Dar es Salaam — The Government of Tanzania received a record Sh1.327 trillion in dividends and contributions from state-owned enterprises and minority-held companies for the 2025/2026 financial year.
President Samia Suluhu Hassan received the cheque on Tuesday, June 30, 2026, during the third annual Dividend Day held at the State House in Dar es Salaam. The amount represents a 30 per cent increase, or Sh300 billion, compared to the Sh1.028 trillion collected in the previous year.
President Samia commended the institutions that contributed to the increase, noting that the growth reflects a deliberate effort to strengthen management, discipline in resource use, and close monitoring.
She emphasised that public institutions must transition from relying on government subsidies to generating their own revenue and contributing to national development.
“Institutions were consuming more from the government than they were bringing in, but now we have changed the direction,” President Samia said. “If you were consuming from the government, now you must say, ‘Government, keep your money, I have my own, and I will run myself.’ That is a huge contribution.”
Treasury Registrar Nehemia Mchechu attributed the growth to ongoing administrative and strategic reforms within public institutions. He noted that the success of government investments is measured not just by the size of capital, but by their contribution to economic growth, revenue generation, and improved social services.
“These results show that when government investment is guided by principles of accountability, good governance, business efficiency, and careful management of public resources, it becomes a major catalyst for national development,” Mchechu stated during the handover ceremony.
The total collection comprises Sh800 billion (60 per cent) from commercial state-owned enterprises and minority-held companies, Sh406 billion (30 per cent) in gross revenue contributions from non-commercial public institutions, and Sh121 billion (10 per cent) from other revenue sources.
Shift in revenue sources
Mr Mchechu highlighted a significant shift in revenue sources. Previously, the bulk of contributions came from non-commercial entities. Now, commercial enterprises account for 60 per cent of the total, indicating improved business environments and better management.
Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, underscored the broader economic impact of these reforms. He pointed out that Tanzanian companies are gaining international recognition, citing a recent report by African Business magazine that placed two Tanzanian banks, CRDB and NMB, among the top four companies in East and Central Africa.
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“For the first time ever, this places Tanzania’s biggest banks ahead of their Kenyan counterparts, including Equity Bank and KCB Bank,” Prof Mkumbo quoted from the report. “This does not happen because of history or geography. It happens because of the right economic policies that the President is leading.”
Since President Samia took office in 2021, dividend collections have surged by 108 per cent, growing from Sh637 billion. During the same period, the total capital of all public institutions increased by 37 per cent, rising from Sh67 trillion in 2021 to TSh92 trillion currently.
Mchechu explained that this capital growth includes government loans invested in these corporations and retained earnings. He clarified that funds used for major projects like the Standard Gauge Railway (SGR) and the Julius Nyerere Hydropower Plant, currently classified as loans, will be capitalised into the respective institutions once completed.
“When these projects are completed, we will be talking about a capital of over Sh130 or 140 trillion when we capitalise all loans and ongoing working capital,” Mchechu added.
Increasing non-tax revenue
The government aims to increase non-tax revenue to 10 per cent of total government revenue by 2030. Mchechu expressed optimism that this target could be achieved ahead of schedule, given the current growth rate of at least 30 per cent.
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He noted that the reported figure of Sh1.327 trillion would have been higher if contributions from four major institutions were included.
The Tanzania Revenue Authority (TRA) will now report the revenues from the Tanzania Ports Authority (Sh70.7 billion), Ngorongoro Conservation Area Authority (Sh114.14 billion), Tanzania National Parks Authority (Sh208.5 billion), and Tanzania Wildlife Management Authority (Sh90.39 billion).
Had these been included, the total contribution from institutions under the Treasury Registrar would have reached Sh1.811 trillion.
The event also underscored the government’s commitment to empowering Tanzanians in leadership roles within minority-held companies, citing successful local leadership at NMB Bank, NBC Bank, and Puma Energy.
Furthermore, capacity-building initiatives reached over 1,200 board members and leaders between 2025 and 2026 to strengthen corporate governance.
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Looking ahead, President Samia urged institutions not to become complacent and directed the Treasury Registrar to continue assessing entities that could be listed on the Dar es Salaam Stock Exchange to attract capital and increase public ownership. She also issued a stern warning against the mismanagement of public funds.
“We will not hesitate to take action where we identify negligence and misuse of public resources,” President Samia warned. “This work is not the responsibility of the Treasury Registrar alone. Every ministry with institutions under it must ensure those entities operate efficiently, are led professionally, and are measured by results.”
