NHC projects expand via PPPs as Kariakoo rebuild and Nyumbani Bond move ahead

Friday 7th November 2025

by inAfrika Newsroom

NHC projects are scaling through public–private partnerships as the National Housing Corporation signs new deals and advances a landmark rebuild in Kariakoo, officials said. The corporation also readies a “Nyumbani Bond” to let citizens invest directly in housing developments.

Managers said 21 PPP projects worth about TZS 179 billion have been signed, with 18 already under active construction. Moreover, another 61 projects valued above TZS 600 billion sit in final review. Therefore, the pipeline spans both residential and commercial assets that lift income and diversify risk.

The Kariakoo plan demonstrates the approach. NHC intends to replace 172 old houses with more than 2,100 modern units that blend residential and commercial space. Consequently, the historic market district would gain safer buildings, higher density and new service floors that support trade. Project teams said engagement with local owners remains central to the design and phasing.

NHC projects also target regional city centers. Ongoing builds in Morogoro, Mtwara, Lindi, Singida, Arusha, Tanga, Tabora, Iringa and Bukoba add revenue streams outside Dar es Salaam. As tenants move in, rental cash flow stabilizes; as sales close, capital recycles into new starts. This mix, officials argue, turns a construction wave into a durable business model.

The corporation cites improving finances to support scale. Rental income rose from TZS 7.5 billion in 2021 to TZS 9.4 billion in 2025. In addition, dividends to the Treasury reached TZS 5.5 billion, up from TZS 1 billion four years ago. Assets climbed to TZS 5.47 trillion in 2024, reflecting both completions and revaluations. Analysts say stronger governance and cash controls underpin the figures.

Still, challenges persist. Some tenants default, public entities pay late, and borrowing costs remain high. However, NHC has terminated leases for chronic arrears, introduced deposits for new tenants and connected to the Credit Reference Bureau. It also recommends VAT adjustments and lower interest on affordable mortgages to support end-buyers.

The Nyumbani Bond aims to broaden participation. NHC plans a housing bond that lets households, pension funds and institutions co-finance projects as investors—not only as buyers. Because returns tie to real assets, managers see the bond as a way to deepen capital markets while accelerating delivery.

NHC projects now rely on tighter execution. Teams publish milestones, enforce warranties and phase cash draws to match work on site. Meanwhile, procurement units push for price discipline on steel, cement and finishes to shield budgets from volatility. As a result, the portfolio’s exposure to single-project delays reduces over time.

Policy links matter too. Officials said the pipeline supports industrial jobs, tax receipts and urban renewal. Furthermore, upgraded stock in city cores reduces disaster risk and improves compliance with safety codes. If the PPP wave sustains and the bond launches on schedule, NHC projects could anchor a multi-year building cycle that attracts private capital at scale.