The Government of Tanzania has received a record Sh1.327 trillion in dividends and contributions from state-owned enterprises and minority-held companies for the 2025/2026 financial year, marking a 30 per cent increase compared to the previous year.The cheque was presented to President Samia Suluhu Hassan during the third annual Dividend Day held at State House in Dar es Salaam.

Leaders attributed this strong performance to ongoing reforms focused on improving efficiency, accountability, and governance within public institutions.

President Samia emphasized that state institutions must shift from dependency on government subsidies to becoming self-sustaining and revenue-generating entities that actively contribute to national development.

Treasury Registrar Nehemia Mchechu noted that the improved results reflect better management practices and stronger oversight, highlighting that commercial state-owned enterprises now contribute 60 per cent of total revenue, while non-commercial entities account for 30 per cent and other sources 10 per cent.This marks a significant shift from previous years when non-commercial institutions dominated contributions.

The government also revealed that if contributions from major institutions such as TANAPA, TRA-linked entities, and others were fully included, total collections could have reached Sh1.811 trillion.

Since President Samia took office in 2021, dividend collections have grown by 108 per cent, while total capital in public institutions has increased from Sh67 trillion to Sh92 trillion, a rise of 37 per cent.

Officials project that capital could surpass Sh130 trillion once ongoing infrastructure investments like the SGR and hydropower projects are fully capitalised.

The government aims to raise non-tax revenue to 10 per cent of total revenue by 2030, with officials expressing confidence that this target could be achieved earlier.The leadership also stressed continued reforms, potential stock exchange listings, and strict action against misuse of public funds.