By Johannah Nantongo
Housing Finance Bank unveiled a new mortgage financing for workers and communities around Uganda’s growing industrial parks .
This comes as Uganda ’s industrialisation drive increases demand for affordable housing.
Appearing before Parliament’s Committee on Lands, Housing and Urban Development , the bank’s Managing Director, Michael K. Mugabi, told MPs that the institution is already providing mortgage financing to people living and working around industrial hubs, including Namanve, Mbale and Kapeeka.
“The bank is already providing mortgage financing to people living and working around industrial hubs, including Namanve, Mbale and Kapeeka,” Mugabi said.
He explained that the bank’s core mandate is to provide mortgage financing to home buyers and developers rather than directly construct rental housing, saying greater public awareness is needed to help Ugandans understand the services it offers.
The bank is now seeking additional funding to scale up housing finance around industrial parks and other emerging industrial zones across the country.
Under the proposal, Housing Finance Bank is calling for the establishment of a dedicated housing fund of up to Shs2 trillion, with an initial allocation of Shs400 billion annually over five years.
Mugabi said the proposed financing would help workers and surrounding communities access suitable and affordable accommodation through structured mortgage financing while enabling developers to construct housing closer to workplaces.
“The proposed financing would support workers and surrounding communities to access suitable and affordable accommodation through structured mortgage financing, while also enabling developers to construct housing closer to workplaces,” he said.
The proposal comes as Uganda expands industrial parks as part of government efforts to promote local manufacturing, create jobs and stimulate economic activity across the country.
However, MPs on the committee questioned the extent to which Housing Finance Bank reaches ordinary Ugandans, particularly those living outside major urban centres.
Ruhinda South MP Arthur Kazoora questioned why the bank does not work more closely with Parliament and MPs to extend mortgage opportunities to Ugandans, particularly given the government’s stake in the institution.
Kazoora also challenged the bank to improve public awareness of its services, arguing that many Ugandans remain unclear about the type of housing financing it provides.
He further called for greater expansion into rural areas, citing the absence of a Housing Finance Bank branch in his home district of Mitooma.
The concerns have renewed questions about the accessibility of mortgage financing beyond major towns and industrial centres at a time when Uganda’s growing population and industrialisation are driving demand for housing.
The bank’s engagement with Parliament also provided an opportunity to examine its role in Uganda’s housing sector, as well as its ownership and development journey, with the National Social Security Fund and the Government of Uganda among its key shareholders.