THE TRUSTEE INVESTMENTS ACT

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CHAPTER 53
THE TRUSTEE INVESTMENTS ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
1. Short title.
2. Interpretation.
3. Application.
4. Authorised investment.
5. Purchase at premium of redeemable stocks.
6. Discretion of trustees.
7. Power to retain investment which has ceased to be authorised.
8. Investment in bearer securities.
9. Limitation on investments in scheduled corporations and companies.
10. Conditions for investments in companies.
11. Conditions for investment in mortgages.
12. Loans and investments by trustees not chargeable as breaches of trust.
13. Liability for loss by reason of improper investment.
14. Power to deposit money at bank and to pay calls.
15. Powers supplementary to powers of investment.
16. Amendment of Schedule.
17. Omitted.
18. Disapplication.
SCHEDULE

money at bank and to pay calls.
15. Powers supplementary to powers of investment.
16. Amendment of Schedule.
17. Omitted.
18. Disapplication.
SCHEDULE

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1. This Act may be cited as the Trustee Investments Act. 2. In this Act, unless the context otherwise requires-
“authorised investments” means the investments authorised
by this Act or by the Act or instrument creating the trust;
“company” means a company incorporated under the
Companies Act. “debenture” includes debenture stock, bonds and any other
securities of a company or corporation which constitute
a charge on the assets of the company or corporation or
any part thereof;
“Minister” means the Minister responsible for finance.

tion which constitute
a charge on the assets of the company or corporation or
any part thereof;
“Minister” means the Minister responsible for finance.

“private company” shall have the meaning assigned to that
expression in the Companies Act;
“scheduled corporation” means a body corporate specified
in the Schedule to this Act;
“securities” includes stock, funds and shares;
“securities payable to bearer” include securities transferable
by delivery or by delivery and endorsement;
“share” means a share in the share capital of a company or
corporation and includes stock;
“special range property” means property forming part of a
trust fund which, by the Act or instrument creating the
trust, the trustee is specifically authorised to retain or
property in which he is specifically authorised to invest;
Short title
Interpretation
Cap. 212
Cap. 212
CHAPTER 53
THE TRUSTEE INVESTMENTS ACT
An Act to provide for investments of trust funds by trustees, to disapply
Part I of the Trustee Act of the United Kingdom and to provide for
related matters. [11th August, 1967]
Act No. 33 of 1967

ds by trustees, to disapply
Part I of the Trustee Act of the United Kingdom and to provide for
related matters. [11th August, 1967]
Act No. 33 of 1967

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THE TRUSTEE INVESTMENTS ACT [CAP. 53 R.E. 2023]
the expression “trust” does not include the duties incident to
an estate conveyed by way of mortgage; but with this exception,
the expressions “trust” and “trustee” include implied and
constructive trusts, and cases where the trustee has a beneficial
interest in the trust property, and the duties incident to the
office of personal representative of a deceased person. 3.–(1) The provisions of this Act shall apply to all trusts
whether created before or after its commencement. (2) The powers conferred by this Act on trustees shall be
in addition to the powers conferred by the Act or instrument
creating the trust:
Provided that, the powers conferred by this Act shall
be exercised if and so far only as a contrary intention is not
expressed in the Act or instrument creating the trust and
subject to such conditions and limitations, if any, as may be
imposed by such Act or instrument or by this Act or by any
other written law. 4.

ust and
subject to such conditions and limitations, if any, as may be
imposed by such Act or instrument or by this Act or by any
other written law. 4.

A trustee may invest any trust funds in his hands, whether at
the time in a state of investment or not-
(a) in bills, bonds or stock or any other securities issued by
the Government;
(b) in deposits in the Tanzania Commercial Bank;
(c) in interest bearing deposits in the National Bank of
Commerce;
(d) in securities issued by the East African Development
Bank, the African Development Bank or by the PTA
Bank which are redeemable in and in respect of
which the interest is payable in the lawful currency of
Tanzania;
(e) subject to section 9, in the fully paid up shares or
debentures of a Scheduled corporation;
(f) subject to the provisions of sections 9 and 10, in the
fully paid up shares or debentures of a company, other
than a private company; or
Application
Authorised
investment

sions of sections 9 and 10, in the
fully paid up shares or debentures of a company, other
than a private company; or
Application
Authorised
investment

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670
(g) subject to the provisions of section 11, in a first legal
mortgage of land held for a Government lease or of
land held under a right of occupancy. 5.–(1) A trustee may invest in any of the securities specified in
section 4 notwithstanding that the same may be redeemable
and that the price exceeds the redemption value. (2) A trustee may retain until redemption any redeemable
securities purchased in the exercise of the powers conferred
upon him by section 4. 6. Every power conferred by section 4 shall, subject to the
provisions of subsection (2) of section 3, be exercised according
to the discretion of the trustee. 7. A trustee shall not be liable for breach of trust by reason
only of his continuing to hold an investment which has ceased
to be an authorised ceased investment.

shall not be liable for breach of trust by reason
only of his continuing to hold an investment which has ceased
to be an authorised ceased investment.

