Tanga councils race to close revenue gap as Korogwe leads
TANGA: LOCAL government authorities in Tanga Region face a delicate balancing act as they strive to sustain development spending while grappling with the challenge of meeting ambitious revenue targets.
A mid-year assessment of internal revenue performance, presented at the 2026/2027 Regional Consultative Council (RCC) meeting shows that councils in the region collected 32.45bn/- between July 2025 and February 2026, equivalent to 55 per cent of the annual target of 59.36bn/-.
The report highlights a mixed performance across the region, with some councils demonstrating strong fiscal discipline while others face structural constraints limiting revenue generation.
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At the forefront is Korogwe District Council, the region’s top performer. By February, it had collected 3.09bn/- against a target of 2.99bn/-, reaching 103 per cent of its goal, surpassing expectations months before the end of the financial year. Officials say the success reflects improved revenue management, enforcement and local economic activity.
Handeni and Mkinga District Councils also posted strong results, collecting around 70 per cent and 73 per cent of their targets, respectively. Another group, including Pangani, Korogwe Town, Lushoto, Bumbuli, Handeni Town and Kilindi, achieved 58–66 per cent of targets. While below the mid-year benchmark of 67 per cent, officials believe these councils can still meet annual goals with accelerated collections.
However, Muheza District and Tanga City Councils lag behind, collecting below 50 per cent of targets, with Tanga City at 40 per cent, the lowest in the region.
Despite gaps, councils have continued funding key development projects using internally generated revenue. Ten per cent of unprotected revenue has been channelled to the Youth, Women and People with Disabilities Loan Fund, supporting economic empowerment programmes across the region.
Strategic investments in revenue-generating infrastructure include a commercial building in Bumbuli, 38 market stalls at Manundu Market in Korogwe Town and upgrades to bus terminals and municipal facilities to expand future revenue streams. The introduction of the Government electronic Payment Gateway (GePG) in health facilities from February 2026 is also expected to reduce revenue leakages and improve transparency.
Structural constraints remain, including policy changes reducing local tax rates, inconsistent remittance of land rent retention funds, low voluntary tax compliance, limited monitoring resources, and poor rainfall affecting rural agricultural revenue. Mineral extraction levies in Tanga City have been inconsistently paid and the Kange central bus terminal remains underutilised.
To improve collections, councils are expanding property tax registration, strengthening enforcement, increasing night patrols, acquiring monitoring vehicles, enhancing taxpayer education, updating revenue databases and fully operationalising the Kange terminal by eliminating informal bus stands.
Tanga’s revenue performance reflects the broader national challenge of financing local development through internally generated funds. While some councils show potential, the coming months will be critical for demonstrating that improved financial management and local investment can deliver sustainable grassroots development.
