Arusha. The National Housing Corporation (NHC) plans to invest Sh24.5 billion in a major redevelopment of historic streets in Arusha city centre, raising the total value of the project to Sh64.5 billion as the city prepares for the Africa Cup of Nations (AFCON) 2027.
The project, known as Sokoine Square, will involve demolishing old buildings along Masai, Swahili, Azimio and Sokoine streets to pave the way for multi-storey buildings incorporating commercial and residential facilities.
NHC Information and Public Relations Manager, Mr Yahya Charahani, told The Citizen’s sister newspaper Mwananchi on Sunday, November 1, 2026, that the project would take 18 months to complete and significantly transform Arusha’s skyline in line with the city’s new master plan, which prohibits buildings of fewer than six storeys in the city centre.
He said an economic assessment of the project indicated significant financial benefits for both the corporation and the city.
The redevelopment will increase the number of tenants from the previous 43 to 350, comprising 250 commercial spaces and 100 residential units.
‘This project will bring a major transformation to Arusha. We will increase the corporation’s annual revenue from Sh266 million to Sh4.8 billion, enabling us to expand further by developing new projects in line with our objectives,’ said Mr Charahani.
He added that the construction cost was estimated at Sh24.5 billion, while the overall project value would reach Sh64.5 billion to be implemented within 18 months.
To safeguard the interests of the 43 former tenants affected by the redevelopment, Mr Charahani said NHC had held consultations and reached an agreement on the relocation arrangements.
He said after issuing the statutory 30-day notice, the corporation granted the tenants an additional 90 days following their request for more time, although they had initially sought 180 days.
The extension allowed them to make arrangements before construction permits were obtained and demolition work began.
NHC Arusha Regional Manager Nistas Mvungi said all former tenants would be given priority when the new facilities became available.
He said the corporation was communicating with representatives of the former tenants to establish their readiness to return under the new rental terms and conditions.
Furthermore, Mr Mvungi added that former business operators would be allowed to inspect the approved project designs so they could select premises suitable for their businesses before the remaining spaces were opened to the public.
He said NHC was committed to completing the commercial section of the project as early as possible to enable businesses to benefit from the anticipated economic activity surrounding the 2027 Africa Cup of Nations finals.