposited with a building society as security for
an advance made by the society to a member, or as security
for any guarantee given in respect of such an advance, shall be
deemed to be money borrowed by the society. 23.–(1) It shall be lawful for a building society-
(a) to acquire and hold any right of occupancy which the
society requires for its business premises or for the
housing of its staff; and
Power to borrow
Power to hold
land

ld any right of occupancy which the
society requires for its business premises or for the
housing of its staff; and
Power to borrow
Power to hold
land

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664
(b) to acquire by foreclosure or surrender any right of
occupancy mortgaged to the society:
Provided that, any land acquired by a building society under
paragraph (b) of this section shall as soon afterwards as may be
conveniently practicable, be sold and converted into money. (2) A building society may let any part of this business
premises which is not required for the immediate use of the
society. 24.–(1) A building society may make advances to its members
out of its funds upon the security of a right of occupancy:
Provided that, a building society shall not advance money
on the security of any land or right of occupancy which is
subject to a prior mortgage, unless the prior mortgage is in
favour of the society making the advance and if any advance
is made in contravention of this proviso, the directors of the
society or the members of the committee of management, who
authorised the advance shall be jointly and severally liable for
any loss on the advance occasioned to the society.

f the committee of management, who
authorised the advance shall be jointly and severally liable for
any loss on the advance occasioned to the society.

(2) In determining the amount of any advance by a building
society to one of its members upon the security of any right of
occupancy, the society shall not take into account the value of
any additional security taken by the society for the advance,
other than a security of a class specified in the Schedule to
this Act. (3) Where a charge upon a policy of life assurance is taken as
additional security for such an advance as aforesaid, the value
of the policy shall be assessed at an amount not exceeding the
surrender value thereof at the time when the advance is made. (4) Where a guarantee given in pursuance of a continuing
arrangement is taken as additional security for such an advance
as aforesaid, the advance shall not exceed ninety-five per
centum of the amount of the purchase price for the defraying of
which the advance is made, the basic advance shall not exceed
seventy-five per centum of that amount and the excess advance
shall not exceed twenty per centum of that amount. Power to make
advances to
members

eed
seventy-five per centum of that amount and the excess advance
shall not exceed twenty per centum of that amount. Power to make
advances to
members

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.665
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(5) Where a building society takes as additional security for
an advance to a member a guarantee given in pursuance of
a continuing arrangement, the terms of the advance shall not
provide for the payment of any sums to the society in respect
of the advance after the expiration of a period of twenty years
from the date on which the advance is made nor, after any such
advance as aforesaid has been made by the society, shall the
society make any agreement which has the effect of rendering
any sums payable to the society in respect of the advance after
the expiration of the said period:
Provided that, nothing in this subsection shall affect the
power of a society to make any such agreement as aforesaid
in relation to any advance which has been made by the society
not less than one year before the making of the agreement if,
in the opinion of the directors or members of the committee of
management of the society, it is desirable so to do in order to
avoid hardship to a member of the society.

he directors or members of the committee of
management of the society, it is desirable so to do in order to
avoid hardship to a member of the society.

25.–(1) A building society may, as its rules permit, invest any
portion of its funds not immediately required for its purposes,
in or upon any stock, shares or securities authorised by law
for the investment of trust moneys or in any other classes of
investment authorised by the Minister by notice in the Gazette. (2) A building society which makes any advance upon
the security of a right of occupancy to any person other than
a member of the society shall have no power to take any
additional security for the advance. 26. A building society shall have power, provided that its rules
so allow, to carry on business in any country, district or place
not situate in Tanzania and to invest any portion of its funds
not immediately required for its purposes in advances upon
the security of right of occupancy in any such country, district
or place:
Provided that, the amount which a building society may
invest in any such country, district or place shall not, without
Power to invest
Power to carry on
business abroad

amount which a building society may
invest in any such country, district or place shall not, without
Power to invest
Power to carry on
business abroad

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
666
the consent of the Minister exceed the sum of its share capital,
loans and deposits raised in that country, district or place by
more than one-fifth of its capital assets in Tanzania. 27. Notwithstanding anything to the contrary contained in its
rules, no building society shall pay any dividend or interest on
any of its shares, whether preferential or not, otherwise than
out of profits earned by the society. PART V
MEETINGS AND PERIODICAL RETURNS
28. A building society shall in each calendar year hold a general
meeting as its annual general meeting in addition to any other
meetings in that year, and shall specify the meeting as such in
the notices calling it:
Provided that, where a building society is incorporated after
the 30th day of September in any year, it shall not be required to
hold an annual general meeting during that year. 29.

society is incorporated after
the 30th day of September in any year, it shall not be required to
hold an annual general meeting during that year. 29.

