Fundikira continued running private business until 1990, when he spearheaded the debate on multipartism in Tanzania in collaboration with other politicians such as the late Kassanga Tumbo, Prince Bagenda, Mabere Marando, Ndimara Tegambwage, when they formed a national political reform committee (NCCR).
In 1993, soon after the birth of multiparty democracy in the country, Fundikira formed the UMD party and took part in the 1995 presidential election in which CCM emerged victorious, with Benjamin Mkapa being announced as the winner.
Fundikira hailed from a family of Nyamwezi chiefs but lost his title after founding President Mwalimu Julius Nyerere scrapped the chiefdoms set up in the country.
The organisation was founded in 1945 by the Aga Khan with the aim of promoting Islam and raising the standard of living for East African Muslims.
In 2005, Fundikira was nominated as Member of Parliament by former President Benjamin Mkapa along with a host of others, including Makongoro Nyerere and Anne Kilango of CCM.