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Case Law[2026] TZHC 2962Tanzania

Attorney General and Another vs Karagwe Development Association (KARADEA) T/S Katibu Karadea (Civil Case No. 22669 of 2025) [2026] TZHC 2962 (4 June 2026)

High Court of Tanzania

Judgment

IN THE HIGH COURT OF THE UNITED REPUBLIC OF TANZANIA BUKOBA SUB - REGISTRY AT BUKOBA CIVIL CASE NO. 22669/2025. THE ATORNEY GENERAL………….……………….…….….1 st PLAINTIFF THE BOARD OF TRUSTEES OF THE NATIONAL SOCIAL SECURIT Y FUND ……………………2 nd PLAINTIFF VERSUS KARAGWE DEVELOPMENT ASSOCIATION (KARADEA) T/S KATIBU KARADEA ......................................................................DEFENDANT JUDGMENT 2 2 th May & 4 th June, 2026 ITEMBA, J. This consent judgment emanates from the Deed of Settlement signed by parties on 21 May, 2026. By way of plaint, the Plaintiffs instituted this suit praying for judgment and decree against the Defendant as follows: (i) The Defendant to be ordered to pay the sum of TZS 6,518,180/= (Tanzanian Shillings Six Million Five Hundred Eighteen Thousand One

Hundred Eighty Only) being the outstanding principal members' contributions covering various periods between November, 2021 and October, 2024 due and payable to the Plaintiffs by the Defendant. (ii) The Defendant to be ordered to pay the sum of TZS 38,303,071/= (Tanzanian Shillings Thirty - Eight Million Three Hundred Three Thousand Seventy - One Only) being the additional contributions for late payment of statutory cont ributions which sum continues to accrue as long as it remains due. (iii) Interest on the decretal sum at the Court rate of 7% from the date of delivery of judgment until the same shall be fully satisfied. (iv) Costs of and incidental to the filing of the suit. (v) Any other and further relief as this Honourable Court shall deem fit and just to grant. On 22 April, 2026 when the matter came for mention, parties informed the c ourt that they were exploring the possibility of settling the matter amicably. T he Defendant informed the c ourt that it had already settled the principal contributions and was negotiating with the Plaintiffs on the manner

of settling the additional contributions. Consequently, the Court granted the parties thirty (30) days to negotiat e and settle the matter. Thereafter, on 22 nd of May, 2026 when the matter came for further mention, parties through their le gal couns els informed the c ourt that they had already prepared a Deed of Settlement and that the Defendant had signed the same while the Plaintiffs were in the process of completing execution thereof. The Court granted the parties additional time to finalize the Deed and file the same before Court which they complied . I have gone through the Deed of Settlement signed by parties on 2 1 st of May, 2026 and subsequently filed before this Court. The Deed indicates that, after reconciliation of records and a follow - up inspection conducted by the 2 nd Plaintiff, it was established that the Defendant had outstanding statutory contributions in the sum of TZS 6,518,180/= (Tanzanian Shillings Six Million Five Hundred Eighteen Thousand One Hundred Eighty Only) and additional contributions for late remittance of statutory contributions amounting to TZS 38,303,071/= (Tanzanian Shillings Thirty - Eight Million Thr ee Hundred Three Thousand Seventy - One Only).

Equally, the Deed shows that the outstanding principal contributions amounting to TZS 6,518,180/= had already been paid by the Defendant and that the only outstanding amount remaining payable was the sum of TZS 38,303,071/= being additional contributions for late remittance of statutory contributions. In that regard, the Deed of Settlement is hereby recorded and adopted to form part of this consent judgment. Consequently, this suit is hereby marked settled between the parties pursua nt to Order XXIII Rule 3 of the Civil Procedure Code [Cap. 33 R.E. 2023] with the following orders:

