Tanzania has made a groundbreaking move by starting the construction of twin towers in Kenya's capital, Nairobi.
The 22-floor towers, located in the high-end area of Upper Hill, will serve as the Tanzania High Commission to Kenya and also function as an investment property.
This significant real estate project not only makes a bold architectural statement for the Tanzanian government but also demonstrates its commitment to reducing rental expenses for the chancery and embassy staff housing.
During the event in Nairobi yesterday, the Minister for Foreign Affairs and East African Cooperation, January Makamba, emphasized that this project is part of the sixth phase government's strategy under President Samia Suluhu Hassan to effectively utilize its overseas plots and buildings to increase revenue collection.
The government has partnered with world-class real estate entities to develop these assets and generate income.
"Today, we are beginning the construction of twin towers with 22 floors each in Upper Hill, Nairobi. This real estate investment, a collaboration between the National Social Security Fund (NSSF) and Tanzania's Ministry of Foreign Affairs, will house our embassy and serve as a source of income for the government," Makamba stated.
He added that the towers, which will contain residences and offices, will add beauty to the Nairobi skyline.
"It will not only earn the government much-needed foreign currency but also save government rental expenses for the chancery and embassy staff housing."
"We are delighted that NSSF management, the investment committee, and the whole board have found this investment profitable," Mr Makamba said.
This development also signifies a significant step forward in commercial diplomacy between Tanzania and Kenya, he said.
Mr Makamba said that the venture symbolizes the deepening economic ties and mutual investment opportunities between the two neighboring East African Community (EAC) allies.
He said that by investing in Kenya's capital, Tanzania not only bolsters its economic footprint in the region but also reinforces the collaborative spirit that drives East Africa's growth.
These towers, once completed, are poised to become iconic landmarks, reflecting the strength and ambition of Tanzanian-Kenyan relations," he said.
The government of Tanzania owns about 101 buildings and plots around the world, most of them in prime areas in major capitals. In Lusaka, Zambia alone, Tanzania owns 11 buildings and plots.
"In the new strategy, which the government approved recently, 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.
Tanzania spends about 29bn/- annually on rent for embassy offices and embassy staff housing.
"In the new plan, the government will instead earn about 36bn/- per year from these investments," explains Mr. Makamba.
Speaking at the event, the Minister of State in the Prime Minister's Office, Labour, Employment, Deo Ndejembi, said the decision to build the twin towers was based on the analysis by experts and how the project would generate revenue for the government.
"NSSF has an Investment Committee which, in collaboration with the Board of Directors and our investment experts, looked at this project and assured themselves that it would be beneficial for our country. At the moment, our focus is on projects that are beneficial and of national interest," Mr. Ndejembi said.
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The Kenyan Prime Cabinet Secretary and Minister for Foreign and Diaspora Affairs, Musalia Mudavadi, praised Tanzania's move to build the towers, saying it will be one of the lasting symbols of friendship between the two countries.
Mr Mudavadi said the Kenyan government had also learned something about how to use the funds of institutions like NSSF to make investments to generate more, and that in the long run, Kenya would follow Tanzania's footsteps.
The government is planning to initiate similar projects in Kigali, Kinshasa, London, New York, and Lusaka.
