What should be checked before a warehouse lease in Tanzania? Eight things: the owner's title and official search; truck access and turning space; floor load, eaves height and roof; three-phase power and water; fire and OSHA compliance; whether the building is, or can be, bonded or licensed under the warehouse receipt system; the permitted use; and lease terms on rent, repairs, insurance and exit. Stamp duty on the lease is 1% of annual rent.
What the law and the regulators require
A warehouse lease is a lease of land and buildings under the Land Act, Cap. 113, registrable at the Registrar of Titles, with stamp duty at 1% of the annual reserved rent for leases of any duration (register ID F0478). The premises must meet the Occupational Safety and Health Act, Cap. 297, with registration and the annual OSHA inspection fee scaled by size and sector (register ID F0442), and the Fire and Rescue Force's requirements for fire certificates. A warehouse that stores goods under customs control needs a bonded warehouse licence from the Tanzania Revenue Authority under the East African Community Customs Management Act, with an annual fee of USD 1,500 (register ID NEW-03-23) and security of at least TZS 500 million for a private bond or TZS 1 billion for a public bond (register IDs F0347, F0348).
A warehouse that will issue warehouse receipts for crops or commodities is licensed by the Warehouse Receipts Regulatory Board under the Warehouse Receipts Act, 2005: application TZS 20,000 and an operation licence at TZS 200 per tonne of capacity (register ID NEW-07-15).
Who should read this
Exporters, importers, distributors and contractors who need covered space in the Dar es Salaam port corridor, Kibaha, Morogoro, Mwanza, Arusha or Dodoma. Owners of empty warehouses, yards and sheds who want a tenant on clear terms. Logistics operators considering a bonded or receipt-system licence. Advocates drafting the lease and surveyors inspecting the building.
What does the building check cover?
| Item | What to confirm | Why it matters |
|---|---|---|
| Access | Road width, gate height, turning circle for a 12 metre trailer, distance from the trunk road | A warehouse a trailer cannot enter is a shed |
| Floor | Concrete thickness and load rating, level, drainage | Forklifts and racking need a rated floor |
| Eaves and roof | Clear height under the trusses, roof material and leaks after rain | Racking height and stock damage |
| Loading | Number of bays, dock height, canopy | Throughput in the rains |
| Power and water | Three-phase supply, TANESCO account, generator, water source | Cold rooms, lighting, fire system |
| Security | Perimeter wall, lighting, guard house, CCTV | Insurance terms and premiums |
| Fire | Hydrants, extinguishers, alarm, fire certificate | OSHA, insurer and the council |
| Yard | Fenced area, surface, container stacking | Overflow and container storage |
What does the paper check cover?
- Certificate of title and an official search dated within the month (TZS 10,000, register ID F0465), showing the owner and any mortgage.
- Land rent receipts for the current year (urban commercial rates by council and zone, register ID F0453).
- Planning permission or use class that allows storage, and any change of use needed.
- Building permit and completion certificate from the council.
- OSHA registration and the latest inspection report.
- Fire certificate from the Fire and Rescue Force.
- TANESCO and water accounts in good standing.
- Lender's consent to lease, where the title is mortgaged.
Which lease terms prevent disputes?
| Term | Market practice |
|---|---|
| Rent | Per square metre a month, stated with or without VAT, paid monthly or quarterly in advance by bank transfer |
| Term and break | 12 to 36 months, with a break after 12 on three months' notice where the tenant needs flexibility |
| Deposit | One to three months' rent, held by the owner, returned against the handover report |
| Repairs | Owner: structure, roof, perimeter. Tenant: internal, fittings, damage caused by operations |
| Insurance | Owner insures the building; tenant insures stock and public liability; each notes the other's interest |
| Use | Storage and handling of stated goods; dangerous goods only with written consent and the permits |
| Rent review | Fixed for the term, or indexed at a stated percentage at each anniversary |
| Exit | Handover in the condition recorded at entry, fair wear excepted, against a joint inspection |
The lease is drafted by an advocate, stamped at 1% of annual rent and registered where the term requires. Withholding tax on rent paid to a resident landlord for other assets is outside withholding (register ID F0218), which the tenant's accountant confirms for the parties' circumstances.
Should the warehouse be bonded or receipt-licensed?
A bonded warehouse lets an importer defer duty while goods are stored under customs control, which suits transit and re-export cargo in the port corridor. The licence sits with the operator, needs the TRA's approval of the building and a bank guarantee of at least TZS 500 million for a private bond, and carries an annual fee of USD 1,500. The owner's role is to provide a building that passes the TRA's inspection: a single secure entrance, a customs office, and segregated bonded and duty-paid areas.
A warehouse licensed under the warehouse receipt system stores crops such as cashew, coffee, sesame and maize against receipts that farmers and traders can pledge to banks. The licence is per operator and per site, at TZS 200 per tonne of capacity, and brings grading, weighing and insurance obligations. Owners near production areas can lease to a licensed operator rather than hold the licence themselves.
A worked example: 2,000 square metres in Kibaha
An owner offers a 2,000 square metre warehouse with a 1,200 square metre yard in Kibaha, two kilometres from the Morogoro road, three-phase power, two dock-height bays, eight metre eaves and a concrete floor rated for forklifts. An exporter of sesame needs covered storage for 18 months before shipment through the port. After both sign the NDNCA, the exporter's surveyor inspects, the advocate orders the search, and the parties agree a 24-month lease at TZS 10,000 per square metre a month, TZS 20 million a month, paid quarterly in advance, deposit two months.
