Housing Finance Bank Proposes Shs2tn Fund to Expand Housing for Industrial Park Workers

What the report says

Housing Finance Bank is seeking parliamentary support for a proposed Shs2 trillion housing fund aimed at widening mortgage access for workers and nearby communities around Uganda’s industrial parks. The proposal was presented by Managing Director Michael K. Mugabi during an appearance before Parliament’s Committee on Lands, Housing and Urban Development, according to Nile Post.

Mugabi said the bank is already offering mortgage financing in and around industrial hubs such as Namanve, Mbale and Kapeeka. He explained that the lender’s role is to finance homebuyers and developers rather than directly build rental housing, and said more public awareness is needed to help Ugandans understand the services available.

Under the plan, the bank is calling for a dedicated housing fund with an initial allocation of Shs400 billion each year over five years. The goal is to support affordable accommodation near workplaces while also helping developers build housing closer to industrial zones as Uganda continues expanding its industrial park network.

MPs on the committee raised concerns about how far the bank reaches ordinary Ugandans, especially outside major towns. Ruhinda South MP Arthur Kazoora questioned the bank’s rural presence and urged better outreach, including closer engagement with Parliament. The discussion highlights broader challenges around access to mortgage finance in a country where industrialisation and population growth are increasing demand for housing.