Until recently, the answer was uncertain, impractical, or legally cumbersome for many Tanzanians. Today, however, the cure appears to have arrived, the introduction of the Movable Property Security Interests Bill, 2026 (the “Bill”), signals a significant shift in Tanzania’s secured lending framework, the Bill seeks to unlock the hidden wealth embedded in everyday assets by creating a modern legal regime that allows movable property to be used as collateral for credit facilities. Under the proposed framework, assets such as motor vehicles, motorcycles, mobile phones, laptops, livestock, agricultural produce, equipment, inventory, and even listed shares may become legally recognizable forms of security. Since for many years, access to credit in Tanzania has largely depended on one question, do you own land or a building? While this approach has provided comfort to lenders, it has simultaneously excluded thousands of entrepreneurs, farmers, transport operators, and small business owners from formal financing.

1. Position Before the Bill

Before the introduction of the Bill, lenders predominantly relied on immovable property, particularly land, houses, and commercial buildings, as collateral for lending transactions. Consequently, many borrowers who lacked title deeds or registered real property faced significant challenges in accessing credit regardless of the value of the movable assets they owned.

This traditional model disproportionately affected Small and Medium Enterprises (SMEs), farmers, livestock keepers, and young entrepreneurs whose wealth is commonly invested in movable assets rather than land. Consequently, a significant portion of Tanzania’s economically active population remained outside the formal credit system despite possessing assets capable of generating value and supporting economic growth.

2. What the Movable Property Security Interests Bill, 2026 Brings

The Bill introduces a comprehensive legal framework for the creation, registration, management, and enforcement of security interests in movable property, the Bill is divided into several Parts, each addressing a critical aspect of the secured transactions regime.

A particularly significant innovation is contained in Part Two, which establishes the institutional role of the Bank of Tanzania (BoT) in relation to security interests in movable property, the BOT is entrusted with administrative and supervisory functions necessary for the operation of the system.

Most importantly, the Bill introduces a Collateral Registry to be maintained under the authority of the BOT, this registry will record security interests in movable assets and enable lenders and members of the public to conduct searches regarding pledged property. The registry addresses the longstanding problem of the same asset being used as collateral for multiple loans without the knowledge of subsequent lenders.

The Bill further broadens the categories of acceptable collateral by recognizing both tangible and intangible movable property and eligible assets to include:

• motor vehicles (Cars, buses, three wheelers/bajaji, trucks, lorries )
• machinery
• livestock
• agricultural produce
• electronic devices
• business equipment
• shares
• and other forms of movable property recognized under the law,

In addition, the Bill establishes rules governing the priority of competing security interests and provides enforcement mechanisms that allow creditors to realize collateral in cases of default. These provisions are intended to enhance certainty and confidence within the lending environment.

3. Potential Impact of the Bill

The impact of this legislation is likely to extend far beyond the banking sector. First, it is expected to significantly increase access to credit by enabling individuals and businesses to leverage assets they already possess. Farmers may utilize livestock and crops, transport operators may use vehicles, and entrepreneurs may secure financing using machinery and business equipment.

Secondly, the Bill has the potential to strengthen the growth of SMEs, which constitute a substantial portion of Tanzania’s economy. Easier access to finance can facilitate business expansion, improve productivity, create employment opportunities, and stimulate innovation.

4. Concluding Observations

The Bill is a progressive reform that challenges the traditional perception that only land and buildings can serve as reliable collateral. By recognizing the economic value of movable assets and creating a structured legal framework for their use in secured lending, the Bill opens a new pathway to financial inclusion and economic empowerment. If effectively implemented, this legislation may be remembered as one of the most transformative commercial law reforms in recent years, not merely because it changes the law of collateral, but because it expands opportunity, empowers entrepreneurs, and unlocks the economic potential of countless Tanzanians.