Tanzania clarifies land rent rules: six-month grace period before interest applies
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Tanzania's Deputy Minister for Lands, Housing and Human Settlements Development has clarified that landowners get a six-month grace period to pay annual land rent before interest is charged, at 0.5 per cent per month.
Tanzania has clarified the rules governing interest on land rent, telling landowners they have six months from the due date to settle their annual obligations before interest is imposed.
Deputy Minister for Lands, Housing and Human Settlements Development, Kaspar Mmuya, told the National Assembly in Dodoma that land rent becomes due on July 1 at the beginning of each government financial year and applies throughout the period of land ownership.
Mmuya was responding to a question from Tinnar Chenge (Special Seats, CCM), who asked why interest on land rent starts being charged from January rather than at the beginning of the financial year.
He cited Section 35(11) of the Land Act, Cap 113, which provides that where land rent is not paid within six months after it becomes due, interest is charged at 0.5 per cent per month on the outstanding amount. Where rent remains unpaid for more than 12 months, the rate increases to one per cent per month.
Mmuya said Parliament amended the relevant provision in 2025, reducing the applicable interest rate to 0.5 per cent per month to keep the charge manageable for landowners while maintaining an incentive to comply. He added that land value, used in determining fees and charges, is recognised under the National Land Policy of 1995, 2023 edition.
He urged landowners to check their land rent status and settle outstanding obligations before the expiry of the six-month grace period to avoid additional interest charges, noting that the Commissioner for Lands has the mandate to oversee collection.