The government has introduced a comprehensive health sector budget of Sh1.8 trillion for the 2026/27 fiscal year, with key priorities focused on universal health insurance (UHI), strengthening domestic pharmaceutical production, and enhancing specialised healthcare services. The initiative forms part of a broad reform programme intended to modernise and improve the nation’s healthcare system.
The proposed allocation marks an increase of approximately Sh200 billion compared to the Sh1.6 trillion budget approved for the 2025/26 financial year.
While presenting the ministry’s budget proposals before Parliament on May 11, 2026, Health Minister Mohammed Mchengerwa stated that the ministry would pursue 11 strategic priority areas aimed at enhancing the accessibility, quality, and affordability of healthcare services. These efforts are also intended to establish Tanzania as a leading destination for specialised medical treatment within the region.
According to Mr Mchengerwa, these strategic priorities are aligned with Tanzania’s Vision 2050, the Fourth National Development Plan, the CCM Manifesto for 2025–2030, and President Samia Suluhu Hassan’s vision of improving social services and investing in human capital development.
One of the central pillars of the reform agenda is the continued implementation of the Universal Health Insurance law, which the government views as essential for ensuring healthcare access for all citizens irrespective of their financial status.
He informed Parliament that efforts would be intensified to register both vulnerable and financially capable households under the national health insurance programme. In addition, awareness campaigns will be expanded to encourage greater participation in the scheme.
The ministry also intends to reinforce local healthcare financing systems and strengthen collaboration with private sector stakeholders to mobilise additional resources for healthcare delivery.
“The government will continue implementing the Universal Health Insurance programme by registering citizens from vulnerable and capable households while strengthening sustainable financing for health services,” he said.
Mr Mchengerwa further reported that since the introduction of UHI, the government has invested Sh48.8 billion to facilitate access to dependable healthcare services for individuals belonging to special categories.
“Through implementation of the programme, a total of 172,297 households have already been reached and enrolled, while 463,228 beneficiaries have started receiving various medical services at registered health facilities across the country,” he said.
He noted that through the programme’s implementation, 172,297 households have been enrolled, enabling 463,228 beneficiaries to access a range of healthcare services at accredited health facilities nationwide.
Additionally, the ministry is placing significant emphasis on expanding local pharmaceutical manufacturing as a way of reducing reliance on imported medicines and strengthening the availability of essential medical products.
Under the proposed budget framework, the government plans to establish a state-of-the-art pharmaceutical research laboratory and support local drug production initiatives, including the manufacture of antiretroviral medicines for HIV/AIDS treatment through Tanzania Pharmaceutical Industries (TPI).
The minister added that investment forums would be organised to attract both domestic and international investors to the pharmaceutical industry.
The government’s strategy also includes improving systems for procuring, storing, and distributing medicines and other health products, while enhancing monitoring measures to address antimicrobial resistance and ensure responsible antibiotic use.
Another major objective of the government is to expand specialist and super-specialist healthcare services across the country. This move aims to minimise expensive overseas medical referrals and position Tanzania as a destination for medical tourism.
Mr Mchengerwa explained that specialised medical services will continue to be introduced and expanded in regional, zonal, specialised, and national referral hospitals, while advanced super-specialist services will be launched at higher-level healthcare facilities.
The government also plans to establish centres of excellence dedicated to cardiovascular care, kidney transplantation, bone marrow transplantation, and specialised oral health services.
The number of regional referral hospitals providing specialist services is expected to rise from eight to 17, while specialised healthcare services will also be introduced in five district hospitals.
According to the minister, these improvements will be backed by investments in advanced diagnostic equipment, modern laboratory technologies, safe blood transfusion services, and stronger biomedical engineering capacity to ensure effective maintenance of medical equipment across the country.
To strengthen the healthcare workforce, the ministry plans to expand training opportunities for specialists and super-specialists in key medical disciplines while continuing the recruitment of healthcare personnel under both permanent and contractual arrangements.
The budget also provides funding for maternal and child healthcare improvements through increased access to reproductive health supplies, expansion of neonatal care units, and enhancement of midwifery services to lower maternal and infant mortality rates.
Regarding disease prevention and control, the government plans to strengthen surveillance systems and improve rapid response mechanisms for infectious diseases, disease outbreaks, and non-communicable diseases.
He also informed Parliament that the government intends to recruit 8,000 additional community health workers and broaden digital immunisation systems through the adoption of electronic vaccine management technologies.
Furthermore, the ministry has committed to accelerating the integration of digital technologies and artificial intelligence into healthcare by enhancing interoperable health information systems, expanding telemedicine services, and developing a centralised national health data repository.
Mental health has also been prioritised within the new strategy. The government plans to formulate a national mental health and psychosocial support framework while improving rehabilitation services for children, elderly individuals, and persons living with disabilities.
Budget estimates indicate that Sh652.2 billion has been allocated to recurrent expenditure, covering salaries and operational expenses, while Sh1.148 trillion—representing 64 percent of the total allocation—will be directed towards development projects.
Of the total development budget, Sh789.4 billion will be financed through domestic sources, whereas Sh358.5 billion is expected to be provided by external partners and donors.
Meanwhile, the Ministry of Health, together with its affiliated institutions and hospitals, is projected to generate Sh747.2 billion in revenue during the 2026/27 financial year.
