WHI use deduction code to simplify housing payment

TANZANIA: THE government has advised Watumishi Housing Investment (WHI) to implement a deduction code system to simplify the collection of payments for houses sold to public servants.

Currently, Watumishi Housing Investment (WHI) is directly collecting house payments from civil servants who have taken out loans from them after being paid by the Treasury.

In response to this, President’s Office (Good Governance and Public Service Management), Deputy Minister, Deus Sangu directed WHI to adopt the deduction code immediately, as it has already been developed.

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Mr Sangu, during his visit to WHI on Monday, stressed that building houses and collecting loan payments are distinct processes.

He emphasized the need for a well-structured system to facilitate loan repayments and ensure the sustainability of WHI’s housing projects.

The deduction code would simplify the debt collection process, increase investment and ultimately enable public servants to obtain better housing at more affordable prices.

The Deputy Minister advised WHI to consult his office for assistance in implementing the deduction code system and addressing any potential challenges.

He also urged WHI to maintain high construction standards for both government and private projects to attract clients.

Mr Sangu commended WHI for its use of in-house designers and consultants, which has contributed to the quality of their construction projects.

He encouraged WHI to collaborate with local councils, especially those in new areas, to secure land for housing development.

He suggested that WHI enter into Memoranda of Understanding (MoUs) with councils to negotiate favourable land deals and enable public servants from various regions to own houses within their areas.

The WHI Executive Director, Dr Fred Msemwa, said they were discussing with Treasury before staring implementing the system.

WHI has constructed a total of 1003 houses in 19 regions and recently, they signed an agreement to build 101 residential houses in Mikocheni, Dar es Salaam.

This project is part of a larger plan to build 218 houses in Dodoma, Lindi, Mtwara, Singida, Coast and Ruvuma regions during the 2024/25 financial year.

WHI operates as a fund manager under the Real Estate Investment Trust (REIT) and the Collective Investment Scheme (CIS), managing the Faida Fund.