Strategies for housing finance for the low income earners in Tanzania: the case study of Dar es Salaam

The government of Tanzania has proposed as well as implemented different strategies with expectation of solving housing problems in the country. Many of these strategies have failed. Therefore this study provides appropriate housing finance strategies for the low income earners in Tanzania. It has proposed alternative strategies to the unsuccessful past strategies initiated by the Tanzania Government in solving housing problem facing low- income earners. A number of technique i.e survey, literature review, and modeling hava been employed as methodology in this study. The study came out with the following results; housing loan in Tanzania is unaffordable by low-income earners. Housing loan is a new service in Tanzania. Informal housing finance mechanisms are the most appropriate strategies for the low- income earners in Tanzania. There is high demand for low-income category of housing in Tanzania. Establishment of micro-finance bank for housing is the best option that will enable low-income earners to finance their own houses. This study has investigated the nature abd scale of housing finance for the low-income group in Dar es Salaam. The author has recommended the following, existing banks should br restructured. Independent low- income earners association should be established. Income/wage levels should be increased. Establishment of micro-finance bank for housing, saving and building associations is essential. Lastly there is a need of integrating low income housing finance problem with the poverty alleviation strategies.