The board of directors or committee of management of
a building society shall call other general or special meetings as
may be required by the rules of the society or they may consider
desirable, and shall, notwithstanding anything contained in the
rules of the society, call a general or special meeting on the
application of one-tenth of the members or, in the case of a
society consisting of more than one thousand members, of one
hundred members. 30.–(1) A building society shall, as soon as is practicable and
not more than three months after the expiration of every
calendar year, cause to be prepared an account of all the
receipts and expenditure of the society during that year and a
general statement of its funds and effects, liabilities and assets
and every such account and statement shall be attested by
the auditors of the society and shall be countersigned by two
directors or two members of the committee of management. Dividends only
payable out of
profits
Annual general
meeting
Other meetings
Annual account
and statement

r two members of the committee of management. Dividends only
payable out of
profits
Annual general
meeting
Other meetings
Annual account
and statement

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.667
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(2) Every account and statement shall be in the form and
shall contain such particulars as may be prescribed and, without
prejudice to the generality of the foregoing, shall show-
(a) the amounts due to the holders of the various classes of
shares respectively;
(b) the amounts due to depositors and creditors for loans;
(c) the balance due or outstanding on mortgage securities,
not including prospective interest; and
(d) the amount invested by the society in other securities,
showing separately investments in and investments
outside Tanzania.

spective interest; and
(d) the amount invested by the society in other securities,
showing separately investments in and investments
outside Tanzania.

(3) An auditor in attesting any annual account or statement
shall either certify that it is correct, duly vouched and in
accordance with law or special report to the society in what
respect he finds it incorrect, unvouched or not in accordance
with law and shall also certify that he has at that audit actually
inspected the securities belonging to the society and shall state
the number of properties with respect to which evidence of
title has been produced to and actually inspected by him. (4) A member, depositor and creditor for loans shall be
entitled to receive from the society a copy of the account and
statement. (5) A copy of every annual account and statement certified
in such manner as may be prescribed shall be sent to the
Registrar within fourteen days after the annual or other general
meeting at which it is presented or within three months after
the expiration of the calendar year to which it relates, whichever
period expires first.

meeting at which it is presented or within three months after
the expiration of the calendar year to which it relates, whichever
period expires first.

(6) Where any building society fails to comply with the
provisions of this section, the society and every director, member
of the committee of management, secretary or other officer
of the society commits an offence and on conviction shall be
liable to a fine not exceeding one hundred shillings for every
day during which the default continues.

y commits an offence and on conviction shall be
liable to a fine not exceeding one hundred shillings for every
day during which the default continues.

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
668
31. A building society shall, in respect of each calendar year,
cause to be prepared and sent to the Registrar at the same time
as its annual account and statement is so sent, a return in such
form as may be prescribed containing particulars as may be
prescribed with respect to-
(a) every property which has, during the period to which
the return relates, been sold by the society in the
exercise of its powers as mortgagee thereof; and
(b) every mortgage which has been transferred by the
society during the said period.

e society in the
exercise of its powers as mortgagee thereof; and
(b) every mortgage which has been transferred by the
society during the said period.

PART VI
MISCELLANEOUS PROVISIONS
32.–(1) A building society shall keep the following books, that
is to say:
(a) a minute book recording all proceedings of general
meetings;
(b) a minute book recording all proceedings of the board
of directors or committee of management;
(c) a register of directors or member of the committee of
management, showing the full names of every director or
member, his usual residential address, and nationality
and, if that nationality is not his nationality of origin,
his nationality of origin, the date of his appointment
and the date of his ceasing to hold office as such director
or member; and
(d) such books of account as may be necessary to show the
receipts and expenditure of the society, the amounts
due to the holders of the various classes of shares
respectively and to depositors and creditors for loans,
the balance due or outstanding on mortgage securities
and the amount invested by the society. (2) A building society shall cause to be kept records showing
with respect to every advance made by the society on the
security of a right of occupancy-
Returns of sales
and transfers
Books and
records to be
kept by building
societies

advance made by the society on the
security of a right of occupancy-
Returns of sales
and transfers
Books and
records to be
kept by building
societies

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.669
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(a) the amount at which the land or right of occupancy
was assessed and the name of the person by whom the
assessment was made; and
(b) particulars of any additional security taken by the society. (3) Where any building society fails to comply with the
provisions of this section, the society and every director, member
of the committee of management, secretary or other officer
of the society commits an offence and on conviction shall be
liable to a fine not exceeding one hundred shillings for every
day during which the default continues. 33. The rules of a building society as registered under this Act
shall be binding on the several members and officers of the
society and on all persons claiming on account of a member
or under the rules, all of whom shall be deemed and taken to
have full notice thereof. 34.

society and on all persons claiming on account of a member
or under the rules, all of whom shall be deemed and taken to
have full notice thereof. 34.

A building society shall supply to any person requiring the
same a complete printed copy of its rules, with a copy of the
certificate of corporation appended thereto, and shall be entitled
to charge for the same a sum not exceeding two shillings. 35. A copy of the rules of a building society, certified by the
secretary or other officer of the society to be a true copy of its
registered rules, shall, in the absence of any evidence to the
contrary, be admissible as evidence of the rules. 36.–(1) A person under the age of twenty-one years may be
admitted as a member of any building society the rules of
which do not prohibit such admission. (2) A member of a building society while under the age of
twenty-one years may-
(a) give all necessary acquittance;
(b) consent to the dissolution of the society; and
(c) by his next friend, present a petition for winding-up,
Rules to be
binding
Duty to supply
copies of rules
Evidence of rules
Minors

he society; and
(c) by his next friend, present a petition for winding-up,
Rules to be
binding
Duty to supply
copies of rules
Evidence of rules
Minors

