SACCOS licensing in Tanzania: the GN 675 fundamentals
Two licence categories, not four — capital ratios, the 30 April audit deadline, COASCO, and a common misconception about self-regulation membership, sourced from the actual regulation text.
The legal basis
Tanzania's SACCOS sit in Tier 3 of the country's four-tier microfinance structure, under the Microfinance (Savings and Credit Cooperative Societies) Regulations, 2019 (GN No. 675 of 2019), made under the Microfinance Act, 2018. The regulation is formally issued by the Bank of Tanzania, with day-to-day licensing and supervision delegated to the Tanzania Cooperative Development Commission (TCDC) — TCDC's decisions under this delegation are, by the delegation notice's own terms, legally treated as the Bank's own act, and TCDC has a standing duty to report back to the Bank on delegated matters.
Only two licence categories exist — not four
GN 675 sets out Category A and Category B licences only. Online lists describing "Category A, B, C, and D" SACCOS licences do not match the regulation text and shouldn't be relied on.
Category A: minimum core capital TZS 10 million. Covers membership shares, savings from members, loans, and investments. Cannot open a branch.
Category B: minimum core capital TZS 200 million. Everything Category A can do, plus accepting deposits from members, loan participations with other SACCOS, microleasing, microinsurance as an agent, agent banking (with prior approval), equity investment, and debit cards. Can open branches, subject to approval.
A Category A SACCOS that grows past the Category B capital threshold can be directed to upgrade.
Regardless of category, SACCOS may not offer current accounts to non-members, take deposits from non-members, conduct forex or foreign trade business, hold trust operations, or issue credit cards or payment orders — those stay outside the SACCOS licence entirely.
Capital adequacy that applies to every SACCOS
- Core capital: at least 8% of total assets.
- Institutional capital: at least 6% of total assets.
- Net institutional capital: at least 6% of total assets.
- Liquid assets: at least 15% of members' deposits, savings, and short-term liabilities.
- External borrowing: capped at 25% of total assets.
A SACCOS falling short of these ratios must submit a capital restoration plan within 60 days.
Annual audit: the 30 April deadline
SACCOS accounts must be audited and submitted, with the audit report, within four months of the end of the financial year — for a 31 December year-end, that's 30 April.
COASCO audits an option, not a requirement
The Cooperative Audit and Supervision Corporation (COASCO) is one option among Bank/TCDC-approved auditors a SACCOS's general meeting can appoint — not the only one. COASCO does carry one practical advantage over other firms: other external auditors face a three-year rotation limit, while COASCO is exempt from that cap.
In August 2026, Tanzania's Vice President directed COASCO to intensify audits of cooperative societies as part of a broader accountability push. Older figures describing widespread "unhealthy" SACCOS accounts circulating online date to 2020, not the current period — treat any specific current statistic with caution unless it's tied to a dated, current source.
Monthly credit-reference reporting
SACCOS must submit credit information for existing and new credit facilities to credit reference bureaus monthly, with borrower consent obtained in writing before sharing.
A common misconception: TAMFI/TAMIU membership
Bank of Tanzania's Tier II self-regulation framework — requiring microfinance institutions to join TAMFI (Tanzania Association of Microfinance Institutions) or TAMIU (Tanzania Microfinance Institutions Union) — applies to Tier II institutions, not SACCOS. The Bank's own notice introducing this framework does not mention SACCOS or Tier 3 anywhere. Some secondary sources describe the requirement as covering SACCOS too; that doesn't match the primary notice, and a SACCOS shouldn't assume TAMFI/TAMIU membership is a licensing condition for it.