How housing firm averted crisis

Dar es Salaam. Had it not been for the public purchase of houses constructed by Watumishi Housing Company (WHC), the firm would have struggled this year.

The move to allow non-civil servants to purchase housing units from WHC ensured the developer’s stability in the face of sales challenges, according to WHC public relations and sales officer Maryjane Makawia.

Established in 2013, WHC planned to build 50,000 houses to be sold exclusively to public servants, hence becoming the main implementer of the country’s civil servants’ housing scheme, beginning 2014/15.

However, in late July the government expanded the developer’s target market to include members of pension funds from both the formal and informal sectors.

Before the strategic switch, it was only the National Housing Corporation and National Social Security Fund, among public institutions, which were able to sell houses to the general public.

But even though the public was made part of their target group, WHC reiterated that civil servants would continue to be given preferential treatment whenever demand for houses exceeded supply.

So far, in Dar es Salaam the developer has established six major housing projects: in Magomeni (88), Bunju B (65) and Kigamboni Gezaulole (321).

WHC has 59 in Mwanza, Morogoro (50) and a new project in Dodoma aimed at creating 500 units, where construction is expected to commence in September, next year.

According to Ms Makawia, the firm has successfully sold 290 houses out of 622 units across the country.

“We have sold all 88 houses at the Magomeni project, 30 in Bunju ‘B’ and 100 units in Gezaulole. In Mwanza, WHC has sold a total of 10 houses while in Morogoro42 unit have so far been purchased,” she explained.

According to her, the September project will startwith construction of 39 houses, 20 of which have already been bought.

WHC is partnering with seven public institutions namely: Real Estate Investment Trust REIT, GEPF, PPF, National Social Security Fund (NSSF) and Public Service Pension Fund (PSPF). Other stakeholders are the National Health Insurance Fund (NHIF) and NHC.

“Members of these pension funds have been included in the scheme on condition that they are customers of one the partnering banks to ensure that sales are conducted through mortgages,” she said.

The banking institutions in question are CRDB, NMB, NBC, Exim, Bank of Africa and Azania Bank Ltd.