A Tanzanian official says the death toll from a capsized ferry on Lake Victoria has risen to 167 while wooden coffins have arrived at the scene.

The government's Chief Secretary John Kijazi spoke to reporters after the country's president ordered the arrests of those responsible for the disaster.

The badly overloaded ferry capsized in the final stretch before shore on Thursday afternoon as people returning from a busy market day shifted and prepared to disembark.

Families of victims are preparing to claim the bodies of their loved ones as search efforts around the ferry's exposed underside continue.

No one knows how many people were on board the ferry, which had a capacity of 101. Search efforts continue.

The East African nation has a history of deadly maritime disasters.