Roads Fund Board

History of the Board

The roads Tolls Act, 1985 enacted by the Parliament of the United Republic of Tanzania on 26 July 1985 provided for the imposition and collection of tolls on the vehicular use of public roads and for other matters related to roads tolls. The tolls were treated as normal government revenues. Two Road Funds were established under two separate declarations made by the Minister for Finance at different times. The first declaration called the “DECLARATION TO ESTABLISH A SPECIAL ROAD FUND”. Or “THE ROADS FUND” was made in august 1991, and the second , the “DECLARATION TO ESTABLISH THE LOCAL GOVERNMENT ROADS FUND” was made in august 1992. The Roads Fund was to be used to meet maintenance cost for regional core roads as well as to fund the rehabilitation and maintenance of urban and district roads. Funds were to be derived from the road toll levied on petrol and diesel and various sources levied on motor vehicles such as motor vehicle licenses, motor vehicle registration etc.

As the fuels were established in accordance with section 17(i) of the “Exchequer and Audit Ordinance” (Cap 439) which empowers the Government to establish a special fund, and being only and administrative procedure, the declaration had no legal force and hence no legal liability for failure to comply with the declarations Thus, in order to give the Fund some legal force and secure more stable financing for road maintenance and the management of the funds, the Parliament of the United Republic of Tanzania enacted the roads Tolls (amendment) (No.2) Act. 1998 which established the road Fund and the Roads Fund Board. The Act was revised several times and is now referred to as the road and Fuel Tolls Act, CAP 220 (Revised edition 2019).

The Board came into operation in the year 2000 and was located in TETEX House along Pamba road Dar es Salaam.

The first chairperson of the Road Fund Board was Mrs Rose Mang'enya who was followed by Mr Philip A. Magani and Mr. Joseph O. Haule. Currently the board is headed by the Vice Chairman Mr. Octavian Mshiu

Functions of the Board

Pursuant to the Road and Fuel Toll Act CAP 220, the main functions of the Road Funds Board are:

1. To advise the roads Minister on new sources of roads and fuel tolls, adjustment of rates of existing roads and fuel tolls and on regulations for collection of road and fuel tolls for the purpose of ensuring adequate and stable flow of funds to road operations;
2. To apply the money deposited into the Fund for the purposes approved by the Parliament;
3. To set out procedures for agents with respect to the collection of roads and fuel tolls for the purpose of the Fund;
4. To ensure full collection and transfer of collected roads and fuel tolls to the Fund's account;
5. To develop and review periodically the formula for allocation and disbursement from the Fund to road agencies and advise the roads Minister accordingly;
6. To recommend to the roads Minister an allocation of funds for road agencies to undertake road management at a level that is suitable and affordable;
7. To disburse funds from the Fund to road agencies;
8. To ensure that the operations of road agencies and the Fund are technically and financially sound;
9. To monitor the use of the funds disbursed to road agencies for the purpose of the objects of the Fund;
10. To appoint the Roads Fund Chief Executive Officer and Senior Officers;
11. To appoint, subject to approval by the Controller and Auditor General, an auditor or auditors to carry out the audit of the Fund; and
12. To make any other recommendations to the roads Minister as it considers necessary to enable the Board to achieve its objectives.