Credit Reference Bureaus and Mortgage Performance in Tanzania: Evidence from Commercial Banks

The introduction of Credit Reference Bureaus (CRBs) in Tanzania was intended to enhance credit risk management, reduce non-performing loans (NPLs), and improve overall credit market performance. While existing literature has extensively examined the role of credit information sharing on general credit outcomes, limited empirical evidence exists on the contribution of CRBs to mortgage performance in Tanzania. This study analyzes the contribution of CRBs to mortgage performance by comparing key performance indicators before and after the adoption of CRBs, assessing the legal and regulatory framework governing CRBs, and evaluating the level of compliance by financial institutions. The study adopts a qualitative case study approach, drawing primary data from semi-structured interviews conducted with senior credit officers, loan officers, and credit analysts from selected commercial banks, as well as operators of licensed Credit Reference Bureaus. Secondary data were obtained from banks' annual reports, regulatory publications, and mortgage market reports issued by the Bank of Tanzania and the Tanzania Mortgage Refinance Company. Data was analyzed using thematic and content analysis techniques. The findings indicate that although mortgage holdings in Tanzania increased at an average rate of approximately 7 percent following the adoption of CRBs, the contribution of CRBs to mortgage performance remains limited. Mortgage non-performing loans continued to rise during the post-adoption period while mortgage returns declined, largely due to persistent data inaccuracies, multiple borrower identification issues, and low confidence among banks in CRB credit reports. The study further finds that financial institutions demonstrate full regulatory compliance with CRB requirements, but structural and legal constraints reduce the effectiveness of CRBs. The study concludes that while CRBs possess significant potential to improve mortgage market performance in Tanzania, their impact remains constrained by regulatory gaps and operational challenges. Policy recommendations include strengthening the legal framework governing CRBs, improving data accuracy and borrower identification systems, and enhancing supervisory support to improve the effectiveness of credit information sharing. A peer-reviewed version of this manuscript was published in World Journal of Advanced Research and Reviews, Vol. 29(02), 2026, pp. 616–622.