Housing sector revamped with NHC, TMRC involvement
One of the things which President Jakaya Mrisho Kikwete vowed to address when seeking re-election in 2010 was shortage of residential housing for middle and lower income families. The President tasked National Housing Corporation (NHC) Director General, Nehemia Mchechu and his management to mobilize resources and construct 15,000 housing units including 5,000 low cost units. "Housing especially in in urban areas has become a major problem which my government is committed to address,"Kikwete said while pledging that his government will assist NHC mobilize resources to meet the challenge. Minister of Land, Housing and Human Settlement Development, William Lukuvi said under Kikwete's administration, NHC has regained its lost glory. Lukuvi said, most of the housing projects being undertaken by NHC and other developers are sold out before completion, thanks to TMRC and its partner commercial banks. Since its creation, TMRC mortgage loans' average duration has gone down 5-10 years to 15-20 years. "Furthermore, the number of institutions offering mortgage loans has increased from three to 19 banks, while interest rates have dropped from 22% in 2010 to 16% now due to increased competition," said TMRC CEO, Oscar Mgaya.