First Housing bond raises Sh33 billion, boosting affordable housing prospects

Dar es Salaam. Efforts to address Tanzania’s housing deficit have received a major boost after First Housing Finance Limited’s MAKAZI bond raised more than Sh33.08 billion, significantly exceeding its initial target and signalling strong investor confidence in the country’s capital markets.

Speaking during the listing of the bond on the Dar es Salaam Stock Exchange (DSE) on Monday, June 9, 2026, Capital Markets and Securities Authority (CMSA) chief executive officer Nicodemus Mkama said the funds would help expand access to housing finance and support broader economic growth.

The bond surpassed expectations by achieving 661.1 percent of its fundraising target. While the company had initially sought to raise Sh5 billion, investors subscribed to more than Sh33 billion.

Mr Mkama said the proceeds would strengthen First Housing Finance’s liquidity position, enabling it to extend more home loans to Tanzanians.

“The funds raised will enable First Housing Finance to provide mortgages to more citizens, a move that will stimulate growth in the construction sector, improve housing conditions and encourage investment in housing development,” he said.

He noted that the overwhelming response reflected growing confidence in both the company and Tanzania’s capital markets. According to CMSA data, individual investors accounted for 96.63 percent of subscribers, while domestic investors made up 96.03 percent of total participation.

Mr Mkama attributed the success partly to reforms introduced by the government and financial sector stakeholders, including the removal of withholding tax on corporate and institutional bonds, the reduction of the minimum investment threshold to Sh500,000 and quarterly interest payments.

He added that the MAKAZI bond supports implementation of the Financial Sector Development Master Plan and the National Economic Empowerment Policy by mobilising resources for housing development, job creation and wealth generation.

The listing has also increased the value of Tanzania’s corporate bond market by 1.63 percent to Sh2.06 trillion, up from Sh2.03 trillion previously.

Mr Mkama encouraged investors to continue taking advantage of opportunities available in the capital markets and urged both public and private institutions to consider raising funds through the market to finance business expansion and development projects.

For her part, acting chief executive officer of the Dar es Salaam Stock Exchange, Mery Mniwasa, congratulated First Housing Finance on the successful bond issuance.

“The target was Sh5 billion, but investors subscribed over Sh33 billion. This demonstrates the strength of investment appetite in the country and confidence in the housing finance sector,” she said.

First Housing Finance chief executive officer Amulike Kamwela said the funds would help the institution expand mortgage lending and support more Tanzanians in acquiring decent housing.

“There remains a significant housing challenge in the country. The resources raised through this bond will enable us to reach more people with affordable housing finance solutions,” he said.