DAR-Dividends to the government from companies in which it holds minority shares have increased by an impressive 236 percent over the past five years.
In the fiscal year ending June 2024, the government, through the Office of the Treasury Registrar (OTR), received Sh195 billion in dividends, up from Sh58 billion five years ago.
This significant growth in dividend collection was highlighted on Wednesday, March 19, 2025, by Ms. Lightness Mauki, Director of Performance, Monitoring, and Evaluation of Commercial Entities at the OTR, during an announcement made on the Baragumu program aired on Channel 10.
Ms. Mauki spoke in anticipation of the upcoming meeting of Chief Executive Officers and board directors of companies in which the government holds minority shares, scheduled for March 26 to 28, 2025.
“This is not ordinary growth,” said Ms. Mauki during the morning broadcast.
She attributed the increase in dividends to favorable business conditions, improved governance, and strong collaboration with other shareholders.
To further enhance the contribution of companies in which the government holds minority interests, the OTR has been reviewing outdated contracts to align them with current realities.
“One positive development is our continued good relations with other shareholders. This will help improve the productivity of the companies in which the government has a stake,” she noted.
In this context, the government has successfully increased its shareholding in SOTTA Mining Company from 16 percent to 20 percent.
Moreover, the government has been enhancing the operational performance of these companies, and the results are already becoming evident.
In June 2024, Mbeya Cement Company Limited announced a dividend payment of Sh3 billion to the government, marking the first dividend payment in ten years.
Ms. Mauki stated that the aim of the OTR is to double the Sh195 billion dividend in the future.
To achieve this, the office recognized the need for a second meeting of Chief Executive Officers and Board Directors of companies in which the government holds minority shares.
The upcoming meeting, set to take place at the Julius Nyerere Leadership School in Kibaha, Coast Region, will see the launch of a new governance guideline for board directors that aligns with different objectives compared to the previous one.
Among the topics to be discussed is a special session on the Implementation of the East African Community Vehicle Load Control Act, 2016: Cases of Road Overloads and Proposed Solutions, facilitated by the Works Ministry.
Additionally, there will be discussions on how to leverage technology in the operations of institutions to enhance productivity and governance.
Ms. Mauki believes that the use of technology will yield positive results for institutional performance, which is why it has been designated as the theme of the meeting.
“The government has significant needs. It is our duty to come up with various strategies for revenue generation,” she underscored.
“Increasing dividend collections is crucial so we can direct funds towards development projects.
“We believe we can increase collections, as the statistics are in our favor. Over the past four years, dividends from companies in which the government holds minority shares have been growing at an average rate of 50 percent each year.”
The OTR oversees a total of 308 institutions, comprising 252 fully owned by the government and 56 in which the government holds minority shares, defined by Section Three of the Public Corporations Act as ownership below 51 percent.