WHC directed to lower house building costs

Angela Kairuki

The Minister of State in the President’s Office, Public Service Management and Good Governance, Ms Angela Kairuki said yesterday that high construction costs is an issue of major concern to be addressed for affordable houses.

“Before executing any housing projects, WHC should consider the level of income of the public servants particularly those receiving the minimum wage, that will determine the ability to pay the housing loan,” she said during the tour to three WHC housing projects in Dar es Salaam.

The project implemented in Dar es Salaam Region are namely Bunju- Mabwepande, Kigamboni-Gezaulole and Watumishi Magomeni Flats. She said it was high time for the housing organisation to consider using less expensive technology in implementing housing projects as over 80 per cent of the public servants do not afford paying houses that cost over 20m/-.

Ms Kairuki said the government was currently working on a number of challenges that increased the prices of houses, including Value Added Tax (VAT) where there are ongoing discussions between the Ministries of Finance and Economic Planning and Lands, Housing and Human Settlement Development.

Others are the inflated prices of lands for undertaking the housing projects, she said the local government should be closely involved in setting aside lands at the lowest cost.

On the installation of services like electricity and water on new housing projects, Ms Kairuki said the government will look at best ways on how to fix the services without affecting the prices of the houses.

Similarly on high interest rates charged by banks, she said the government would hold talks with two banks, the National Microfinance Bank (NMB) and CRDB bank, where salaries of most public servants are channeled on how they can reduce interest rates.She also challenged WHC to find other sources of financing particularly from international organisations like East African Development Bank (EADB) and African Development Bank (AfDB) in order to undertake more housing projects.

Earlier in his remarks, WHC Chief Executive Officer (CEO), Dr Fred Msemwa, said houses sold by the WHC are 10 per cent low in prices compared to any house in the market.

He said the construction costs using the WHC construction company are almost half to that of the hired companies, thus calling for the need to enhance its capacities in order to have at the end low and affordable housing units for the public servants.