By The Arusha News Reporter
Arusha Regional Commissioner (RC), Mr Kenani Kihongosi, has called on women, youth and persons with disabilities who have received interest-free loans from local government authorities to repay them promptly to allow other persons to also benefit.
Speaking in Dodoma recently during a press briefing on the achievements of the Sixth Phase Government under President Samia Suluhu Hassan, Mr Kihongosi said loan repayment remains a major challenge for some beneficiaries despite the funds being drawn from taxpayers’ money.
“It is the responsibility of every beneficiary to ensure the funds are returned so they can be reallocated to other groups still waiting for the opportunity,” he stressed.
Over the past four years, the number of groups accessing the loans in Arusha Region has risen sharply from 721 in 2021 to 1,380 in 2025. The loans, issued under the 10 per cent internal revenue allocation guideline, are interest-free and aim to empower vulnerable groups.
Among notable success stories, the UsaRiver youth group secured Sh 100 million from the Meru District Council to buy a mini-bus for transport business, while a women’s livestock keepers group in Arusha District used Sh 35 million loan to establish a bakery.
The total loan value disbursed in the region has more than quadrupled, jumping from Sh 3.08 billion in 2021 to TSh 13.55 billion in 2025.
Mr Kihongosi also said that Arusha Region has received Sh 57.22 billion from the Tanzania Social Action Fund (TASAF), with Sh 38.39 billion directly reaching beneficiaries through cash transfers and Sh 18.82 billion used for community infrastructure projects.
Meanwhile, internal revenue collection for local authorities has increased from Sh 34.63 billion in 2020/21 to Sh 110.12 billion in 2024/25 — a 318 per cent rise — thereby enhancing the councils’ ability to fund and implement development projects independently.
