Dar es Salaam. Minister of State in the President’s Office (Public Service Management and Good Governance), Mr Ridhiwan Kikwete, has directed Watumishi Housing Investment (WHI) to diversify its financing sources in order to scale up the construction of affordable homes for public servants.
Mr Kikwete said Tanzania’s Vision 2050 requires the delivery of one million housing units—a target he insisted cannot be met if WHI continues to rely heavily on government budget allocations, which are already overstretched by competing national priorities.
Speaking during a meeting with WHI staff shortly after being sworn in, the Minister issued several directives aimed at strengthening the institution’s operational efficiency and enhancing its profitability.
“The government budget must finance schools, health centres and other national priorities. If WHI depends on it alone, the dream of reaching one million homes will not be realised.
You must seek financing from multiple institutions to achieve your target of thousands of houses. The government budget will only facilitate,” he said.
He also instructed WHI to embrace digital solutions that enable public servants to browse, apply for and purchase homes remotely.
“We are living in a digital era. People no longer have the time to visit project sites physically. If possible, an employee should be able to buy a house from anywhere in the country,” he said.
Mr Kikwete commended WHI for establishing the Faida Fund, describing it as an innovative and well-performing initiative, but urged the institution to raise the visibility of its products. “You must widely publicise your housing projects and the Faida Fund.
Many Tanzanians complain simply because they are unaware of the projects already completed. Public education is essential,” he said.
He further stressed that quality must remain central to all construction works, urging WHI to adopt modern, cost-efficient technologies that do not impose additional financial burdens on public servants.
Speaking yesterday, WHI acting chief executive officer, Mr Stephane Solomon, said the institution manages two funds—the Housing Fund and the Faida Fund—both of which are performing strongly with plans for further improvements.
“The Faida Fund has reached Sh49 billion, and by June next year its value is expected to reach Sh54 billion, with dividends for investors expected to rise beyond the current 13.9 percent,” he said.
“In this financial year, we expect to complete the construction of 221 houses in Dar es Salaam and Dodoma, particularly in district areas, to ensure teachers working in those locations are provided with proper housing and to ease shortages.”
He added that construction is ongoing in various regions due to growing demand for housing. “Currently, the sales rate of our houses is about 18 percent, but we continue to request the government to consider reducing certain taxes on construction materials so that workers can purchase these houses at a rate lower than 18 percent,” he added.
To boost employees’ income, WHI has introduced the e-Wekeza system, which enables public servants to invest by contributing a minimum of Sh57,000 and earn profits.
Finance Director Mr Pascal Massawe said that by November, more than 800 employees had invested a total of Sh54.8 million through the system, which was launched in June this year.
“The aim is to help public servants secure an additional source of income upon retirement rather than relying solely on their pension.
We began with 200 employees, and within a short period the number has reached 800. By the end of the year we expect the figure to surpass 1,000,” he said.
Mr Massawe added that the next major focus will be expanding public education so employees can utilise the platform fully, noting that salary-based deductions will bring significant transformation in the coming two years.
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