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670
but may not-
(i) vote at any meeting of the society;
(ii) hold any office in the society;
(iii) transfer any share standing in his name; or
(iv) execute a valid mortgage to secure advances made
to him by the society. 37. Two or more persons may jointly hold a share or shares in
a building society. 38. A building society shall not cause or permit applicants
for advances to ballot for precedence or in any way make the
granting of any advance depend on any chance or lot. 39. Where a building society makes to a member an advance
for the purpose of its being used in defraying the purchase
price of a right of occupancy the society shall be deemed to
warrant to the member that the purchase price is reasonable
unless, before any contract requiring the member to repay the
advance is entered into, the society give to the member a notice
in writing in such form as may be prescribed stating that the
making of the advance implies no such warranty.

the society give to the member a notice
in writing in such form as may be prescribed stating that the
making of the advance implies no such warranty.

40.–(1) A building society shall not accept any deposit except
on the terms that not less than one month’s notice may be
required by the society before repayment or withdrawal. (2) Where a building society contravenes this section,
the society and every director, member of the committee of
management, secretary or other officer of the society who is a
party to the contravention commits an offence and on conviction
shall be liable to a fine not exceeding four hundred shillings. 41.–(1) Where any member of or depositor with a building
society having in the funds thereof a sum of money not
exceeding one thousand shillings dies intestate the amount due
may be paid to the person who shall appear to the directors
or committee of management of the society to be entitled to
Shares may be
held jointly
Prohibition of
balloting
Implied warranty
Notice before
repayment
Payment of small
sums on intestacy

iety to be entitled to
Shares may be
held jointly
Prohibition of
balloting
Implied warranty
Notice before
repayment
Payment of small
sums on intestacy

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.671
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
receive the same, notwithstanding that letters of administration
have not been taken out, upon the society receiving satisfactory
evidence of death and a statutory declaration that the member
or depositor died intestate and that the person so claiming is
so entitled. (2) A payment made under the provisions of subsection (1)
shall be valid and effectual with respect to any demand from any
other person as next of kin or as the legal personal representative
of such deceased member or depositor against the funds of
the society, but nevertheless such next of kin or representative
shall have his lawful remedy for the amount of the payment as
aforesaid against the person who has received the payment.

next of kin or representative
shall have his lawful remedy for the amount of the payment as
aforesaid against the person who has received the payment.

42.–(1) A building society exercising its power of sale of any of
a right of occupancy mortgaged to it shall take reasonable care
to ensure that in the exercise of the power the price at which
the land or right of occupancy is sold is the best price which
can reasonably be obtained and any agreement if and so far as
it relieves or may have the effect of relieving a society from the
obligation imposed by this section shall be void. (2) Where a building society has exercised its power of sale or
of a right of occupancy mortgaged to it, it shall, within fourteen
days from the completion of the sale, send by registered post
to the person who immediately before the sale was the owner
of the land or right of occupancy at his last known address, a
notice containing the particulars relating to the sale as may be
prescribed. (3) Nothing in subsection (2) affects the operation of any
rule of law relating to the duty of a mortgagee to account to a
mortgagor.

y be
prescribed. (3) Nothing in subsection (2) affects the operation of any
rule of law relating to the duty of a mortgagee to account to a
mortgagor.

(4) Where a building society contravenes the provisions of
subsection (2), the society and every director, member of the
committee of management, secretary or other officer of the
society commits an offence and on conviction shall be liable to a
fine not exceeding eight hundred shillings and to an additional
fine not exceeding two hundred shillings for every day during
which the default continues. Exercise of power
of sale

ed shillings and to an additional
fine not exceeding two hundred shillings for every day during
which the default continues. Exercise of power
of sale

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672
43.–(1) Where any person by false representation or imposition
obtains possession of any moneys, securities, books, papers
or other effects of a building society or, having the same in
his possession, withholds or misapplies the same or wilfully
applies any part thereof to purposes other than those expressed
or directed in the rules of the society and authorised by this
Act, commits an offence and on conviction shall be liable to a
fine not exceeding eight hundred shillings and to be ordered
to deliver upon to the society all such money, securities, books,
papers or other effects and to repay the amount of money
applied improperly and in default of such delivery of effects
or repayment of such amount of money shall be liable to
imprisonment for a term not exceeding six months. (2) Proceedings under subsection (1) may be taken by or at
the instance of-
(a) the society;
(b) any member authorised by the society or by the board
of directors or committee of management thereof; or
(c) the Registrar.

e of-
(a) the society;
(b) any member authorised by the society or by the board
of directors or committee of management thereof; or
(c) the Registrar.