  1. That the Defendant has already paid TZS. 6,518,180/= (Say Tanzania Shillings Six Million Five Hundred Eighteen Thousand One Hundred Eighty Only)
  2. That, the Defendant shall pay the Plaintiff a total sum of TZS. 38,303,071/= (Say Tanzania Shillings Thirty - Eight Million Three Hundred Three Thousand Seventy - One Only) being the additional contributions the Defendant owes the Plaintiff.
  3. That, the Parties hereto fur ther agrees that, the remittance of the sum referred in clause 2 above shall be paid in 12 th Instalments for the

period of Thirty - Six (36) months effectively from April, 2027 to January, 2030. 4. That, the Defendant undertakes to be current in remittance of m embers' contributions in respect of the Defendants ' - employees' who are the 1 st Plaintiff’s members without default at any time. 5. That, the Parties agrees that this Deed of Settlement shall be filed in Court to signify the Parties' agreement and the Parties, by way of this Deed, notify the c ourt that, the Parties have agreed to settle the matter in the modalities stipulated herein. 6. That, upon fully execution of this Deed and satisfaction of clauses 2 and 4 herein, there shall be no further rights or obligatio ns as between the Parties in relation to this case. 7. That, the arrears as above stipulated amounting to TZS. 38,303,071/= (Say Tanzania Shillings Thirty - Eight Million Three Hundred Three Thousand Seventy - One Only) shall be payable by the Defendant to the 1 s t Plaintiff in Twelve instalments within Thirty - Six (36) months as clearly itemized in the repayment schedule herein below:

Period Instalment Amount (TZS) 30 April, 2027 1 st 3,191,922.57 30 July, 2027 2 nd 3,191,922.57 30 September, 2027 3 rd 3,191,922.57 30 January, 2028 4 th 3,191,922.57 30 April, 2028 5 th 3,191,922.57 30 July, 2028 6 th 3,191,922.57 30 September, 2028 7 th 3,191,922.57 30 January, 2029 8 th 3,191,922.57 30 April, 2029 9 th 3,191,922.57 30 July, 2029 10 th 3,191,922.57 30 September, 2029 11 th 3,191,922.57 30 January, 2030 12 th 3,191,922.73 TOTAL AMOUNT: TZS 38,303,071/=

  1. That, this Deed of Settlement shall, upon being filed in Court, and upon payment of settlement sum as stipulated in clauses 2 and in the modality described in the schedule of payment under Article II hereinabove as well as the fact that the Defendant remai ns current in remittance of members' contributions, finally satisfies the Decree and shall have the same effect as an otherwise fully and finally satisfied Decree of the Court .
  2. That, this Deed of Settlement shall, upon being filed in Court, have the same e ffect as a Decree duly made by the Court capable of being executed in the same manner as any other decree of the Court; that in the event of default of any term of this Deed of Settlement, then this Deed shall become enforceable as a Decree of the Court an d the usual default clause shall apply.
  3. That the consent judgment carries the usual default clause.
  4. Save for the cost s of the Court Broker which shall be borne by the Defendant, all other costs and expenses incurred in connection with the suit and/or this D eed of Settlement including, but without limitation to attorneys, accountants, financial advisors, Court fees and

any other costs incurred by any of the parties herein shall be paid by the party incurring such expenses. 12. This Settlement shall be governed by and construed in accordance with, the laws of Tanzania. Any dispute arising out of or in connection with, or concerning the carrying into effect of this Deed shall be subjected to the exclusive jurisdiction of the Courts of the United Republic of Tanzan ia, and the Parties hereby submit to the exclusive jurisdiction of those Courts for these purposes. 13. That, the Defendant undertakes to be current in remittance of members' contributions in respect of the Defendant's - employees who are the 1 st Plaintiff’s members without default at any time. 14. That the execution and performance of this Deed of Settlement does not and shall not result into a breach of any provision of the 1 st Plaintiff the Defendant's applicable laws, regulations, arrangements or obligations to which they a re Parties or by which they are bound. 15. That, no waiver of the breach of the terms of or any default under this Deed of settlement shall be deemed a waiver of any

subsequent breach or default or in any way effect the other terms of this Deed of Settlement. It is so ordered. D ATED at B UKOBA this 4 th day of June, 2026. L. K. J. ITEMBA JUDGE

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