The government plans to build a new market for small-scale traders at Kigogo Sambusa within six months, seeking to ease congestion in Kariakoo, reduce disputes between street vendors and shop owners, and improve conditions for businesses in one of Tanzania’s busiest commercial centres.
The project, to be financed through five per cent of Ilala’s internally generated revenue, is intended to provide alternative trading space for wamachinga as the government continues plans for a permanent market linked to the redevelopment of the Msimbazi Valley.
Minister of State in the Prime Minister’s Office responsible for Regional Administration and Local Government (PMO-RALG), Prof Riziki Shemdoe, said construction of an embankment at Kigogo Sambusa would begin immediately, allowing the Ilala Municipal Council to proceed with the market.
“The government’s goal is to reduce congestion in Kariakoo. Construction of the embankment at Kigogo Sambusa is starting immediately, and once it is completed, the Ilala City Council will begin building the market,” he said.
“We want the area to be ready so that street vendors can relocate and conduct their businesses peacefully,” Prof Shemdoe added.
He was speaking in Dar es Salaam on October 19, 2026, during a meeting with representatives of Kariakoo shop owners, street vendors and regional leaders.
The six-month completion target puts pressure on the municipal council and other government officials to deliver the project on time, particularly as congestion and competition for trading space continue to affect businesses in Kariakoo.
Prof Shemdoe said the project would be funded through five per cent of Ilala’s internally generated revenue, thanking President Samia Suluhu Hassan for approving the use of the protected allocation to improve business infrastructure, including markets.
He directed the PMO-RALG Permanent Secretary, the Dar es Salaam Regional Administrative Secretary and the Ilala District Commissioner to supervise implementation closely. He also pledged to revisit the site after one month to assess progress.
However, the government will continue organising street vendors within Kariakoo while construction proceeds at Kigogo Sambusa, indicating that the new market will not immediately end efforts to clear congestion in the existing commercial area.
Prof Shemdoe urged the chairman of Kariakoo street vendors to cooperate with the authorities to ensure the area remains accessible to traders, customers and vehicles.
For the project to deliver lasting relief, the new market will need to offer sufficient and accessible trading space while enabling vendors to maintain their customer base. The fairness of stall allocation will also be important in preventing new disputes over business locations.
Kariakoo Traders’ Chairman Severine Mushi, speaking on behalf of shop owners, welcomed the government’s initiative, saying traders were ready to continue paying taxes and contributing to national revenue if the business environment improved.
His remarks underline the relationship between orderly trading conditions and the government’s ability to collect revenue from commercial activities.
Meanwhile, Kariakoo street vendors’ chairman Steven Lusinde thanked the government for facilitating access to loans for small-scale traders but called for action against bureaucracy and malpractice in the allocation of new business spaces.
The concerns raise questions about how the new market will be managed and how authorities will ensure that eligible traders receive space transparently, without favouritism or unnecessary delays.
The government expects the project to reduce congestion, improve trading conditions, limit disputes between shop owners and street vendors, and increase tax collections.
The key test, however, will be whether the market is completed within the promised six months and provides a practical, affordable alternative for vendors whose livelihoods depend on access to customers.
For Kariakoo, the project represents an attempt to balance the need for an orderly commercial centre with the importance of protecting small traders’ livelihoods.
Its impact will ultimately depend on timely construction, transparent allocation of stalls and effective management of the new trading area.