Dar es Salaam. Tanzania Mortgage Refinance Company Limited (TMRC) has launched its second Medium-Term Note Programme (MTN II), aiming to expand access to affordable housing finance amid a growing national housing deficit.
Under the MTN II arrangement, TMRC has been approved to raise Sh100 billion, with the first tranche—dubbed the “TMRC Nyumba Bond”—targeting Sh20 billion. Proceeds from the bond will be used to refinance mortgage loans issued by banks and other financial institutions, with the goal of improving liquidity and enabling lenders to offer more affordable long-term housing loans.
Speaking during the launch yesterday, TMRC Chief Executive Elibariki Ndossy said the bond is a strategic initiative designed to improve access to decent housing for more Tanzanians.
He said the five-year bond carries an annual interest rate of 11 per cent, with interest payments to investors made semi-annually. The subscription period opened on May 6, 2026 and is expected to close on June 3, 2026.
Mr Ndossy noted that the launch comes at a time when Tanzania faces a housing deficit estimated at about three million units, with annual demand rising by approximately 391,000 units.
“This bond will help address the housing challenge in the country and enable Tanzanians to access decent and affordable homes,” he said.
Bank of Tanzania Deputy Governor Yamungu Kayandabila commended TMRC for the initiative, describing it as an important step towards narrowing the housing gap.
“What TMRC has done is commendable and deserves recognition, as it will help reduce the housing gap,” he said.
He noted that mortgage penetration in Tanzania remains low compared to other East African countries, calling for increased efforts and public awareness to improve access to housing finance.
“We are still lagging in East Africa, as housing loan penetration remains low. More effort and public awareness are needed to improve access to mortgage financing,” he said.
Dr Kayandabila added that the Bank of Tanzania will continue supporting initiatives aimed at expanding mortgage lending and strengthening the housing finance sector.
Capital Markets and Securities Authority (CMSA) Acting Chief Executive Officer Mr Exudi Julius said the authority approved the bond after TMRC met all regulatory requirements, ensuring transparency and investor protection.
He said the bond is intended to raise funds for mortgage lending, improve housing conditions and support investment in the housing sector.
Mr Julius said the initiative aligns with national development priorities and encouraged the public to explore opportunities in the capital markets, noting CMSA’s commitment to promoting inclusive economic growth.
