By Business Insider Reporter
The government has issued a stern warning to land hoarders, signalling that plots left undeveloped for prolonged periods will be repossessed as Tanzania steps up efforts to address inefficient land use and the growing housing deficit.
The Minister for Lands, Housing and Human Settlements Development, Dr. Leonard Akwilapo, said his ministry is prepared to take firm action against speculative landholding, citing provisions in existing legislation.
Speaking at the opening of the National Housing Corporation (NHC) Workers’ Council General Meeting in Arusha on Tuesday, February 11, 2026, Dr Akwilapo said he is considering invoking Section 49 of the Land Act No. 113 to reclaim land that has remained idle for years.
“The law requires landowners to develop land, not to hoard it,” he said. “Some people put up temporary guard huts and claim development. That will not be accepted. Proper structures are required, and such land will be repossessed in accordance with the law.”
Targeting speculative land holding
The Minister criticised the practice of acquiring large tracts of land solely for speculation, noting that some owners use undeveloped plots as collateral for bank loans while failing to invest in housing or productive projects.
“This situation is unfair when many Tanzanians are actively seeking land to invest in modern housing and other development initiatives,” he said, adding that land must support the country’s broader human settlements and urban development agenda.
The warning comes as urban centres face increasing pressure from rapid population growth, rising land prices and limited access to serviced plots – factors that have contributed to a national housing deficit estimated at about 3.8 million units.
NHC urged to scale up affordable housing
Dr. Akwilapo commended NHC for actively developing its land through various housing and commercial projects, noting that the corporation’s approach contrasts sharply with speculative landholding.
In 2025, NHC posted a profit of TSh 58.86 billion, a performance the Minister attributed to effective cooperation between management and staff. He urged the corporation to build on this momentum by accelerating the delivery of affordable and modern housing.
“The construction of decent and affordable housing is a government priority,” he said. “With a housing deficit of about 3.8 million units, this challenge also presents a significant business opportunity for NHC.”
He called on the corporation to reduce construction costs, intensify project implementation and ensure that more Tanzanians can access quality housing at reasonable prices.
“When citizens look at NHC, they see quality housing and a capable institution that can turn the dream of decent homes into reality,” he added.
Governance, revenue and institutional strengthening
The Minister also emphasised the importance of strengthening NHC’s revenue systems, including rent collection and debt recovery, in line with existing laws and regulations to safeguard the corporation’s financial sustainability.
He urged the timely completion of projects to help ease the housing shortage and called for stronger internal financial management systems to minimise revenue leakages.
In addition, Dr Akwilapo underscored the need to reinforce good governance, eliminate corruption and inefficiency, and uphold public service ethics, particularly transparency and integrity.
On labour matters, he asked employees to remain patient during the six-month period set aside for improvements to the Staff Conditions of Service, noting that all legal and administrative procedures must be followed before final approval.
NHC balance sheet expands
Welcoming the Minister earlier, NHC Director General Hamad Abdallah said the corporation exceeded its 2025 profit target, recording TSh 58.86 billion – equivalent to 138 per cent of its annual goal.
“Our balance sheet has grown to approximately TSh 6.4 trillion this year, up from about TSh 5.5 trillion at the time of this meeting last year,” Abdallah said. As the government tightens oversight on land use and pushes for more efficient urban development, NHC is increasingly being positioned as a key driver of sustainable human settlements – balancing commercial performance with a critical national housing mandate.