PART VII
CHANGE OF NAME, ADDRESS,
OFFICERS AND CONSTITUTION
44.–(1) A building society may, by special resolution and with
the previous approval of the Registrar signified in writing,
change its name. (2) A society which changes its name in accordance with the
provisions of subsection (1) shall, within fourteen days from
the date of the meeting at which the resolution was adopted,
send to the Registrar two copies of the resolution certified in
such manner as may be prescribed. (3) The Registrar shall register one copy of the resolution
and return the other to the society endorsed with a certification
of registration. Withholding
or misapplying
property of
building society
offence
Change of name

the other to the society endorsed with a certification
of registration. Withholding
or misapplying
property of
building society
offence
Change of name

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(4) A change of name by a building society in accordance
with the provisions of this section shall not affect any rights
or obligations of the society, or render defective any legal
proceedings by or against the society and any legal proceedings
that might have been continued or commenced against it by its
former name may be continued or commenced against it by its
new name. 45. A building society which changes the situation of its
registered office or its postal address shall, within fourteen days
after the change send to the Registrar notice thereof in the
prescribed form. 46. Whenever any person is appointed a director or a member
of the committee of management of a building society or ceases
for any reason to be a director or member of the committee
of management of a building society, the society shall within
fourteen days after happening send to the Registrar notice
thereof in the prescribed form.

management of a building society, the society shall within
fourteen days after happening send to the Registrar notice
thereof in the prescribed form.

47.–(1) A building society may, by special resolution, alter or
rescind any of its rules or make any additional rule:
Provided that, no such special resolution shall have any validity
until registered under the provisions of subsection (3). (2) Where a building society has altered or rescinded any of
its rules or made any additional rule, it shall, within fourteen
days from the date of the meeting at which the resolution was
adopted, send to the Registrar two copies of the resolution,
certified in such manner as may be prescribed. (3) Where the Registrar is satisfied that the alteration, addition
or rescission is in conformity with this Act, he shall register
one copy of the resolution and return the other to the society
endorsed with a certificate of registration. 48. Where any building society fails to comply with the
provisions of section 44(2), 45, 46 or 47(2), the society and
every director, member of the committee of management,
Changes of
address
Changes of
directors
Alteration of rules
Penalties

or 47(2), the society and
every director, member of the committee of management,
Changes of
address
Changes of
directors
Alteration of rules
Penalties

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
674
secretary and other officers of the society commits an offence
and on conviction shall be liable to a fine not exceeding one
hundred shillings for every day during which the default
continues. PART VIII
AMALGAMATION OF SOCIETIES AND
TRANSFER OF ENGAGEMENTS
49.–(1) Two or more building societies may unite and become
one society upon such terms as shall be agreed upon by three-
fourths of the members, holding not less than two thirds of
the whole number of shares, of each of the societies present at
general meetings respectively convened for the purpose. (2) Two or more societies so uniting may adopt the name of
either or any of them or such other name as the Registrar may
approve. (3) Notice of any such union shall be sent to the Registrar in
the prescribed form. 50.

r any of them or such other name as the Registrar may
approve. (3) Notice of any such union shall be sent to the Registrar in
the prescribed form. 50.

A building society may, by a special resolution, transfer
its engagements to any other building society which may
undertake to fulfil those engagements, and a building society
may undertake to fulfil the engagements of any other building
society by a special resolution:
Provided that, a transfer of engagements shall not take effect
unless or until the consent thereto in writing to the holders
of not less than two-thirds of the whole number of shares of
each society party thereto has been obtained and notice of the
transfer, which it shall be the duty of the society transferring
its engagements to send to the Registrar, has been registered. 51.–(1) Notwithstanding the provisions of sections 49 and 50
a building society desiring to unite with one or more other
building societies or to transfer its engagements to another
building society or to undertake to fulfil the engagements of
Amalgamation of
societies
Transfer of
engagements
Special provisions
for transfer and
amalgamation

ociety or to undertake to fulfil the engagements of
Amalgamation of
societies
Transfer of
engagements
Special provisions
for transfer and
amalgamation

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.675
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
another building society which has not obtained the concurrence
of the holders of two-thirds of the whole number of shares of
the society may apply to the Registrar in the prescribed manner
for a confirmation of the union, transfer or undertaking and
thereupon the Registrar shall have power to confirm the same. (2) Before confirming any union, transfer or undertaking,
the Registrar shall publish notice of the same in the Gazette and
in such one or more newspapers, if any, as he may determine
and shall give the society and any other persons he may think
fit an opportunity of being heard. 52.

e or more newspapers, if any, as he may determine
and shall give the society and any other persons he may think
fit an opportunity of being heard. 52.

Subject to the provisions of the Land Registration Act,
the registration by the Registrar of the notice of union of any
building society under section 49, or of the transfer of the
engagements of any building society to another building
society under section 50 or the confirmation by the Registrar
of any such union or transfer under section 51, shall operate as
an effectual conveyance, transfer and assignment as at the date
of the said registration or confirmation of the funds, properties
and assets of the societies so uniting to the united society or
of the society transferring its engagements to the society to
which the engagements are transferred. 53. A union of building societies or transfer of engagements
from one building society to another shall not affect the rights
of any creditor of either or any society uniting or transferring
its engagements.

nts
from one building society to another shall not affect the rights
of any creditor of either or any society uniting or transferring
its engagements.

