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Tanzania embarks on embassy property projects to cut costs, boost revenue

Minister for Foreign Affairs and East African Cooperation, Ambassador Mahmoud Thabit Kombo, speaks in Parliament while presenting his ministry’s revenue and expenditure estimates for the 2025/2026 financial year in Dodoma today, May 28, 2025. PHOTO | EDWIN MJWAHUZI

Dodoma. The government has embarked on a series of strategic property investments at Tanzanian embassies abroad aimed at reducing operational costs and generating income.

Presenting a budget proposal of Sh340.5 billion for the 2025/26 financial year in Parliament yesterday, the Minister for Foreign Affairs and East African Cooperation, Mr Mahmoud Thabit Kombo, said the ministry is continuing to implement its Strategic Plan for the Development of Government-Owned Plots Abroad.

He told the House that construction has commenced on a commercial building at the Tanzanian Embassy in Nairobi, Kenya.

The project, located in the Upper Hill area, is being implemented through a public-private partnership with the National Social Security Fund (NSSF).

“The Kinshasa project will follow a similar model,” said Mr Kombo, revealing that the ministry has entered into a legal agreement with NSSF for the development of a 25-storey commercial building at the Tanzanian Embassy in the Democratic Republic of Congo’s capital.

In a further cost-saving measure, the minister announced that the government has completed the purchase of the building currently housing the Tanzanian Embassy in Windhoek, Namibia.

Located at Plot No. Erf 8040, Block K, Nachtigal Street, in the Khomas area, the building will be used for official purposes. Mr Kombo said the acquisition will save the government an estimated Sh437.5 million annually in rent.

“These initiatives reflect our commitment to reducing foreign mission expenses while increasing the value of government assets,” the minister said.