The government has pledged to strengthen access to affordable housing for low-income Tanzanians by working closely with financial institutions to expand the availability of low-cost housing loans.
Deputy Minister for Finance Mshamu Ali Munde said the government will continue collaborating with financial sector stakeholders, including the Tanzania Mortgage Refinance Company (TMRC), to enable financial institutions to access cheaper funding that will ultimately help low-income households secure decent housing.
Speaking in Dar es Salaam while launching a new micro-housing loan facility, Munde said the initiative is part of broader government efforts to address the country’s housing challenges, particularly among citizens with limited incomes.
The micro-housing loan service has been introduced by the Tanzania Mortgage Refinance Company in partnership with Habitat for Humanity International.
The programme aims to mobilise Sh30 billion in liquidity to enable financial institutions to offer small housing loans to low-income earners, allowing them to build, improve or own decent homes.
Munde, who officiated the launch on behalf of Finance Minister Khamis Mussa Omar, said the government welcomes such initiatives because they directly address barriers that prevent many citizens from accessing formal housing finance.
“The government supports initiatives like this that seek to tackle housing challenges, particularly for low-income citizens who face major obstacles in accessing formal loans due to lack of collateral or irregular incomes,” he said.
He noted that expanding access to affordable housing finance is key to improving living conditions for many Tanzanians while supporting the government’s wider agenda of ensuring access to decent housing.
During the launch, TMRC Chief Executive Officer Elibariki Ndossi said the initiative is designed to make housing finance more inclusive by enabling financial institutions to provide smaller and more flexible loans.
He said the programme aims to help more Tanzanians gradually acquire decent homes by offering financing options tailored to people who may not qualify for conventional mortgage products.
Housing Microfinance Director at Habitat for Humanity Tanzania, Daniel Mhina, said the project will ease some of the strict requirements that often prevent low-income earners from accessing housing loans.
He explained that under the programme, borrowers will not necessarily be required to present fixed property collateral in order to access the loans, making the facility more accessible to many households.
Research conducted by the partners shows that only about three percent of Tanzanians currently access mortgage services, largely due to strict loan conditions and affordability constraints.
Since its establishment in 2010, the Tanzania Mortgage Refinance Company has played a key role in expanding Tanzania’s housing finance market.
Mortgage financing supported by the institution has grown significantly from Sh76.7 billion to Sh745 billion by 2025, reflecting rising demand for housing loans.
Officials say the newly launched micro-housing loan facility is expected to further widen access to housing finance and help more low-income Tanzanians realise their dream of owning decent homes.