PART IX
DETERMINATION OF DISPUTES
54.–(1) Where the rules of a building society direct disputes
to be referred to arbitration, arbitrators shall be named and
elected in the manner which the rules, provide, or if there is no
such provision, at the first general meeting of the society, none
of the said arbitrators being beneficially interested, directly
Registration
of unions and
transfers of
engagements
to operate as
conveyance
Cap. 334
Union or transfer
of engagements
not to prejudice
creditors
Arbitration

ation
of unions and
transfers of
engagements
to operate as
conveyance
Cap. 334
Union or transfer
of engagements
not to prejudice
creditors
Arbitration

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676
or indirectly in its funds, of whom a certain number, not less
than three shall be chosen by ballot in each case of dispute, the
number of the arbitrators and mode of ballot being determined
by the rules of the society. (2) In the case of the death or refusal or neglect of any of
the said arbitrators to act, the society at a general meeting shall
name and elect an arbitrator to act in the place of the arbitrator
dying, or refusing or neglecting to act. (3) The names of all arbitrators elected to act under the
foregoing provisions shall be entered in the minute book of
the society.

neglecting to act. (3) The names of all arbitrators elected to act under the
foregoing provisions shall be entered in the minute book of
the society.

(4) The award made by the arbitrators or the major part of
them according to the true purport and meaning of the rules
of the society, shall determine the dispute and should either of
the parties to the dispute refuse or neglect to comply with or
conform to such award within a time to be limited therein, the
High Court, upon good and sufficient proof being adduced of
such award having been made and of the refusal or neglect of
the party to comply therewith, shall enforce compliance with
the same upon the petition of any person concerned. (5) Where the parties to any dispute arising in a building
society agree to refer the dispute to the Registrar or where
the rules of the society direct disputes to be referred to the
Registrar, the award of the Registrar shall have the same effect
as that of arbitrators. 55.

ules of the society direct disputes to be referred to the
Registrar, the award of the Registrar shall have the same effect
as that of arbitrators. 55.

The High Court may hear and determine disputes in the
following cases:
(a) if it shall appear to the Court upon the petition of any
person concerned that application has been made by
either party to the dispute to the other party for the
purpose of having the dispute settled by arbitration
under the rules of the society and that the application
has not within forty days been complied with or that
the arbitrators have refused or for a period of twenty-
one days have neglected to make any award; and
Jurisdiction of
High Court

omplied with or that
the arbitrators have refused or for a period of twenty-
one days have neglected to make any award; and
Jurisdiction of
High Court

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(b) where the rules of the society direct disputes to be
referred to the High Court. 56. A determination by arbitrators or by the High Court or
by the Registrar under this Act of a dispute shall be binding
and conclusive on all parties and shall be final to all intents
and purposes and shall not be subject to appeal and shall
not be removed or removable into any court or restrained or
restrainable by the injunction of any court:
Provided that, the arbitrators or the Registrar, may at the
request of either party state a case for the opinion of the High
Court on any question of law, but shall not be compelled to do
so, and shall have power to grant to either party in the dispute
such discovery as to documents and otherwise as might be
granted by the High Court, such discovery to be made on behalf
of the society by such officer of the society as the arbitrators or
the Registrar may determine.

y the High Court, such discovery to be made on behalf
of the society by such officer of the society as the arbitrators or
the Registrar may determine.

PART X
POWERS OF THE REGISTRAR
57.–(1) The Registrar may, at any time by notice in writing
served on a building society or on any person who is or has
been an officer of such a society, require the society or person
to produce to the Registrar such books, accounts, deeds and
other documents relating to the business of the society and to
furnish to him such other information relating to that business
as he considers necessary for the exercise of the powers given to
him by this Act and any such notice may contain a requirement
that any information to be furnished in accordance with the
notice shall be verified by a statutory declaration. (2) Where any building society or other person fails to
comply with the requirements of a notice under this section,
the society, and every director, member of committee of
management, secretary or other officer of the society or such
other person, commits an offence and on conviction shall be
Determination to
be final
Power to require
production of
books, etc.

f the society or such
other person, commits an offence and on conviction shall be
Determination to
be final
Power to require
production of
books, etc.

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678
liable to a fine not exceeding one hundred shillings for every
day during which the default continues. 58.–(1) The Registrar may, if he thinks fit, on the application
of ten members of a building society, each of whom has been
a member of the society for not less than twelve months,
immediately preceding the date of the application, appoint an
accountant or actuary to inspect the books of the society and
to report hereon. (2) A person applying under subsection (1) for inspection
shall deposit with the Registrar such sum as a security for the
costs of the proposed inspection as the Registrar may require. (3) All expenses of or incidental to the inspection shall be
defrayed by the applicants, or out of the funds of the society,
or by the members or officers, or former members or officers,
of the society in such proportions as the Registrar may direct.

he funds of the society,
or by the members or officers, or former members or officers,
of the society in such proportions as the Registrar may direct.

(4) A person appointed under this section shall have power
to make copies of any books of the society and to take extracts
there from at all reasonable hours at the registered office of the
society or at any place where the books are kept. (5) The Registrar shall communicate the results of any such
inspection to the applicants and to the society. 59.–(1) The Registrar may, on the application of one-tenth of
the whole number of members of a building society or of one
hundred members in the case of a building society consisting
of more than one thousand members, and with the consent of
the Minister either-
(a) appoint an inspector to examine into and report on the
affairs of the society; or
(b) call a special meeting of the society:
Provided that-
(i) the application under this section shall be supported
by such evidence as the Registrar may direct for the
purpose of showing that the applicants have good
reason for requiring the inspection to be made
Power to cause
inspection of
books
Power to appoint
inspector

of showing that the applicants have good
reason for requiring the inspection to be made
Power to cause
inspection of
books
Power to appoint
inspector