8.–(1) A trustee may, unless expressly prohibited by the Act
or instrument creating the trust, retain or invest in securities
payable to bearer which, if not so payable, would have been
authorised investments:
Provided that, securities payable to bearer retained or
taken as an investment by a trustee, other than the public
trustee, shall, until sold, be deposited by him for safe
custody and collection of income with a banker or banking
company. (2) A direction that investments shall be retained or
made in the name of a trustee shall not, for the purposes of
subsection (1), be deemed to be such an express prohibition
as aforesaid. (3) A trustee shall not be responsible for any loss incurred
by reason of such deposit, and any sum payable in respect of
such deposit and collection shall be paid out of the income of
the trust fund. Purchase at
premium of
redeemable
stocks
Discretion of
trustees
Power to retain
investment which
has ceased to be
authorised
Investment in
bearer securities

se at
premium of
redeemable
stocks
Discretion of
trustees
Power to retain
investment which
has ceased to be
authorised
Investment in
bearer securities

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THE TRUSTEE INVESTMENTS ACT [CAP. 53 R.E. 2023]
9.–(1) The power of a trustee to invest a trust fund in the
shares or debentures of scheduled corporations and companies
conferred in section 4 shall be subject to the following
limitations:
(a) the value of the investment made in any single scheduled
corporation or company shall not exceed one-tenth of
the total value of the trust fund;
(b) the total value of the investments made in companies
shall not exceed one-third of the total value of the trust
fund; and
(c) the total value of the investments made in scheduled
corporation and of the investments made in companies
shall not exceed two-thirds of the total value of the trust
fund. (2) Where a trust fund includes special range property,
subsection (1) shall have effect as if references to the trust fund
were references to each part thereof as does not include special
range property. 10.

bsection (1) shall have effect as if references to the trust fund
were references to each part thereof as does not include special
range property. 10.

A trustee shall not invest any trust fund in the shares or
debentures of a company unless-
(a) the company’s total issued and paid up capital is two
million shillings or more; and
(b) the company, during each of the three years preceding
the year in which the investment is proposed to be made,
has made profits and the total of the profits earned
during the three years is not less than fifteen per centum
of the total value of the company’s paid-up share capital
as at the end of the year immediately preceding the year
in which the investment is proposed to be made. 11. A trustee may invest a trust fund in a mortgage of land
only if-
(a) the value of the land including the value of any buildings
thereon is more than twice the amount proposed to be
invested;
Limitation on
investments
in scheduled
corporations and
companies
Conditions for
investments in
companies
Conditions for
investment in
mortgages

sted;
Limitation on
investments
in scheduled
corporations and
companies
Conditions for
investments in
companies
Conditions for
investment in
mortgages

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672
(b) the unexpired term of the leasehold or right of
occupancy, is not less than twenty years;
(c) the date of repayment of the mortgage debt is not less
than fifteen years before the date of the expiry of the
lease or right of occupancy;
(d) the interest to be received in respect of the mortgage
debt is not less than eight per centum per annum;
(e) there has been no breach of any covenant of the lease or
right of occupancy;
(f) development requirements, if any, annexed to the lease
or right of occupancy, by or under the authority of any
written law, other than any requirement which is of
continuing nature, have been complied with; and
(g) in the case of land held for a Government lease, the rent
payable in respect of the land does not exceed the rent
prescribed in the First Schedule to the Freehold Titles
(Conversion) and Government Leases Act.

ayable in respect of the land does not exceed the rent
prescribed in the First Schedule to the Freehold Titles
(Conversion) and Government Leases Act.

12.–(1) A trustee lending any trust fund on the security of any
property on which he can properly lend shall not be chargeable
with breach of trust by reason only of the proportion borne by
the amount of the loan to the value of the property at the time
when the loan was made, if it appears to the court that-
(a) in making the loan, the trustee was acting upon a report
to the value of the property made by a person whom he
reasonably believed to be an able practical surveyor or
valuer instructed and employed independently of any
owner of the property, whether such surveyor or valuer
carried on business in the locality where the property is
situate or elsewhere; and
(b) the loan was made under the advice of the surveyor or
valuer expressed in the report. (2) This section applies to investments made before as well
as after the commencement of this Act. 13.–(1) Where a trustee improperly advances trust fund on a
mortgage security which would at the time of the investment
Cap. 393
Loans and
investments
by trustees not
chargeable as
breaches of trust
Liability for
loss by reason
of improper
investment

e of the investment
Cap. 393
Loans and
investments
by trustees not
chargeable as
breaches of trust
Liability for
loss by reason
of improper
investment

