The Young Lions of Teranga came from behind after the East Africans stunned them early through Hamis Chenga’s seventh-minute strike at the Moulay El Hassan Stadium.
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Ibrahima Dione restored parity in the 64th minute, finishing from close range after a goalkeeping error, sending the match into extra tension before penalties.
Senegal showed greater composure in the shootout, with Faye, Sadio, Dione and Thior all converting confidently, while Tanzania missed twice despite goals from Usuph and Mbegelendi.
The victory secured Senegal’s second U17 AFCON title and they will represent Africa at the U17 World Cup in Qatar alongside Tanzania, Egypt, Cameroon, Ivory Coast, Morocco, Algeria, Mali, Mozambique and Uganda.