Dodoma. The government has said it will finalise the Public Investment Bill in the 2026/27 financial year as part of reforms aimed at improving the performance of public entities and strengthening their contribution to Dira 2050.
Presenting the 2026/27 budget estimates for the Ministry of State in the President’s Office (Planning and Investment), the responsible minister, Prof Kitila Mkumbo, said the Bill will provide a legal framework for managing public investments, focusing on efficiency, accountability and improved performance of state entities.
He said it will propose the establishment of a Public Investment Management Authority to coordinate government investments under a unified framework.
The Bill will also propose a Public Investment Fund to mobilise capital for investments through state-owned entities without affecting contributions to the Consolidated Fund. On governance, the Bill will introduce competitive recruitment for chief executives and boards of public institutions to improve professionalism and accountability.
It will also grant greater operational autonomy to commercial state-owned enterprises, while strengthening performance monitoring systems.
Prof Mkumbo said the reforms aim to reduce reliance on government subsidies and improve efficiency in public entities.
The Office of the Treasury Registrar oversees 308 entities, including 91 commercial institutions, with total investments valued at Sh92.3 trillion.
The government will continue reviewing public entities, including merging those with overlapping functions and dissolving those no longer relevant.
Following a 2023 review, 14 entities were merged and three dissolved. TIC and EPZA were also merged to form TISEZA.
Prof Mkumbo said further mergers are being finalised.
Non-tax revenue from public entities is projected at Sh1.79 trillion in 2026/27, up from Sh1.69 trillion.
The reforms aim to increase the contribution of public entities to up to 8 per cent of GDP by 2050.