Stamp duty is 1% of the annual reserved rent, TZS 2.4 million on TZS 240 million a year (register ID F0478), paid by the tenant under the lease. The owner's land rent for the plot is confirmed paid, OSHA registration is in the owner's name, and the exporter insures the stock. The figures are illustrative; rents in Kibaha and the corridor vary with access and specification.
What are the hard-to-spot issues?
- Specimen companies and figures in a listing presented as live stock or tenants.
- A roof that leaks only in the long rains; inspect after rain or ask for dated photos.
- A plan to store dangerous goods without the permits, which voids insurance.
- A sub-lease by a tenant whose own lease forbids it.
- Rent quoted without VAT and invoiced with it, or the reverse.
- A yard that floods, cutting access for weeks.
- An unregistered lease of more than the term the Land Act requires to be registered.
What to do now
- Walk the site with a surveyor and record floor, eaves, access and power.
- Order the official search and confirm land rent and use.
- Check OSHA and fire registration and the latest inspection.
- Decide on bonded or receipt status and whether the building can pass the TRA or WRRB inspection.
- Agree the rent band, term and deposit in the deal room after the NDNCA.
- Instruct an advocate to draft, stamp and register the lease.
- Record the entry condition with a joint inspection report and photos.
Key dates
| Item | When |
|---|---|
| OSHA inspection fee | Annual (register ID F0442) |
| Bonded warehouse licence | Annual, USD 1,500, pro rata in the first year (register ID NEW-03-23) |
| Warehouse receipt operation licence | Per licence period, TZS 200 per tonne (register ID NEW-07-15) |
| Stamping of the lease | Before registration; late stamping penalised (register ID NEW-02-25) |
| Rent | Monthly or quarterly in advance |
How Zatra helps
Zatra Consultants Limited screens the owner's title, authority and the lawful use before a warehouse is listed, and verifies the tenant's identity, mandate and capacity before a match. As the client's adviser under a PSFA, Zatra coordinates the surveyor and advocate, runs the data room and records completion; Zatra also prepares the feasibility and business plans a lender may ask for, designed by Nembo, through the document library. Zatra does not inspect buildings, issue licences or decide any outcome of the TRA, OSHA, WRRB or a council. Zanzibar warehouses follow Zanzibar's own land and customs rules.
Sources and status
Accurate as at 3 Nov 2026. Figures are from the sources below and from the Zatra government fees register, quoted with their register IDs so they can be checked line by line.
- Stamp Duty Act, Cap. 189 R.E. 2023, Schedule article 34. TanzLII, consolidated 2023. Accessed 3 Nov 2026.
- Occupational Safety and Health Act, Cap. 297. Occupational Safety and Health Authority, consolidated. Accessed 3 Nov 2026.
- East African Community Customs Management Act 2004, bonded warehouses. Tanzania Revenue Authority, licensing conditions 2026. Accessed 3 Nov 2026.
- Warehouse Receipts Act, 2005 and WRRB licensing fees. Warehouse Receipts Regulatory Board, 2026. Accessed 3 Nov 2026.
- Land Act, Cap. 113 R.E. 2023. TanzLII, consolidated 2023. Accessed 3 Nov 2026.
- Land Registration (Amendment) Rules 2010, GN 485 of 2010. Ministry of Lands, 2010. Accessed 3 Nov 2026.
- Zatra Tanzania Government Fees Register 2026, imports, land and agriculture chapters. Zatra Consultants Limited, 2026 edition. Accessed 3 Nov 2026.
Figures to confirm before you act
- Lease stamp duty 1% of annual reserved rent (register ID F0478)
- Bonded warehouse annual fee USD 1,500 and security minimums (register IDs NEW-03-23, F0347, F0348)
- WRRB operation licence TZS 200 per tonne (register ID NEW-07-15)
- OSHA annual inspection fee by size and sector (register ID F0442)
General information prepared by the Fursa365 deal desk, Zatra Consultants Limited. It is not legal, tax or investment advice and does not decide or guarantee any authority's outcome. Confirm current rules and fees with the authority named and your own advocate before you act. Mainland Tanzania is described; Zanzibar has separate laws and bodies.
Questions readers ask
Is rent on a warehouse subject to VAT?
Commercial rent is a taxable supply where the landlord is VAT registered. State in the lease whether the rent is inclusive or exclusive, and have the landlord issue a tax invoice. The accountant confirms the treatment for both parties.
Who registers the lease?
The tenant's advocate usually stamps and registers it at the Registrar of Titles, at 1% of annual rent, with the owner producing the title. A lease the Land Act requires to be registered but is not can be hard to enforce against a later buyer.
Can I run a bonded warehouse as a tenant?
Yes. The bonded licence sits with the operator, not the owner, provided the building passes the TRA inspection and the operator lodges the security. The lease should allow the alterations the TRA needs, such as a customs office.
What deposit is normal?
One to three months' rent, held by the owner and returned within a stated period after a joint handover inspection, less agreed deductions. Fursa365 never holds the deposit; it moves between the parties through banks.
Does Fursa365 inspect the building?
No. Screening confirms the owner's title, authority and use. The tenant engages a surveyor from the professional panel for the physical inspection and its own advocate for the lease. Onsite asset verification by Zatra is a separate paid service.
What if the owner's title is mortgaged?
The lender's written consent to the lease is needed and goes in the data room. Without it the lender can disregard the lease on enforcement. Screening asks for the consent when the search shows a mortgage.
How long are warehouse leases in the port corridor?
Twelve to thirty-six months is common, with a break clause after twelve for tenants with contract-linked needs and a longer fixed term where the tenant invests in racking or a bond.
Engineer. Execution of registrations, licences and authority follow-up. Ten years in operations and industrial engineering.
