Shinyanga citizens hit by Sh150,000 broker fees for free municipal loans

Shinyanga. Citizens seeking 10 percent municipal loans in Shinyanga are allegedly being charged up to Sh150,000 by private individuals to help them complete online forms and register on the electronic portal, a burden for groups needing capital for economic activities.

The concern was raised during the Shinyanga Municipal Full Council meeting, where civic leaders demanded enhanced public education to prevent the digital registration process from being exploited by middleman brokers.

Special Seats Councillor for Ibadakuli Division, Ms Zuhura Waziri, noted that several applicant groups have been forced to hire private individuals to navigate the online system, paying exorbitant fees that eat into their limited capital.

"It is critical that citizens receive proper training so they can register and apply for these loans independently, without incurring heavy costs from third parties," said Ms Waziri.

Echoing her concerns, council members urged the Community Development Department to step up outreach programmes to guide youth, women, and persons with disabilities through the portal's procedures.

Responding to the concerns, Shinyanga Municipal Community Development Officer, Ms Salome Komba, acknowledged the issue and assured the council that measures are being implemented to support applicants.

She revealed that the municipality has allocated funds in its budget to purchase electronic devices, including computers and tablets, for Community Development Officers to assist group members with registration directly in their wards.

"This initiative aims to bridge the digital skills gap, ensure direct access to the portal, and protect citizens from unnecessary fees during the application process," said Ms Komba.

Representing the Shinyanga Regional Administrative Secretary (RAS), Mr Adonias Namjulirwa, called on local leaders and municipal staff to maintain strict supervision of internal revenue collection to fund development projects and improve public service delivery.