Zanzibar Minister Praises BoT, DIB for Handling FBME Liquidation
Dar es Salaam, Tanzania – Dr. Saada Mkuya Salum, Zanzibar’s Minister of State, Finance, and Planning, has commended the Bank of Tanzania (BoT) and the Deposit Insurance Board (DIB) for their efforts in mitigating the impact on former customers of FBME Bank, which was closed in 2017.
Speaking yesterday, July 30, 2025, at the official launch of the BoT’s Integrated Core Banking System (iCBS) in Dar es Salaam, Dr. Mkuya expressed the Zanzibar Revolutionary Government’s satisfaction that 55% of FBME customers’ claims have already been paid. She also noted that efforts are ongoing to recover more funds for further reimbursements.
“As you are aware, 60% of FBME’s customers in the country were from Zanzibar, and we are now pleased that 55% of their claims have been settled, with continued efforts to recover additional funds,” Dr. Mkuya stated, commending the DIB and BoT for their work.
FBME’s license was revoked by the BoT in 2017, and the bank was subsequently handed over to the DIB for liquidation. This ongoing liquidation process, involving both Tanzania and Cyprus where the bank had a branch, has so far recovered 55% of the claims for former FBME customers who held deposits exceeding the insured amount of Tsh 1,500,000 at the time.
Payout Details
Mr. Isack Kihwili, Director of the DIB, recently explained that the 55% payout was achieved in two phases: an initial 30% payment totaling Tsh 10,563.89 million, followed by a second payment of 25%, amounting to Tsh 8,991.75 million.
As of May 2025, out of 1,414 customers, a total of 968 customers have received their first-phase payment of Tsh 9,137.77 million, representing 86.5% of the funds. For the second 25% phase, 960 customers have been paid, receiving Tsh 7,566.61 million, which is 86.0% of the recovered funds.
“The number of customers who have not yet received the 30% liquidation compensation for various reasons as of May 2025 is 446, with total claims amounting to Tsh 1,425.14 million,” Mr. Kihwili stated. Additionally, as of May 2025, 454 customers (32%) have not received the 25% liquidation compensation for various reasons, with their total claims amounting to Tsh 1,235.81 million (14%).