Commercial Projects

Tanzania Begins Work on 22-Storey Twin Towers in Nairobi

The office complex in Upper Hill will be known as Tanzania Towers.

Updated on

July 1, 2024

An impression of Tanzania Towers in Upper Hill, Nairobi. PHOTO | COURTESY

Tanzania has launched the long-delayed construction of its office complex in Nairobi, aiming to reduce rental costs for its chancery and embassy staff housing.

The project, announced in 2014, is being implemented by the National Social Security Fund (NSSF) as part of Tanzania’s plan to involve its pension funds in implementing projects for the country’s foreign embassies.

Apart from hosting the Tanzanian embassy, a portion of the 22-storey twin towers complex—at the junction of Mara and Hill roads in Upper Hill—will be reserved for business offices.

Dubbed Tanzania Towers, the office complex, initially proposed as a 26-storey building named Umoja House will help Kenya’s neighbour earn foreign exchange.

“The Tanzania Towers will save the government rental expenses for the chancery and embassy staff housing,” Tanzania’s foreign affairs minister January Makamba said during the groundbreaking event on Tuesday, June 18.

The project was estimated to cost Sh3.6 billion in 2014.

The Tanzanian government, whose equity includes the ownership of the plot, will contribute 20 per cent of the project’s share capital while NSSF will cover the remaining 80 per cent.

Sources say Dar es Salaam is betting on Tanzania Towers to generate income to support other diplomatic missions in Africa, aiming to reduce operational costs.

“We want to set up investment centres in strategic areas to generate revenue to meet the costs of our diplomatic missions,” said a senior government official.

Similar projects will be set up in Kigali, Kinshasa, London, New York, and Lusaka.

According to Mr Makamba, the Tanzanian government has approved a new strategy to develop its assets abroad to reduce the budget spent on rent.

“We seek to use professional and world-class real estate entities to develop these assets to earn income for the government and uplift the quality of our embassies and embassy staff housing,” the minister said on X.

Tanzania owns about 101 buildings and plots around the world, most of them in prime areas in major capitals. “In Lusaka alone, we own 11 buildings and plots,” he added.

The nation, which spends Sh1.3 billion a year to rent embassy offices and staff housing, expects to earn Sh1.8 billion per year from its new investments.