A forensic breakdown of Tanzania's commercial bank rate structure — what borrowers pay, what savers earn, and what the spread between them tells investors about the cost of capital in Tanzania's evolving financial landscape.
In February 2026, commercial banks' interest rates remained broadly stable. The overall lending rate held near 15.11%, while deposit rates inched upward — compressing the interest spread to its narrowest level in recent months. Below is the full rate landscape as reported by the Bank of Tanzania.
Tanzania's overall lending rate has trended gradually downward over the past year — from 15.14% in February 2025 to 15.11% in February 2026. While the decline is modest, the trend in negotiated rates (from 13.42% to 12.19%) signals meaningful credit cost improvement for qualifying borrowers.
Tanzania's deposit rate landscape shows a wide range depending on tenure and negotiation power. From as low as 2.98% on savings accounts to 11.48% on negotiated deposits, the spread in deposit rates itself reflects significant opportunity for sophisticated depositors and institutional investors.
With headline inflation at 3.2% in February 2026, Tanzania's deposit market offers genuinely positive real returns across most tenors. A 12-month time deposit at 9.82% delivers a real return of approximately +6.62% after inflation — among the most attractive in East Africa. Negotiated deposit rates at 11.48% yield a real return of +8.28%. This stands in stark contrast to many global markets where real deposit returns remain near zero or negative. For institutional investors and corporate treasury managers, Tanzania's deposit market presents a compelling case for TZS-denominated cash management.
The interest rate spread — the difference between what banks charge borrowers and what they pay depositors — is a key measure of banking sector efficiency and financial inclusion. Tanzania's short-term spread narrowed from 6.29pp in February 2025 to 5.59pp in February 2026, a positive sign, but still elevated compared to mature markets.
The full rate structure across short, medium, and long-term tenors for both lending and deposits — essential data for loan pricing, investment modeling, and financial planning in Tanzania.
Negotiated rates represent the terms available to the most creditworthy borrowers and largest depositors. Tracking the trajectory of negotiated rates reveals the directional bias of bank pricing policy — and the premium paid by smaller, less-connected borrowers.
The difference between the overall lending rate (15.11%) and the negotiated rate for prime borrowers (12.19%) is 296 basis points — representing the "creditworthiness premium" that smaller or riskier borrowers pay in Tanzania. This gap has been narrowing: in January 2025 it stood at 293bp (15.73% vs 12.80%), suggesting that credit risk differentiation is becoming slightly tighter. For TICGL-advised clients, securing negotiated lending terms can save significant financing costs on large-scale investments.
All data sourced from Bank of Tanzania Table A4 (Interest Rates Structure). All values are percentages per annum.
| Rate Category | Feb-25 | Mar-25 | Apr-25 | May-25 | Jun-25 | Jul-25 | Aug-25 | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | YoY Change |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Overall Lending Rate | 15.14 | 15.50 | 15.16 | 15.18 | 15.23 | 15.16 | 15.07 | 15.18 | 15.19 | 15.27 | 15.24 | 15.10 | 15.11 | ▼ -0.03pp |
| Short-Term (≤1 year) | 15.77 | 15.83 | 16.15 | 15.96 | 15.69 | 15.51 | 15.64 | 15.52 | 15.50 | 15.53 | 15.46 | 15.49 | 15.41 | ▼ -0.36pp |
| Medium-Term (1–2 years) | 16.06 | 16.56 | 16.33 | 16.35 | 16.49 | 16.41 | 16.45 | 16.26 | 16.42 | 16.42 | 16.42 | 16.73 | 16.70 | ▲ +0.64pp |
