Officials say at least 86 people have died but number could be more than 200.
Operations had been put on hold overnight.
Reports say the MV Nyerere vessel tipped over when passengers on board moved to one side as it came into dock.
Local media say the ferry’s official capacity was 100 people. Officials have confirmed that the vessel was carrying more than 400 passengers when it capsized.
About 100 people were rescued while 37 are said to be in a critical condition, local officials have said.
Exact figures, though, are yet to be confirmed – Reuters said the person who dispensed tickets for the journey also died, with the machine recording the data lost.
We will bring you updates as we get them.
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