NHC set for improved governance, efficiency after law amendment

Tabling the Bill in the National Assembly, Lands, Housing and Human Settlement Development minister Deogratius Ndejembi said the changes will enable NHC to operate with greater accountability and better alignment with national policies on public sector investment and service delivery.

“The proposed amendments are geared towards enhancing the corporation’s efficiency, streamlining management structures and aligning the law with current financial realities,” said Mr Ndejembi.

One of the most notable changes is the transfer of the power to appoint the NHC director general from the minister to the President.

According to Mr Ndejembi, this move is meant to strengthen good governance and ensure that top leadership at the corporation is appointed through a higher level of scrutiny.

A new section has also been introduced to separate the director general’s appointment process from the employment of other staff, a move the government says will enhance legal clarity and institutional order.

The amendments further empower the NHC board to form specialised committees to assist in fulfilling its mandate. At the same time, the board will now be able to make investment decisions without requiring ministerial approval, in line with the Treasury Registrar’s guidelines on public investment.

Operationally, the amendments seek to widen the corporation’s revenue base by allowing government subsidies to be included as a source of income. This, the government says, will enhance the corporation’s ability to fulfil its housing mandate.

The director general will also be allowed to delegate signing authority for a wider range of documents beyond lease agreements, a move aimed at accelerating contract finalisation and service delivery.

Employees of NHC who rent corporation houses will now be required to pay rent directly, just like private tenants, with employers no longer obliged to deduct rent from their salaries. This shift is intended to boost accountability among tenants and ease revenue collection.

The amended law imposes stiffer penalties on individuals who disclose confidential information, provide false data or obstruct NHC staff during inspections.

These measures are designed to reflect current economic realities and the seriousness of such offences.

Sections related to dormant funds—the Guarantee Fund and General Reserve Fund—have been repealed, with the government citing their lack of use and relevance in NHC’s current operations.

Additionally, the Corporation will no longer have the authority to guarantee loans, aligning the law with the Government Loans, Guarantees and Grants Act (Cap 134).

“This is an important step towards transforming NHC into a modern, performance-driven institution,” Mr Ndejembi said.

Committee commends

The Parliament’s Committee for Lands, Natural Resources and Tourism commended the government for the reforms which it said accommodated recommendations from the team which acted on behalf of the lawmakers.

“Legal reforms aimed at improving the implementation of the National Housing Corporation’s operations will be more effective if the corporation is empowered through enhanced oversight in debt collection and project execution. The committee advises the government and its institutions that occupy NHC properties to settle all outstanding debts to enable the corporation to function as intended,” said the committee chairperson, Mr Timotheo Mnzava.