Dar es Salaam. Tanzania is preparing to undertake one of the largest healthcare infrastructure projects in its history after the government unveiled plans to construct a new specialised and super-specialised national hospital at a cost of Sh1.2 trillion.
The ambitious project is also expected to strengthen Tanzania’s position as a regional medical tourism hub by expanding access to advanced treatment services that have traditionally forced many patients to seek care abroad.
The proposed facility is expected to provide highly specialised services, including organ transplants, cancer treatment, cardiac care, neurology and kidney disease management, while easing pressure on the existing Muhimbili National Hospital, which remains the country’s main referral facility.
Several Members of Parliament on May 12, 2026 welcomed the project, describing it as a long-overdue investment in the health sector. However, they also called on the Ministry of Health to provide a detailed breakdown of how the funds will be utilised to ensure transparency and public accountability.
The planned hospital is expected to reduce patient waiting times, expand bed capacity, increase the number of operating theatres and improve diagnostic services through the introduction of modern medical technologies.
Presenting the Ministry of Health’s 2026/2027 budget estimates in Parliament on May 11, Health Minister Mohamed Mchengerwa said the decision to construct a new Muhimbili followed a comprehensive assessment of service delivery challenges facing the current facility.
According to the minister, the assessment identified ageing infrastructure, scattered buildings, high maintenance costs, recurring repairs and limitations in accommodating modern healthcare technologies as some of the key challenges affecting service delivery. “The government’s ambition is to revolutionise healthcare delivery by constructing a modern Muhimbili hospital of international standards that will serve both local and foreign patients,” Mr Mchengerwa told Parliament.
He said the project is expected to be implemented over a five-year period, with the funds directed towards the construction of new buildings, installation of advanced medical systems and procurement of modern medical equipment.
Mr Mchengerwa said Sh908.6 billion of the project financing would be secured through a concessional loan, while the government would contribute Sh292 billion. He added that part of the government’s contribution would not necessarily be in cash, but through land preparation, tax exemptions and waivers on import duties for specialised medical equipment required for the project.
Lawmakers across political lines welcomed the proposal, saying it had the potential to significantly improve healthcare services and reduce the burden on patients who travel abroad for treatment.
Special Seats MP Mariam Nassoro Kisangi said the existing Muhimbili infrastructure, some of which dates back more than a century, no longer adequately serves the growing healthcare needs of the country.
“While some say Muhimbili is already large, its facilities are scattered and no longer suitable for modern healthcare demands,” she said.
Morogoro Rural MP Hamis Taletale said the project would be embraced by many Tanzanians because Muhimbili continues to serve as the country’s principal referral hospital.
Special Seats MP Hawa Mchafu Chakoma noted that discussions on the project had been ongoing since 2020 and urged the government to provide Parliament and the public with a clear financial breakdown of the planned expenditure.
“This is a major national investment and the peopeldeserve to understand how the funds will be spent,” she said.
In his presentation, Mr Mchengerwa said the new facility would help reduce the number of patients referred overseas for specialised treatment, improve the efficiency of healthcare delivery and create a better working environment for healthcare professionals.
He also said the project would contribute to foreign exchange earnings by attracting patients from neighbouring countries seeking advanced treatment in Tanzania.
The minister further revealed that the government conducted benchmarking studies on 16 hospital development projects in 15 countries across Africa, Europe and Asia before finalising the proposal.
According to the assessment, construction costs for comparable hospitals in other countries ranged between $3,000 and $7,000 per square metre, while the projected construction cost for the new Muhimbili hospital stands at approximately $1,819 per square metre.
The planned facility is expected to cover 115,000 square metres.
Mr Mchengerwa defended the scale of the investment, saying the project represented a strategic and cost-effective decision aimed at improving long-term healthcare outcomes.
“This is not a sign of misuse of public funds but a prudent investment for the nation,” he said.
The project marks one of the government’s most ambitious healthcare undertakings in recent years and signals a broader push to modernise Tanzania’s health sector amid rising demand for specialised medical services.
