Implementation of the third phase of MKURABITA entails institutionalizing the Legal and Institutional Framework developed during the second phase, as well as rolling out the processes of formalizing the extra legal assets. This phase began in July, 2008, and it is being carried out through short – term plans (one year), medium – term plans (five years), and long – term plans (ten years) that focus on proactive property and business formalization campaigns, consensus building; and establishment of feedback mechanisms as well as a national database and record keeping organization. The phase involves:-

• Amending and or enacting new legislations and or regulations that will facilitate the institutionalization of the fast track and cost effective property and business formalization systems detailed in relevant reform packages.
• Reviewing some of the selected policies and establishment of proposed national entities necessary for mainstreaming property and business formalization in the appropriate Government structures at central and local levels.
• Institutional strengthening by supporting the establishment of the necessary infrastructure and training of required personnel

Consensus Building
This will be done by sharing customized information through various media channels to demonstrate the benefits of capitalization to various social groups including the extralegal sector, business community, traditional authorities, government officials, and any other group that might tend to resist changes. This process will involve instituting a nationwide Knowledge Information Dissemination Systems (KIDS) including IEC programs to build consensus around the proposed changes and to obtain feedback form stakeholders.

Institutionalizing the Legal and Institutional Reforms
This process will involve setting up the legal and institutional reforms that have been identified and those that may be necessary as a result of further feedback from stakeholders. The process will entails review of the proposed changes by MKURABITA – Ministerial Task Teams; obtaining consent from the sectoral ministries; and subsequently effecting the changes through the normal processes and channel i.e. the Cabinet approvals, Bills preparation and enactment in parliament – in the case of the laws relevant to the mainland, and in the House of Representatives – in the case of Zanzibar laws. Simultaneously with this process, sectoral Ministry’s consent/authority will be obtained to test some of the proposed changes prior to the effecting of the changes in parliament or House of Representative. During the testing legality of the key output of the formalization interventions will be fully retained.

Implementation of Front Runners
This process entails the implementation of property and business formalization interventions at the national and local levels using the new legal and institutional settings agreed upon with the sectoral Ministries. Lesson learnt through the implementation of Front Runners will be used to further improve the reforms and sharpen the instruments for building consensus around the changes.

Institutional Strengthening and Capacity Building
This process involves enhancing the capacities of all key actors and entities both at the national and local government levels, as well as for specific stakeholders involved in conceiving and implementing interventions for real estate and business formalization. This process is expected to facilitate the successful creation of the necessary infrastructure, systems and staffing at the local, district and nation levels as well as developing and institutionalizing and sustainable funding mechanisms for the Formalization Program