A rigorous breakdown of Tanzania's TZS 38.78 trillion domestic debt stock as of February 2026 — analysing the creditor landscape: commercial banks, pension funds, the Bank of Tanzania, insurance firms, and the broader market. Sourced from Bank of Tanzania official data.
Tanzania's domestic government debt is held across five major creditor groups. Commercial banks and pension funds collectively account for over 54 percent of all domestic obligations, making them the principal financiers of the government's domestic borrowing programme. The Bank of Tanzania maintains a significant monetary financing role at 19.3 percent.
| Creditor | Feb-25 (TZS B) | Feb-25 Share | Jan-26 (TZS B) | Jan-26 Share | Feb-26 (TZS B) | Feb-26 Share | YoY Change (TZS B) | YoY Δ Share (pp) |
|---|---|---|---|---|---|---|---|---|
| 🏦 Commercial Banks | 9,791.4 | 28.8% | 10,902.5 | 28.2% | 10,834.3 | 27.9% | +1,042.9 | −0.9pp |
| 🏛️ Pension Funds | 9,097.2 | 26.7% | 10,389.5 | 26.9% | 10,463.9 | 27.0% | +1,366.7 | +0.3pp |
| 🏧 Bank of Tanzania | 6,847.5 | 20.1% | 7,436.0 | 19.3% | 7,468.4 | 19.3% | +620.9 | −0.8pp |
| 🛡️ Insurance Companies | 1,852.3 | 5.4% | 2,005.0 | 5.2% | 1,983.5 | 5.1% | +131.2 | −0.3pp |
| 🏢 BOT Special Funds | 552.7 | 1.6% | 737.8 | 1.9% | 757.8 | 2.0% | +205.1 | +0.4pp |
| 🌐 Others | 5,872.8 | 17.3% | 7,128.9 | 18.5% | 7,273.8 | 18.8% | +1,401.0 | +1.5pp |
| 📋 TOTAL DOMESTIC DEBT | 34,014.1 | 100% | 38,599.6 | 100% | 38,781.7 | 100% | +4,767.6 | — |
The instrument breakdown reveals a strong preference for long-term Treasury bonds, which now constitute over 80 percent of the domestic debt portfolio. This reflects the government's deliberate strategy to reduce rollover risk and extend the maturity profile of its domestic obligations — a favourable development for debt sustainability.
| Instrument | Feb-25 (TZS B) | Feb-25 Share | Jan-26 (TZS B) | Jan-26 Share | Feb-26 (TZS B) | Feb-26 Share | YoY Change (TZS B) |
|---|---|---|---|---|---|---|---|
| Government Securities | 29,108.2 | 85.6% | 32,972.3 | 85.4% | 33,122.0 | 85.4% | +4,013.8 |
| Treasury Bills | 1,847.4 | 5.4% | 1,821.4 | 4.7% | 1,653.0 | 4.3% | −194.4 |
| Government Stocks | 187.1 | 0.6% | 135.7 | 0.4% | 135.7 | 0.4% | −51.4 |
| Government Bonds | 27,073.7 | 79.6% | 31,015.1 | 80.4% | 31,333.2 | 80.8% | +4,259.5 |
| Tax Certificates | 0.1 | 0.0% | 0.1 | 0.0% | 0.1 | 0.0% | 0.0 |
| Non-Securitised Debt | 4,905.9 | 14.4% | 5,627.3 | 14.6% | 5,659.7 | 14.6% | +753.8 |
| Overdraft (BoT) | 4,887.5 | 14.4% | 5,627.2 | 14.6% | 5,659.6 | 14.6% | +772.1 |
| Other Liabilities | 18.4 | 0.1% | 0.0 | 0.0% | 0.0 | 0.0% | −18.4 |
| 📋 TOTAL (excl. liquidity papers) | 34,014.1 | 100% | 38,599.6 | 100% | 38,781.7 | 100% | +4,767.6 |
Tanzania's domestic debt has grown from TZS 13.74 trillion in February 2018 to TZS 38.78 trillion in February 2026 — a 182 percent increase over eight years. This section tracks the trajectory of the domestic debt stock and the evolution of creditor composition over time, with particular attention to the growing role of pension funds.
| Creditor | Feb-25 (TZS B) | Feb-26 (TZS B) | Absolute Change (TZS B) | Growth Rate (%) | Share Feb-25 | Share Feb-26 | Share Δ (pp) |
|---|
TICGL's independent interpretation of Tanzania's February 2026 domestic debt creditor data — highlighting structural trends, investment implications, and policy risks.
1. Pension Funds Overtaking Commercial Banks as Dominant Creditors. The gap between commercial bank holdings (27.9%) and pension fund holdings (27.0%) has narrowed sharply over the review period. In February 2025, commercial banks held 28.8% versus pension funds' 26.7% — a gap of 2.1 percentage points. By February 2026, the gap has compressed to just 0.9 percentage points. At current trends, pension funds are positioned to become Tanzania's largest domestic creditor within 12–18 months. This structural shift has important implications for investment regulation, duration management, and the broader pension sector's exposure to sovereign risk.
2. BoT Overdraft Growth Demands Monitoring. The Bank of Tanzania's overdraft to the government stands at TZS 5,659.6 billion — a TZS 772.1 billion increase year-on-year. This form of quasi-monetary financing, while institutionally managed, can create inflationary pressure if sustained at elevated levels. The TZS 5.66 trillion overdraft now represents 14.6% of total domestic debt, unchanged from January 2026 but materially higher than historical averages. Investors should track this figure closely as a proxy for fiscal pressure on the central bank.
3. Treasury Bond Dominance Signals Improved Debt Structure. Government bonds now account for 80.8% of all domestic debt (up from 79.6% in Feb-25), reflecting the Treasury's continued preference for long-duration instruments. The near-elimination of short-term T-Bills in the financing mix (T-Bills fell from 5.4% to 4.3% of total debt year-on-year) reduces rollover risk and aligns the domestic debt profile with international best practices for debt sustainability.
4. "Others" Category Expanding — A Diversification Signal. The "Others" creditor group — comprising public institutions, private companies, individuals, and non-residents — grew its share from 17.3% (Feb-25) to 18.8% (Feb-26), adding TZS 1.4 trillion in holdings year-on-year. This is the fastest-growing creditor category in absolute terms, likely reflecting increased retail and non-resident participation in Tanzania's domestic bond market. TICGL views this as a positive diversification trend, reducing the government's reliance on captive institutional buyers.
5. Insurance Sector's Declining Share — A Regulatory Watch Point. Insurance companies' share declined from 5.4% to 5.1% year-on-year. While absolute holdings grew slightly (TZS 1,852B to TZS 1,984B), the relative decline suggests insurance firms may be rebalancing their portfolios away from government securities — potentially toward equities or real estate. Regulators and policymakers should monitor whether this trend reflects portfolio diversification (healthy) or liquidity stress (concerning) within the insurance sector.