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.679
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
or the meeting to be called, and that they are not
actuated by malicious motives in their application;
(ii) such notice of the application shall be given to the
society as the Registrar may direct;
(iii) the Registrar shall require the applicants to give
security for the costs of the proposed inspection
or meeting before the inspector is appointed or
the meeting is called; and
(iv) all expenses of and incidental to the inspection or
meeting shall be defrayed by the applicants or out
of the funds of the society, or by the members or
officers, or former members or officer, of the society,
in such proportions as the Registrar may direct. (2) An inspector appointed under this section may require
the production of all or any of the books, accounts, securities
and documents of the society, and may examine on oath its
officer, members, agents and servants in relation to its business,
and may administer an oath accordingly.

of the society, and may examine on oath its
officer, members, agents and servants in relation to its business,
and may administer an oath accordingly.

(3) The Registrar may direct at what time and place a special
meeting under this section is to be held, and what matters are to
be discussed and determined at the meeting, and the meeting
shall have all the powers of a meeting called according to the
rules of the society, and shall in all cases have power to appoint
its own chairman, any rule of the society to the contrary
notwithstanding. (4) The Registrar may, without any application by members,
but with the consent of the Minister given on each occasion,
exercise the powers given by this section in the following cases:
(a) where a building society has, for two months after
notice, failed to make any return required by this Act;
(b) where a building society has, for two months after notice,
failed to correct or complete any such return;
(c) where evidence is furnished by a statutory declaration
of not less than three members of a building society
of facts which, in the opinion of the Registrar, call for
investigation:

a statutory declaration
of not less than three members of a building society
of facts which, in the opinion of the Registrar, call for
investigation:

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680
Provided that, the Registrar shall forthwith, on receipt of
the declaration, send a copy thereof to the society and that
society shall within fourteen days from the sending of such
copy, be entitled to give the Registrar an explanatory statement
in writing by way of reply thereto.

all within fourteen days from the sending of such
copy, be entitled to give the Registrar an explanatory statement
in writing by way of reply thereto.

60.–(1) Where with respect to any building society the Registrar
considers it expedient so to do in the interests of persons who
have invested or deposited or may invest or deposit money with
the society, he may by order direct that, unless and until the
order is revoked, no invitation to subscribe for, or to acquire
or offer to acquire, securities or to lend or deposit money shall
be made by or on behalf of the society:
Provided that, before making any order under this section,
the Registrar shall serve on the society a written notice
stating his intention to make the order and shall consider any
representations with respect to the proposed order made to him
by the society within the period of thirty days from the date of
the service of the notice and, if the society so requests, afford it
an opportunity of being heard by him within that period. (2) Where any invitation is made in contravention of an
order made under subsection (1), the person by whom the
invitation is so made commits an offence and on conviction
shall be liable to a fine not exceeding ten thousand shillings
or to imprisonment for a term not exceeding two years or to
both.

nce and on conviction
shall be liable to a fine not exceeding ten thousand shillings
or to imprisonment for a term not exceeding two years or to
both.

61.–(1) Where the Registrar is satisfied that a certificate of
incorporation has been obtained for a building society by
fraud or mistake or that any such society exists for an illegal
purpose or has wilfully and after notice from the Registrar
violated any of the provisions of this Act or has ceased to exist
the Registrar may, by notice in writing cancel the registration
of the society or suspend the registration thereof for any term
not exceeding three months, and may renew such suspension
for the like period. Power to forbid
invitations for
subscriptions, etc. Power to suspend
or cancel
registration

months, and may renew such suspension
for the like period. Power to forbid
invitations for
subscriptions, etc. Power to suspend
or cancel
registration

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.681
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(2) The Registrar shall before cancelling or suspending the
registration of a building society under the foregoing powers
give to the society not less than two months previous notice
in writing specifying briefly the ground of the proposed
cancellation or suspension and shall as soon as practicable
after the cancellation or suspension takes place cause notice
thereof to be published in the Gazette and in such one or more
newspapers, if any, as he may determine. (3) A building society may appeal to the High Court against
the cancellation or suspension of its registration and thereupon
the Court may, if it thinks it just so to do, set aside the cancellation
or suspension. (4) The Registrar may also, if he thinks fit, at the request
of any building society, evidenced in such manner as he may
direct, cancel the registration of the society.

may also, if he thinks fit, at the request
of any building society, evidenced in such manner as he may
direct, cancel the registration of the society.

