FBME CUSTOMERS TO RECEIVE 100 PERCENT OF THEIR DEPOSITS

          Mr.  Isack Kihwili, Director General of the Deposit Insurance Board (DIB)

FBME CUSTOMERS TO RECEIVE 100 PERCENT OF THEIR DEPOSITS

By Thadei Hafigwa

The Deposit Insurance Board (DIB) has begun the process of paying the fourth phase of compensation to Tanzanian customers who held deposits with the former FBME Bank Limited, a move that will complete the repayment of 100 percent of their deposits.

This was revealed by Isack Kihwili, Director General of the Deposit Insurance Board (DIB), while speaking to journalists in Morogoro about the progress of compensation payments to customers of the bank.

According to Kihwili, FBME Bank Limited was closed by the Bank of Tanzania (BOT) on May 8, 2017, and placed under liquidation after it was established that the bank had engaged in activities that violated the conditions of its banking licence.

Following the closure, the Bank of Tanzania appointed the Deposit Insurance Board as the liquidator of the bank in accordance with the Banking and Financial Institutions Act, 2006.

Kihwili said a total of 2,280 customers who had deposits of more than TSh 1.5 million at the time the bank was closed had claims against FBME.

He explained that among them, 1,414 were Tanzanian customers, whose claims amounted to TSh 35,233.95 million, while 866 international customers who held accounts in Tanzania had claims valued at TSh 308,216.62 million.

Kihwili said that as of June 30, 2026, Tanzanian customers had already received 85 percent of their deposits through three previous phases of compensation.

Journalists attentively listening to the General Director of deposit Insurance Board(DIB) Mr.Isack Kihwili(not at photo)

He said the first phase involved payment of 30 percent, the second phase 25 percent, and the third phase 30 percent.

According to the DIB, as of June 30, 2026, a total of 986 customers, equivalent to 69.73 percent of the 1,414 claimants, had received compensation amounting to 85 percent of their deposits, valued at TSh 26,021.09 million out of a total of TSh 29,928.23 million.

However, 428 customers, equivalent to 30.27 percent of the claimants, had not yet been paid. Their claims were valued at TSh 3,907.14 million.

The DIB said one of the major reasons some customers had not been paid was their failure to submit their claims.

Speaking about the current phase of the process, Kihwili said the DIB had successfully collected sufficient funds to pay the remaining 15 percent of the deposits, following efforts to trace and recover assets belonging to the former FBME Bank.

He said the DIB convened a meeting of the Creditors’ Committee on July 29, 2026, to approve the payments and, following the approval, had already begun the payment process for the affected customers.

Kihwili said completion of the payments would mean that Tanzanian customers who had deposited their money with FBME Bank Limited would have received 100 percent of their deposits. While the process of completing payments to Tanzanian customers is underway, the DIB continues to address the claims of other customers.

According to the statement, the DIB, in collaboration with the Liquidator of the Cyprus Branch, continues to recover FBME assets to facilitate payments to depositors who have not yet been compensated. These include international customers and customers of the Cyprus branch, as well as other creditors in accordance with the law.

Kihwili urged members of the public to continue placing their deposits with banks and financial institutions licensed by the Bank of Tanzania, noting that deposits held in such institutions are protected under the deposit insurance scheme in accordance with the law.

The DIB also expressed its appreciation to FBME customers for their patience throughout the liquidation process, as well as to the Government for its cooperation, advice and guidance, which have contributed to reaching the current stage of the process.