Tanzania launches ambitious real estate venture with construction of twin towers in Nairobi

Dar es Salaam. Tanzania's diplomatic and economic ambitions took a new direction on June 18, with the launch of the construction of the Twin Towers in Upper Hill, Nairobi.

The monumental real estate venture, a joint effort between the National Social Security Fund (NSSF) and Tanzania's Ministry of Foreign Affairs, promises to redefine Nairobi's skyline while consolidating Tanzania's diplomatic presence in Kenya.

Tanzania currently spends up to Sh29 billion which is allocated to embassies across the world for rentals for offices and residential buildings.

Making the announcement Tanzania’s foreign affairs minister January Makamba said the Twin Towers will stand tall with 22 floors each, strategically housing both commercial offices and residential spaces.

Notably, the complex will serve as the new home for Tanzania's embassy in Kenya, underscoring the project's dual significance in enhancing diplomatic operations and fiscal prudence.

"We are honored to embark on this transformative project," stated Tanzania's Minister of Foreign Affairs January Makamba on his X page.

At the launch he will be joined by Kenya's Prime Cabinet Secretary and Foreign Minister, H.E. Musalia Mudavadi, along with esteemed colleagues from Kenya's government and Tanzania's leadership.

According to Makamba, the initiative not only signifies a step forward in architectural prowess but also a strategic move to reduce government rental expenditures.

"The Tanzania Towers will save significant foreign exchange expenditure currently allocated to embassy rentals,” he said.

"This investment is projected to not only offset rental costs but also generate substantial income for the Tanzanian government."

Highlighting Tanzania's broader real estate strategy, Mr Makamba said, "Our government owns approximately 101 properties globally, strategically positioned in major capitals. Through partnerships with top-tier real estate entities, we aim to maximize these assets' potential, enhancing both revenue streams and the quality of diplomatic facilities."

The financial implications are substantial, with the government anticipating a shift from current annual expenditures of Sh29 billion on embassy rentals to an estimated TZS 36 billion in annual income from its real estate investments.

The first phase of this ambitious plan targets cities including Nairobi, Kigali, Kinshasa, London, New York, and Lusaka.

As construction commences, the Twin Towers symbolize Tanzania's commitment to leveraging its real estate portfolio for economic gain and diplomatic efficiency.

Last month while presenting his docket’s budget, Janaury Mkamba said the government was embarking on an ambitious project to build residential, official and commercial buildings in several countries in an effort to boost revenues for the Foreign Affairs ministry.

According to him Sh150 billion was earmarked  for the construction a 25-storey building  in Kinshasa, Democratic Republic of Congo (DRC); Sh127 billion for the construction of offices and an economic investment in Nairobi, Kenya; and Sh66.1 billion for the construction of offices, ambassador residences, and economic investments in Lusaka, Zambia.

The planned construction of embassy and commercial buildings for Tanzania will also include the government’s properties in Kampala, Uganda and Abuja, Nigeria among others.

The construction projects will be executed in partnership with private entities in the said countries.