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THE TRUSTEE INVESTMENTS ACT [CAP. 53 R.E. 2023]
be a proper investment in all respects for a smaller sum than
is actually advanced thereon, the security shall be deemed an
authorised investment for the smaller sum, and the trustee
shall only be liable to make good the sum advanced in excess
thereof with interest. (2) This section applies to investments made before as well
as after the commencement of this Act. 14.–(1) Trustees may, pending the negotiation and preparation
of any mortgage, or during any other time while an investment
is being sought for, pay any trust fund into a bank to a deposit
or other account, and all interest, if any, payable in respect
thereof shall be applied as income. (2) Trustees may apply capital money subject to a trust in
payment of the calls on any shares subject to the same trust.

f shall be applied as income. (2) Trustees may apply capital money subject to a trust in
payment of the calls on any shares subject to the same trust.

15.–(1) Trustees lending any trust fund on the security of
any property on which they can lawfully lend may, subject
to the provisions of section 11, contract that the money shall
not be called in during any period not exceeding seven years
from the time when the loan was made, provided interest be
paid within a specified time not exceeding thirty days after
every half-yearly or other day on which it becomes due, and
provided there be no breach of any covenant by the mortgagor
contained in the instrument of mortgage for the maintenance
and protection of the property. (2) Where any securities of a company are subject to a trust,
the trustee may concur in any scheme or arrangement-
(a) for the reconstruction of the company;
(b) for the sale of all or any part of the property or
undertaking of the company to another company;
(c) for the amalgamation of the company with another
company; and
(d) for the release, modification or variation of any rights,
privileges or liabilities attached to the securities or
any of them, in like manner as if they were entitled to
Power to deposit
money at bank
and to pay calls
Powers
supplementary
to powers of
investment

r
any of them, in like manner as if they were entitled to
Power to deposit
money at bank
and to pay calls
Powers
supplementary
to powers of
investment

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674
such securities beneficially, with power to accept any
securities of any denomination or description of the
reconstructed or purchasing or new company in lieu
of or in exchange for all or any of the first-mentioned
securities; and the trustees shall not be responsible
for any loss occasioned by any act or thing so done in
good faith, and may retain any securities so accepted
as aforesaid for any period for which they could have
properly retained the original securities.

good faith, and may retain any securities so accepted
as aforesaid for any period for which they could have
properly retained the original securities.

(3) Where any conditional or preferential right to subscribe
for any securities in any company is offered to trustees in respect
of any holding in such company, they may, as to all or any of
such securities, either exercise such right and apply capital
money subject to the trust on payment of the consideration, or
renounce such right, or assign for such right or title thereto to
any person, including any beneficiary under the trust, without
being responsible for any loss occasioned by any act or thing so
done by them in good faith:
Provided that, the consideration for any such assignment
shall be held as capital money of the trust. (4) The powers conferred by this section shall be exercisable
subject to the consent of any person, whose consent to a change
of investment is required by any written law or by the Act or
instrument, if any, creating the trust. (5) Where the loan referred to in subsection (1) is made
under an order of a court, the powers conferred by that
subsection shall apply only if and as far as the court may, by
order, direct.

tion (1) is made
under an order of a court, the powers conferred by that
subsection shall apply only if and as far as the court may, by
order, direct.

16.–(1) The Minister may, subject to the provisions of subsection
(2) and with the approval of the Minister responsible for legal
affairs, by order published in the Gazette, add to or delete from
the Schedule the name of a body corporate. (2) An order adding the name of a body corporate to the
Schedule, shall not be made unless either-
Amendment of
Schedule

the name of a body corporate. (2) An order adding the name of a body corporate to the
Schedule, shall not be made unless either-
Amendment of
Schedule

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THE TRUSTEE INVESTMENTS ACT [CAP. 53 R.E. 2023]
(a) at the time of making the order the Government or
a corporation established by or under any Act is the
beneficial owner of not less than ten per centum of the
issued share capital, if any, and the body corporate has
made profits during each of the three years immediately
preceding the date of the order; or
(b) the Government has the power to appoint the majority
of the members of the board of directors or other
body having the day to day management of the body
corporate.
17. [Omitted.]
18. [Disapplies Part I of the United Kingdom Trustee Act.]
SCHEDULE
(Made under section 2)
SCHEDULE CORPORATION
National Development Corporation.
National Housing Corporation.
Tanzania Finance Company Limited.
Tanzania Electric Supply Company Limited.
Permanent Housing Finance Company of Tanzania Limited.
Tanzania Tourist Corporation.
Omitted
Disapplication

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