Mpango directs speedy loans for Watumishi Housing Investments

Dodoma. Vice President Dr Philip Mpango has directed the Ministry of Finance to expedite the process that will enable Watumishi Housing Investments (WHI) to secure loans from various financial institutions to scale up the construction of more affordable homes for public servants.

Additionally, he called on the two ministries within the President’s Office — Public Service Management and Good Governance, as well as Regional and Local Administrative Government (RLAG) — to ensure the institution is provided with nearby plots of land at affordable costs, allowing homes for public servants to be built close to their workplaces.

Dr Mpango made these remarks today, Wednesday, 11 December 2024, during the official launch of the Public Servants Housing Scheme (PSHS) and the inauguration of over 200 new houses. The initiative aims to provide affordable housing under favourable terms.

Since its inception, the programme has successfully constructed 1,006 houses across 19 regions over the past decade.

“For this programme to achieve its goals, I instruct the Ministry of Finance and its team to fast-track the process that will allow WHI to access affordable loans, enabling the construction of additional houses, especially in rural areas,” he said.

He also urged WHI to ensure the houses they build are durable enough to accommodate public servants and their growing families for over 30 years, while maintaining high quality and favourable conditions.

Furthermore, he suggested that WHI explore alternative sources of funding, such as selling bonds and partnering with insurance companies, banks, and other financial institutions.

WHI Chief Executive Officer Dr Fred Msemwa stated that Sh150 billion is required to scale up the construction of affordable housing.

He expressed confidence that the funds would help the institution achieve its target of building 5,000 houses by 2027.

He reflected on the organisation’s journey since its establishment in 2014, highlighting the challenges, lessons, and successes experienced in serving public servants with affordable, quality housing.

“Through our work, we’ve gained valuable experience and demonstrated that housing is both a service and a product. Owning a home is closely linked to financial stability, and we’ve seen how our efforts have helped public servants acquire homes and improve their work performance,” he noted.

Minister George Simbachawene, from the President’s Office (Public Service Management and Good Governance), explained that the initiative was conceptualised by the government 10 years ago to address the difficulties faced by public servants in affording houses on the open market due to high costs and stringent requirements.

The programme has so far succeeded in constructing over 1,000 homes across 19 regions.

Despite these achievements, he admitted that the institution still faced significant challenges, including the high cost of land acquisition, which ultimately impacts buyers.

“We urge our colleagues in RLAG to address this issue and allocate land to facilitate the construction of affordable housing for more public servants, particularly in rural areas,” he said.

The institution is now prioritising the construction of houses in rural areas, where private developers are less active.

While progress has been made, providing housing for workers in these areas remains a significant challenge.

“I commend the efforts of WHI given their limited resources and experience, but greater support is needed to expand rural housing construction. I thank the Ministry of Finance for considering providing a loan to facilitate this expansion,” he added.