Foreign Affairs’ deputy minister Mahadhi Maalimu last week told Parliament that the project, which will be implemented by the National Social Security Fund (NSSF), is part of Tanzania’s plan to involve her pension funds in implementing projects in the country’s foreign embassies.
“The Ministry of Foreign Affairs is in the final stages of dialogue with the NSSF to enable the fund to implement the project at Tanzania’s embassy in Nairobi,” he said.
The initial construction cost of the 26-storey complex, which will be known as Umoja House, is estimated at Sh3.6 billion.
The government, whose equity in the project includes the ownership of the plot in Upper Hill, will contribute 20 per cent of the project’s share capital while NSSF will foot the remaining 80 per cent.
Sources familiar with the matter say Tanzania is betting on Umoja House to generate income to cater for other diplomatic missions in Africa, in a bid to reduce operational costs.
“We want to set up a number of investment centres in strategic areas to generate revenue to meet the costs of our diplomatic missions around the globe,” said a senior ministry official.