Preliminary actuarial studies recommended the NHIF’s operations be centralized in Dar es Salaam. However, in view of the fact that the majority of the NHIF’s members live in rural areas, particularly primary school teachers, the NHIF took initiatives to decentralize its services.

The main objective of decentralization was to improve services with the expectation of accentuating a spirit of ownership in members, reducing operational costs and bringing stakeholders closer to the scheme.

The NHIF decentralized and initiated an on-going strategy to convey the health insurance concept to the rural population. By June 2011, the scheme had opened 12 area offices country wide. These offices are mandated to make operational decisions in their areas of jurisdiction. Thus, decentralization has led to tremendous cost reductions, increased awareness among members, and a reduction in members’ complaint and the time taken to process claims.