Government's domestic debt stock rose marginally to TZS 39,325.85 billion at the end of June 2026, up from TZS 39,257.3 billion in May 2026 and roughly triple the TZS 13,228.2 billion recorded in June 2018. Unlike external debt — which is dominated by multilateral and bilateral development partners — domestic debt is financed almost entirely by Tanzanian financial institutions and the Bank of Tanzania itself.

Commercial banks are the single largest creditor group, holding 28.8 percent (TZS 11,320.8 billion) of the domestic debt stock in June 2026, followed closely by pension funds at 26.4 percent (TZS 10,399.0 billion). The Bank of Tanzania itself holds 18.3 percent (TZS 7,197.1 billion) — largely through the overdraft facility extended to government — while insurance companies and BOT's special funds together add a further 7.2 percent. The remaining 19.2 percent sits with "other" holders: public institutions, private companies, individuals, and non-resident investors.

By instrument, government securities — dominated by Treasury bonds — account for 84.7 percent of the stock, with the government's overdraft facility with the central bank making up nearly all of the remaining 15.3 percent. This page walks through each of these breakdowns in detail, with the full underlying data tables from the Bank of Tanzania's July 2026 Monthly Economic Review.

Six categories of creditor hold Tanzania's government domestic debt. Commercial banks lead the field, edging up from 28.4 percent in May 2026 to 28.8 percent in June — the highest reading of the past year — as banks continue to treat government securities as a core, low-risk, liquid asset. Pension funds sit close behind at 26.4 percent, having eased slightly from a 26.6 percent peak in May, reflecting their structural role as long-duration buyers of Treasury bonds matched against long-term pension liabilities.

The Bank of Tanzania's own exposure — chiefly the overdraft facility used to smooth government cash-flow timing — has been trending down, from 20.2 percent in June 2025 to 18.3 percent in June 2026, even as the absolute overdraft balance rose (see the instrument breakdown below). Insurance companies hold a stable 5.1 percent, and BOT's special funds a small but rising 2.1 percent. The fastest-growing bucket is "Others" — public institutions, private companies, individuals and non-residents — up from 18.1 percent to 19.2 percent over the year, pointing to broadening retail and institutional participation in government securities.

Source: Ministry of Finance and Bank of Tanzania, Table 2.7.6, BOT Monthly Economic Review, July 2026.

Viewed as a 12-month trend, three patterns stand out: commercial banks' share has been the most volatile but ends the period at its highest point; the Bank of Tanzania's share has declined steadily; and the "Others" category has grown the most consistently, suggesting government securities are reaching an increasingly diverse investor base beyond the traditional banking and pension sector.

Alongside who holds the debt, it is worth seeing how it was raised. Government securities — Treasury bonds, Treasury bills, government stocks and tax certificates combined — made up 84.7 percent of the domestic debt stock in June 2026, with Government bonds alone accounting for 79.9 percent, confirming that Tanzania's domestic debt is overwhelmingly long-duration and market-based rather than short-term. The remaining 15.3 percent is non-securitized debt, almost entirely the overdraft facility with the Bank of Tanzania (TZS 6,011.4 billion in June 2026, up from TZS 5,314.0 billion a year earlier).

Source: Ministry of Finance and Bank of Tanzania, Table 2.7.5, BOT Monthly Economic Review, July 2026.

Tanzania's domestic debt stock has nearly tripled since June 2018, rising from TZS 13,228.2 billion to TZS 39,325.8 billion in June 2026. Growth accelerated sharply between June 2020 and June 2023 — a period that coincided with pandemic-related fiscal pressure and a deliberate policy shift toward deepening the domestic securities market — before moderating to single-digit annual growth over the past two years.

Source: Ministry of Finance, Chart 2.7.1, BOT Monthly Economic Review, July 2026.

In June 2026 alone, government mobilised TZS 468 billion from the domestic market through new security issuance — TZS 273.3 billion in Treasury bonds and TZS 194.7 billion in Treasury bills. Against this, domestic debt service payments totalled TZS 1,551.5 billion, comprising TZS 1,264.4 billion in principal repayments and TZS 287.1 billion in interest — a reminder that gross issuance each month is substantially smaller than the roll-over and interest burden the stock already carries.