(5) A building society whose registration has been cancelled or
suspended shall, from the time of the cancellation or suspension,
but in the case of suspension only while the suspension lasts and
in any case subject to the right of appeal given by this section,
absolutely cease to enjoy the privileges conferred by this Act but
without prejudice to any liability incurred by the society and
any such liability may be enforced against the society as if the
cancellation or suspension had not taken place. PART XI
TERMINATION, DISSOLUTION AND WINDING UP
62.–(1) A building society may terminate or be dissolved-
(a) upon the happening of any event declared by its rules
to be the termination of the society;
(b) by dissolution in the manner prescribed by its rules;
(c) by dissolution with the consent of three-fourths of
the members, holding not less than two-thirds of the
numbers of shares in the society, testified by their
signatures to an instrument of dissolution; or
Termination and
dissolution

than two-thirds of the
numbers of shares in the society, testified by their
signatures to an instrument of dissolution; or
Termination and
dissolution

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682
(d) by winding up, either voluntarily under the supervision
of the High Court or by the High Court. (2) Notice of the termination of any building society and
of the commencement and completion of any dissolution or
winding-up shall be sent to the Registrar and registered by him. 63.–(1) An instrument of a dissolution of a building society
shall set forth-
(a) the liabilities and assets of the society in detail;
(b) the number of members, and the amount standing to
their credit in the books of the society;
(c) the claims of depositors and other creditors, and the
provision to be made for their payment;
(d) the intended appropriation or division of the funds and
property of the society; and
(e) the names of one or more persons to be appointed
trustees for the purpose of the dissolution, and their
remuneration. (2) The provisions of an instrument of dissolution may be
varied with the like consent, testified in the same manner, as is
required for an instrument of dissolution.

ns of an instrument of dissolution may be
varied with the like consent, testified in the same manner, as is
required for an instrument of dissolution.

(3) An instrument of dissolution and any instrument varying
the provisions of an instrument of dissolution shall be made and
signed in duplicate and sent to the Registrar within fourteen
days of signature, whereupon the Registrar shall register one
copy of the instrument and return the other to the society
endorsed with a certificate of registration. (4) An instrument of dissolution and any instrument varying
the provisions of an instrument of dissolution shall when
registered bind upon all the members of the society. 64.–(1) The High Court may, on the petition of-
(a) any member authorised to present the same on behalf
of the society by three-fourths of the members present
at a general meeting of the society specially called for
the purpose; or
Instrument of
dissolution
Winding up

by three-fourths of the members present
at a general meeting of the society specially called for
the purpose; or
Instrument of
dissolution
Winding up

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.683
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(b) any judgment creditor for not less than one thousand
shillings, but not otherwise;
order that a building society be wound up, either voluntarily
under the supervision of the court or by the court. (2) The provisions of the Companies Act relating to the
winding up of companies made under the supervision of the
court or by the court shall apply mutatis mutandis to the winding
up of a building society. 65. Where a building society is being dissolved in the manner
prescribed by its rules or in pursuance of a special resolution
the provisions of this Act shall continue to apply as if the
liquidators or other persons conducting the dissolution of
the society or the trustees appointed under the instrument
of dissolution were the board of directors or committee of
management of the society.

on of
the society or the trustees appointed under the instrument
of dissolution were the board of directors or committee of
management of the society.

66.–(1) The liability of any member of a building society in
respect of any share upon which no advance has been made
shall be limited to the amount actually paid or which he has to
pay until his share is fully paid up and in respect of any share
upon which an advance has been made shall be limited to the
amount payable thereon under any mortgage or other security
or under the rules of the society. (2) When a building society is being dissolved or wound
up, a member to whom an advance has been made under any
mortgage or other security or under the rules of the society shall
not be liable to pay the amount payable under the mortgage or
other security or rules except at the time or times and subject
to the conditions therein expressed. 67. Where a building society is dissolved in the manner
prescribed by its rules or in pursuance of a special resolution the
liquidators, trustees and other persons having the conduct of the
dissolution shall, within twenty-eight days from the termination
of the dissolution, send to the Registrar an account and
balance sheet signed and certified by them as correct, showing
Cap.

days from the termination
of the dissolution, send to the Registrar an account and
balance sheet signed and certified by them as correct, showing
Cap.

212
Obligations of
liquidators and
trustees
Liability of
members
Account and
balance sheet on
dissolution

212
Obligations of
liquidators and
trustees
Liability of
members
Account and
balance sheet on
dissolution

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684
the assets and liabilities of the society at the commencement of
the dissolution and the way in which those assets and liabilities
have been applied and discharged. 68.–(1) On the application in writing of one-tenth of the whole
number of members of any building society or of one hundred
members in the case of a society of more than one thousand
members, setting forth that the society is unable to meet the
claims of its members and that it would be for their benefit
that it should be dissolved and requesting an investigation into
the affairs of the society with a view to the dissolution thereof,
the Registrar may investigate the affairs of the society, but shall
before doing so give not less than two months’ previous notice
in writing to the society at its registered office.

e affairs of the society, but shall
before doing so give not less than two months’ previous notice
in writing to the society at its registered office.

(2) Where on such investigation it appears that the society
is unable to meet the claims of its members and that it would
be or their benefit that it should be dissolved, the Registrar
may if he considers it expedient so to do award that the society
be dissolved and shall direct in what manner the affairs of the
society are to be wound up:
Provided that, the Registrar may suspend his award for such
period as he may deem necessary to enable the society to make
such alterations of its rules as will in his judgment prevent the
necessity of the award being made. (3) The Registrar shall, within twenty-one days after the
making of any award for dissolution under this section, cause
notice thereof to be advertised in the Gazette and in such one
or more newspapers, if any, as he may determine. PART XII
BUILDING SOCIETIES INCORPORATED
OUTSIDE TANZANIA
69.–(1) A building society incorporated outside Tanzania the
rules of which-
Dissolution
by award of
Registrar
Registration of
foreign building
societies

–(1) A building society incorporated outside Tanzania the
rules of which-
Dissolution
by award of
Registrar
Registration of
foreign building
societies

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THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
(a) contain the several matters which in the case of building
societies to be incorporated in Tanzania are required
by section 10 to be set forth;
(b) contain no provision which is incompatible with any
provision of this Act; and
(c) expressly authorise the society to carry on business
outside the country in which it is incorporated,
may apply for registration under this Act.

d
(c) expressly authorise the society to carry on business
outside the country in which it is incorporated,
may apply for registration under this Act.