| Medium-Term (2–3 years) | 15.53 | 16.44 | 15.25 | 15.24 | 15.38 | 15.22 | 15.01 | 15.19 | 15.13 | 15.18 | 15.43 | 14.97 | 15.27 | ▼ -0.26pp |
| Long-Term (3–5 years) | 14.09 | 14.32 | 13.88 | 14.19 | 14.35 | 14.39 | 14.02 | 14.26 | 14.24 | 14.43 | 14.29 | 14.05 | 13.95 | ▼ -0.14pp |
| Term Loans (>5 years) | 14.25 | 14.36 | 14.19 | 14.17 | 14.25 | 14.28 | 14.22 | 14.66 | 14.68 | 14.79 | 14.61 | 14.24 | 14.20 | ▼ -0.05pp |
| Negotiated Lending Rate | 13.42 | 12.94 | 12.88 | 12.99 | 12.68 | 12.56 | 12.72 | 12.84 | 12.40 | 12.61 | 12.38 | 12.25 | 12.19 | ▼ -1.23pp |
| Rate Category | Feb-25 | Mar-25 | Apr-25 | May-25 | Jun-25 | Jul-25 | Aug-25 | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | YoY Change |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Savings Deposit Rate | 2.98 | 2.86 | 2.89 | 2.52 | 2.90 | 2.90 | 2.90 | 2.92 | 2.93 | 2.88 | 3.02 | 2.94 | 2.98 | ━ Unchanged |
| Overall Time Deposit Rate | 8.13 | 8.00 | 7.82 | 8.58 | 8.74 | 8.83 | 8.61 | 8.50 | 8.36 | 8.54 | 8.36 | 8.33 | 8.32 | ▲ +0.19pp |
| 1-Month Time Deposit | 9.90 | 9.88 | 7.94 | 10.47 | 9.90 | 11.50 | 10.70 | 9.65 | 9.10 | 9.31 | 9.35 | 8.96 | 9.10 | ▼ -0.80pp |
| 2-Month Time Deposit | 9.02 | 8.81 | 8.78 | 9.25 | 9.85 | 10.75 | 10.07 | 9.28 | 10.09 | 9.67 | 9.34 | 9.56 | 9.16 | ▲ +0.14pp |
| 3-Month Time Deposit | 9.24 | 9.42 | 9.43 | 9.85 | 11.12 | 10.19 | 8.59 | 9.61 | 9.38 | 9.42 | 9.70 | 9.43 | 9.03 | ▼ -0.21pp |
| 6-Month Time Deposit | 9.40 | 9.68 | 9.36 | 9.82 | 10.28 | 10.28 | 10.44 | 10.12 | 10.06 | 10.01 | 9.96 | 10.20 | 10.26 | ▲ +0.86pp |
| 12-Month Deposit Rate | 9.48 | 8.14 | 9.27 | 9.72 | 9.79 | 9.88 | 9.99 | 9.84 | 9.21 | 10.02 | 9.58 | 9.70 | 9.82 | ▲ +0.34pp |
| 24-Month Deposit | 6.94 | 6.90 | 6.66 | 7.49 | 6.95 | 5.99 | 7.16 | 7.63 | 7.05 | 7.92 | 7.21 | 7.11 | 7.35 | ▲ +0.41pp |
| Negotiated Deposit Rate | 11.40 | 10.35 | 10.52 | 10.64 | 11.21 | 10.72 | 10.99 | 11.05 | 11.22 | 11.67 | 11.66 | 11.74 | 11.48 | ▲ +0.08pp |
| Rate / Indicator | Feb-25 | Mar-25 | Apr-25 | May-25 | Jun-25 | Jul-25 | Aug-25 | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Short-Term Spread (pp) | 6.29 | 7.69 | 6.88 | — | — | — | — | — | — | — | 5.88 | 5.79 | 5.59 |
| Central Bank Rate (CBR) | 5.30 | 5.30 | 5.30 | 5.30 | 5.30 | 5.30 | 5.30 | 4.79 | 4.79 | 4.79 | 5.75 | 5.75 | 5.75 |
| Lombard Rate | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 | 7.75 |
| Discount Rate | 8.50 | 8.50 | 8.50 | 8.50 | 8.50 | 8.25 | 8.25 | 8.25 | 8.25 | 8.25 | 8.25 | 8.25 | 8.25 |
| Overall T-Bill Rate | 11.93 | 10.10 | 8.86 | 8.89 | 8.89 | 8.13 | 6.83 | 6.03 | 6.27 | 6.25 | 5.87 | 5.89 | 5.68 |
| 7-Day IBCM Rate | 8.02 | 8.12 | 8.00 | 7.98 | 7.94 | 7.35 | 6.48 | 6.45 | 6.38 | 6.30 | 6.29 | 6.40 | 6.34 |
Note: Short-term spread = Short-term lending rate (≤1yr) minus 12-month deposit rate. CBR = Central Bank Rate set by Monetary Policy Committee. Source: Bank of Tanzania Table A4 & Table 2.3.1.
TICGL's interpretation of the rate landscape for borrowers, investors, depositors, and businesses operating in or entering Tanzania in 2026.
Three dynamics will shape Tanzania's interest rate environment through the remainder of 2026: (1) CBR direction — the MPC held at 5.75% for Q1 2026; any future cut would accelerate lending rate compression; (2) T-Bill yield floor — at 5.68%, Treasury bill rates are near the CBR floor, limiting further decline and setting a minimum for bank deposit pricing; (3) Private sector credit demand — with credit growing at 24.4%, rising loan demand could provide upward pressure on lending rates, counteracting monetary easing. Net effect: rates likely to remain broadly stable in 2026, with negotiated rates continuing their gradual downward trend.