Draft regulations from the Bank of Tanzania have landed on the desks of bankers and boardrooms, setting the stage for a major shift in how the country’s lenders are run. The proposed Banking and Financial Institutions (Corporate Governance) Regulations, 2026, now open for public comment until October 28, 2026, would force banks to rotate their top leadership after a decade. The Zawya regulatory report lays out the details.
The draft regulations also prohibit any individual from simultaneously serving on the board or in executive management of more than one Tanzanian bank or financial institution, unless specifically authorized by the Bank of Tanzania and only in the absence of a conflict of interest.
The draft also raises the minimum board size from five to seven directors. Most must be non-executive, and at least two-thirds of those must be independent. The rules call for expertise in banking, finance, accounting, auditing, law, economics, cyber security or ICT. At least two board members must be Tanzanian nationals.
To keep power from pooling in a few hands, the Bank of Tanzania bars anyone from holding board or executive roles at more than one bank or financial institution, unless the regulator signs off and no conflict exists. Banks will have six months to comply once the rules are in force. A Legal Update on regulatory changes notes that draft cybersecurity guidelines are also on the table for 2026, making boards responsible for cyber risks and requiring major incidents to be reported within 24 hours through the TZ-FinCERT platform.
Kenya, by contrast, has no formal term limits for bank CEOs. Some have held the top job for over twenty years. The Central Bank of Kenya has only recently suggested a nine year cap for bank chairmen, with new rules starting in 2027. These require chairpersons to be independent non-executive directors, not to have served as executives in the previous five years, and to own no more than five percent of the bank.
On a regional level, African Development Bank President Akinwumi Adesina in October 2026 emphasized the importance of succession planning and building leadership pipelines, warning that institutions should not become dependent on individual executives.
The Bank of Tanzania’s draft rules demand more than just compliance. Board members and executives must show honesty, integrity, diligence, competence, financial soundness, and independence of mind. The regulator wants to break up entrenched leadership and make sure banks are run by people with the right skills to manage risk and protect depositors and the economy.
With clear limits on tenure and stricter board requirements, Tanzania is setting a new standard for banking governance in the region. If adopted, the rules will force banks to rethink succession and diversify leadership. In East Africa, where some executives have held power for decades, Tanzania’s move stands out. The regulations will take effect once finalized and published by the Bank of Tanzania.
