The East African Business Times
Date: 26.12.2014
Page 34­37
Article size: 1668 cm2
ColumnCM: 370.66
AVE: 0.0
introducing new products at Standard
housing and the company's image.
NHC targets to build a minimum
15,000 houses for sale by June 2015.
"We have started building houses and
currently, we have projects in 19 regions.
We are still targeting 25 regions."
Tanzania faces an acute shortage of
houses. The country currently has
annual demand of 200,000 plots and a
three million housing gap.
"We have also improved our revenue
by more than 100 percent while
managing our costs. At the same time,
Chartered Bank Tanzania where he was
we have developed good rapport with One of the hardest things he says he
There are few if any business
leaders that can match Ne­
hemiah Mchechu's achieve­
ments. At the age of 32 he was
the Chief Eexecufive Officer
for Commercial Bank of Africa (CBA)
making him the youngest CEO in the re­
gion's banking sector. Additionally, he is
accredited for transforming CBA from a
loss­making organisation to a profitable
one within a year of his tenure.
He was also instrumental in
"NHC makes most money on commercial
property, but it is worth noting that as a
corporation, our greatest promise lies on
providing housing for the general public.
It is difficult to balance, but NHC focuses
on residential properties because that is
where the greatest emotional equity for
the government and the public is." Other
industry related challenges have been
high building costs.
The hardest thing he has ever
done
an Alternative Director, Head of Global the existing tenants and renovated our has had to do has been to downsize
and Co­Head wholesale Banking, It is houses." NHC has also over the past employees during restructuring. "It did
little wonder then that the government been able to reduce the number of court not mean that they wrere useless, but it is
approached him when they needed cases the corporation had by more than just that their strength was not fit for the
someone to reform a moribund National
50 percent. In terms of creating a new organisation.
Housing Corporation (NHC).
refreshing brand, the corporation is
Established through an Act No 45 currently undertaking a brand test in Conclusion
of the Parliament in 1962, NHC was for
which it aims to create a brand the people Mr Mchehu believes the sector is still
long the main property developer in would want to be associated with.
untapped. The economic potential of
the country. Between 1962 and 1974, it
One of the things he is proud of is the housing sector stands at more than
had constructed close to 14,462 housing
units. But due to limited government
budget, coupled with other factors like
the economic crisis in late 1970s to early
80s, rise of oil prices, Kagera war and
building the bridges between NHC US$200 billion inclusive of all the
and banks. Recently, NHC signed a Cumulative Deficit of Houses and the
memorandum of understanding with 12 incremental annual demand.
banks to facilitate lending.
Beyond NHC
later collapse of Tanzania Housing Bank Coming up
He also serves as the chairman of
built reduced.
Serengeti Breweries Ltd and Amboni
Sisal Properties Limited. He is also
(THB) in mid 90s, the number of units NHC is also constructing satellite cities.
The corporation was also responsible
for managing its rental housing stock.
However, it was unable to deliver that
mandate due to the Rent Restriction Act
which favoured the tenants
Already, four cities in Arusha and Dar
es Salaam have been developed. Mr
Mchechu says developers have already
bought a 600 acre land in Burka, Arusha
and plan lo put up 300 residential
housing units in the first phase. Apart
a Board member for KCB Tanzania
Limited. East Africa Breweries Limited,
and Tumaini University where he both
1 leads the Boards Audits Committees. He
is also the director and founding member
"The government was looking for from residential houses. NHC will also
of the CEO Roundtable in Tanzania. He
someone to carry out reforms and that's build other social service centres such
why they came looking for me. My track
record spoke for itself," says Mchechu.
Today he has been able to transform
the NHC, which has a capital base of
USS1.2billion, from a bureaLicracy to
one of the best performing companies in
Tanzania.
as schools. There are another six satellite
also serves in two Committees under the
Tanzania Business Council and that is
cities that will be developed which the Land Development Committee and
include Kibada in Dar es Salaam and
the Public Private Sector Partnerships.
Usa River in Arusha. Mchechu has also
During his spare time, he mentors and
been at the forefront championing the runs leadership programmes for young
formation of a property development people who want to become greater
association that will among other things, people in the society.
promote development through advocacy,
First things first
education, research and ethical
Mr Mchechu hit the ground running. In
standards. He adds that the corporation
the first two years after taking office, he
has been pushing for VAT exemption
did a major overhaul of the corporation.
especially on the sale of new properties
These included recruitment of a new­
for the low income earners. "We have
board and executive team to spearhead
brought in a positive change in the sector
the corporation's efforts to become the
and we are not going to rest until the
top estate developer by 2015. Together
industry becomes better."
with the team, they developed a Business
Strategic Plan for the corporation.
Challenges
The plan envisaged the role NHC Coming from the private sector to join
was going to play in increasing the government, Mchechu says it has not
sector's contribution to the GDP to four been a rosy affair. "Transforming a
percent. As it stood then, the sector only government organisation to operate like
contributed one percent.
a private institution is not easy. You will
MrMchechu says the plan banked have to deal with a lot of interference
on six areas; property development, from politicians as well as the red tape."
property management, operations and He adds that it has also been difficult
control of the projects, human resource,
balancing public's perception with the
contracts, empowerment of the national
corporation's need to be profitable.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
The East African Business Times
Date: 26.12.2014
Page 34­37
Article size: 1668 cm2
ColumnCM: 370.66
AVE: 0.0
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
The East African Business Times
Date: 26.12.2014
Page 34­37
Article size: 1668 cm2
ColumnCM: 370.66
AVE: 0.0
NHC Medeli Residential Apartments Phase II Dodoma.
NHC MAKES MOST
MONEYON COMMERCIAL
PROPERTY, BUT IT IS
WORTH NOTING
THAT ASA
CORPORATION,
OUR GREATEST PROMISE UES
ON PROVIDING HOUSING FOR
THE GENERAL PUBLIC."
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
The East African Business Times
Date: 26.12.2014
Page 34­37
Article size: 1668 cm2
ColumnCM: 370.66
AVE: 0.0
Golden Anniversary Towers Residential Apartments
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya