Railway, aviation projects dominate Transport Ministry’s Sh2.8 trillion budget estimates

Dodoma. The Minister for Transport, Prof Makame Mbarawa, has outlined an ambitious spending plan for the 2026/27 financial year, with a heavy emphasis on modernising Tanzania’s aviation and railway infrastructure.

Presenting the ministry’s budget estimates in Parliament on May13, 2026, the minister requested a total of Sh2.872 trillion to facilitate eight key priority areas.

The budget proposal reflects the government's continued strategy of leveraging transport as a primary driver for national economic growth.

Aviation stands at the forefront of the government's strategic objectives for the coming year.

Pro Mbarawa informed the Parliament that the ministry intends to significantly strengthen the aviation sector to improve international and domestic connectivity.

The government plans to continue the acquisition and improvement of aircraft for Air Tanzania Company Limited, which currently operates a fleet of 16 vessels.

Furthermore, the budget includes provisions for the rehabilitation and construction of regional airports in Mwanza, Arusha, Mtwara, and Bukoba to support increased passenger and cargo traffic.

Kilimanjaro International Airport is also slated for major rehabilitation to ensure it meets rising safety and service standards.

Railway development remains the single largest recipient of the sector’s investment.

The minister highlighted the continued construction and operationalisation of the Standard Gauge Railway as a critical priority.

Currently, passenger and cargo services are operational between Dar es Salaam and Dodoma, but the government intends to expand this network further.

Prof Mbarawa also emphasised the urgent need to modernise legacy networks, including the rehabilitation of the Meter Gauge Railway and the TAZARA railway.

These efforts are designed to ensure that the Tanzania Railways Corporation continues its trend toward financial self-sustainability and reduces its reliance on state subsidies.

The proposed Sh2.872 trillion budget is heavily weighted toward capital investment.

Development projects have been earmarked for Sh2.746 trillion, representing approximately 95.6 percent of the total request.

This substantial allocation underscores the administration's commitment to completing flagship infrastructure projects.

In contrast, recurrent expenditure is estimated at Sh126.04 billion, which accounts for only 4.38 percent of the total budget.

Of this recurrent figure, Sh113.5 billion is dedicated to employee salaries, while Sh25.906 billion will cover other operational expenses within the ministry.

Beyond air and rail, the minister noted that funds would also be directed toward maritime safety and the construction of ships on Lake Victoria and Lake Tanganyika.

He stated that these investments are aligned with the National Transport Policy and the National Vision 2050.

The minister concluded his presentation by warning that budget implementation would be closely monitored.

He noted that the government will hold departments and institutions accountable if they fail to meet their work plan targets or fulfill their responsibilities during the mid-year budget review.