KARATU District Commissioner, Dadi Kolimba, has urged residents to utilise registered financial institutions that comply with laws and regulations to avoid unregistered service providers.

Speaking here yesterday during a visit by a team of experts from the Ministry of Finance to Karatu District, Arusha Region, Kolimba emphasised the importance of financial education for citizens in line with the government's directive to empower citizens with financial knowledge.

Kolimba highlighted ongoing complaints about some institutions offering loans without adhering to legal requirements, which   resulted in the loss of collateral by borrowers.

“We have engaged financial service providers in the district, emphasising that their loans should not harm borrowers. Any violations will result in legal action. I urge residents to use formal financial services to avoid exploitative loans,” he stated.

He added that the education campaign aims to help citizens understand their rights and the responsibilities of lenders, including interest rates and loan terms, before taking loans.

“I commend the government for ensuring its implementation. This programme will help citizens address economic challenges,” Kolimba said.

He also advised borrowers to involve their spouses when taking loans to foster cooperation in case of repayment challenges and avoid family disputes.

Stanley Kibakaya,   financial management officer at the Ministry of Finance, explained that the programme seeks to educate citizens and encourage the use of formal financial services.

In Karatu, the initiative targets traders, workers, financial service providers, microfinance promoters, tourism stakeholders, and beneficiaries of the 10 percent municipal loans.

“The third phase of this financial education programme began in January 2025 and will cover Arusha, Kilimanjaro, Mwanza and Mara regions,” Kibakaya said.

He noted that the programme aligns with the Financial Sector Development Master Plan 2020/21–2029/30, aiming to reach 80 percent of citizens by 2025/26.

The team plans to visit areas in Karatu, including Endabash, Mang’ola, Baray, Rhotia Kati and Mbulumbulu. Topics will include personal financial management, savings, loans, insurance, investments, and retirement planning.

The first phase, which began in May 2024, reached 12 regions and 62 municipalities, targeting diverse groups such as entrepreneurs, public and private employees, farmers, students, microfinance promoters, and financial service providers.