(2) Every such application shall be in the prescribed form
and shall be accompanied by a-
(a) copy of its rules and copy of the certificate of incorpo-
ration, each certified in such manner as may be
prescribed, and if the same are not written in the
English language, certified translations of the same;
(b) statement of the situation and postal address of its
registered or principal office in the country of its
incorporation;
(c) statement of the situation and postal address of its
principal office in Tanzania;
(d) copy of its latest annual statement and account; and
(e) statement of the names and addresses of the directors
or of the committee of management, as the case may be. (3) The Registrar may in his discretion, allow or refuse an
application for registration made under subsection (1):
Provided that, any person aggrieved by the refusal of the
Registrar to register a building society under this section may
within one month or such extended period as the Minister
may allow from the date of such refusal appeal against such
refusal to the President, whose decision shall be final.

h extended period as the Minister
may allow from the date of such refusal appeal against such
refusal to the President, whose decision shall be final.

(4) Where the Registrar allows an application, he shall enter
the prescribed particulars relating to the society in the register
and thereupon the society shall, subject to the provisions of
section 23, become entitled to hold land and take mortgages
over land in Tanzania. (5) The Registrar shall issue a certificate of registration to a
building society registered under the provisions of this section.

r land in Tanzania. (5) The Registrar shall issue a certificate of registration to a
building society registered under the provisions of this section.

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686
(6) A building society incorporated outside Tanzania shall
not commence business in Tanzania until it has received a
certificate of registration under subsection (5). 70.

ty incorporated outside Tanzania shall
not commence business in Tanzania until it has received a
certificate of registration under subsection (5). 70.

The provisions of this Act relating to building societies
incorporated in Tanzania shall apply mutatis mutandis to building
societies registered under the provisions of section 69 and in
addition thereto the following special provisions shall apply
to every building society registered under the provisions of
section 69:
(a) the society shall maintain an office and a postal address
in Tanzania;
(b) the society shall keep separate books of account in respect
of its business in Tanzania, which books shall be kept at
the society’s principal place of business in Tanzania;
(c) the society shall prepare a separate account and
statements in respect of its business in Tanzania
which shall be in the form required in the case of a
building society incorporated in Tanzania with such
modifications as the Registrar may allow, as well as a
consolidated account and statement; and
(d) the society shall not, save with the prior approval of the
Minister, invest outside Tanzania any moneys raised
in excess of one-fifth of the capital assets for the time
being of the society in Tanzania.

of the
Minister, invest outside Tanzania any moneys raised
in excess of one-fifth of the capital assets for the time
being of the society in Tanzania.

PART XIII
RULES AND REGULATIONS
71.–(1) The High Court may make rules of court for regulating
proceedings before the High Court, and applications and appeals
thereto, under the provisions of this Act, and for the fees to be
paid in respect thereof. (2) Subject to the provisions of subsection (1), the Minister
may make regulations prescribing anything required to be
prescribed under this Act and for the better carrying into
Provisions of
Act generally to
apply to foreign
building societies
GN. No. 478 of 1962
Rules and
regulations

this Act and for the better carrying into
Provisions of
Act generally to
apply to foreign
building societies
GN. No. 478 of 1962
Rules and
regulations

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.687
THE BUILDING SOCIETIES ACT [CAP. 87 R.E. 2023]
effect of the provisions of this Act and, without prejudice to the
generality of the foregoing, such regulations may provide for
the procedure in the registry of building societies, the hours in
which the registry is to be open for business, the forms to be
used and the fees to be paid in respect of any matter under this
Act required, permitted or entitled to be done. SCHEDULE
(Made under section 24(2))
CLASSES OF ADDITIONAL SECURITY WHICH MAY
BE TAKEN INTO ACCOUNT IN DETERMINING
THE AMOUNT OF ADVANCES TO MEMBERS
1. A charge upon a policy of life assurance. 2. Guarantee given, whether in pursuance of a continuing arrangement or
not, by an assurance company. 3. A charge given by the member upon money deposited with the
society or upon any stocks, shares or securities authorised by law for
the investment of trust moneys. 4.

by the member upon money deposited with the
society or upon any stocks, shares or securities authorised by law for
the investment of trust moneys. 4.

A guarantee, not being a guarantee given in pursuance of a continuing
arrangement, accepted by the society with the written consent of, the
member and supported by a charge upon money deposited with the
society or upon any such stocks, shares or securities as aforesaid. 5. A charge upon money deposited with the society, being a charge
which is given in accordance with arrangements which are approved
by the Registrar and which provide that the society shall also take, as
further security for each advance in respect of which such a charge is
given to the society, a guarantee given by an assurance company.

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