Thursday, January 24, 2013

Kaloleni: Backyard estate that is wetting investors’ appetites

By Zephania Ubwani, The Citizen Bureau Chief

Arusha: Kaloleni never used to be an attractive place in Arusha in the past either as a residential area or a site  on which to set up business ventures.

Until the 1970s, much of what now makes the contested area was a farmland owned by peasants who were later pushed into the hinterland as the town expanded.

There were some scattered houses though.

But one businessman who was born and grew up there would recall how the area was notorious for crime, being a centre of local brews and illicit spirits. The notoriety earned it the name of Qibla.

But the suburb was famous for having a residential estate for junior government employees from the colonial days. This may have continued to be the case to date if the occupants of the houses to be demolished are still public servants.

Though covered with tiles, most of them are tiny living units and some old to the point of crumbling. Few others have one storey.

For decades, the structures have remained more or less the same despite some repairs often done by the tenants themselves.

It was when Arusha’s   growth picked momentum, especially with it becoming the headquarters of the former East African Community (EAC) from 1967 to 1977, that the fortunes for Kaloleni started to change.

The entire area was surveyed and plots allocated to developers. But much of it remained a residential suburb, save for one of the oldest primary schools in town (Kaloleni) and a health centre.

The suburb gained more prominence as a residential quarters for the public servants when the EAC constructed grade C houses in the 1970s; again, as was the case for the colonial government, for the junior officers.

By the late 1970s, individual houses sprouted like mushrooms. A decade later, the area had been well built and, as expected, many houses were turned into guest houses, bars, restaurants and retail shops.

Enter the 1990s when high rise buildings started to appear on the skyline of  what was then considered a backyard suburb of Arusha.

It was from around the year 2000 that major investments began to flow into the area which had been virtually turned into a zone for bars, guest houses and eating joints.

Kaloleni's proximity to the Arusha city centre, shopping area, the main stadium and the central bus station plus relative peace (less
crime) made it a haven of investor both public and private.

The first major investor was the Parastatal Pension Fund (PPF) which constructed an office block and residential complex along the Moshi-Namanga road.

This was soon to be followed by a string of high rise hotels while old guest houses were upgraded with added facilities to attract more customers. At the same time, residential houses were turned into shops and lodges.

Hotels which came up included Hotel AM, Stereo, Palm Springs, Williams, Bristol and a host of others under construction or lodges being refurbished.

The most conspicuous major building investments under construction now are the 15-storey Parrot Hotel and a similar size NSSF Plaza, all along the Col. Middleton Road.

The Arusha International Conference Centre (AICC), the leading landlord in town with over 650 residential units rented out, has not been left behind in the craze for investments in Kaloleni area, also known as Soweto.

The parastatal is planning to pull down 18 blocks comprising of 72 living units and put up modern shopping outlets, a few metres from the towering NSSF Plaza near the Florida round about.

The facility, according to Mr. Elishilia Kaaya, the AICC managing director, will cost some $ 12 million (Sh.18billion). This is a joint venture between the centre and the Local Authority Pension Fund (LAPF).

Demolition of the AICC living quarters, which originally belonged to the former EAC staff members, will start anytime this year to pave way for the construction of the shopping mall, the second in Kaloleni after the one linked to investors from Dubai.

With a string of investments flowing into the area, the once prestigious living quarters for the African government servants now under contention appear to have been forgotten, giving in to the crave for the land they stood on.

This is partly evidenced by the tussle over the likely demolition of the houses in question, many of them now old and posing danger to its occupants during heavy rains or earth tremors.

Mr. Estomihi Chang'a, the acting Arusha municipal director, says he was not sure of the occupants of the houses owned by the council. It would not matter whether the tenants were public servants or not.

But the city administrator says the houses would have to be pulled down if the council was to make economic use of the prime land right in the heart of the fast growing city.

Some discussions have been underway between Phils International, a consultancy firm based in Dubai, with the municipal council to pull down the old structures and put up a shopping centre and modern residential flats.

According to him, some of the shareholders or owners of the company yearning to invest in the area are Tanzanians. However, he could not name them or give their addresses.

Other structures to be put up include walk-ways to the adjacent Naura Springs, one of the rivers that cuts through Arusha city from the slopes of Mt. Meru and recreation centres that are familiar with shopping malls.

But the local authority official admitted there was a stiff opposition to the proposed shopping centre which has generated much debate in the town in recent weeks.

He  and other officials have been at pains to explain to people that the project was not bent on discriminating the tenants of the buildings earmarked for demolition.

"Nowhere has it been written or said that the tenants would be thrown out without alternative places to live in. Nobody has said that,”  he said.


He told The Citizen on Sunday that some three to four multi-storeyed flats to be constructed would be reserved for the tenants to be evicted, but   they will have to pay for them.

"These houses belong to the municipal council. We also have a title deed for the land which we now plan to make full use of. These are not individual houses whose owners have to be compensated when there is a government project," he elaborated.

However, Mr. Chang'a,  said they may be forced to bow to some of the demands of tenants who will be forced out because many of them are seeing the project as aimed to discriminate against them.

These may include looking for an alternative land or residences for them or ensuring they got some preferences in occupying the new flats at affordable rent and the like.

He admitted that the project has not sailed well with some local politicians, especially the outspoken Arusha Urban MP (Chadema), Godbless Lema.

According to the municipal official, the legislator has vowed he would not allow the project to go on as long as no alternative accommodation was secured for the 196 families whose members are more than 5,000.Sunday, 29 January 2012 09:05
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