finance 22 August 2026 Nile Post
Housing Finance Bank Proposes Shs2tn Fund for Industrial Park Workers' Housing
Housing Finance Bank is advocating for a Shs2 trillion fund to boost mortgage financing options for individuals and communities situated near Uganda's burgeoning industrial parks. This initiative aims to address the growing demand for affordable housing fueled by the nation's industrialization efforts. Source: https://nilepost.co.ug/news/365986/housing-finance-bank-proposes-shs2tn-fund-to-expand-housing-for-industrial-park-workers
Housing Finance Bank (HFB) has put forward a significant proposal to establish a Shs2 trillion fund dedicated to expanding mortgage financing for workers and their surrounding communities in Uganda. This move comes as the country’s focus on industrialization is creating a surge in demand for accessible and affordable housing.
Appearing before Parliament’s Committee on Lands, Housing and Urban Development, HFB’s Managing Director, Michael K. Mugabi, highlighted the bank’s current efforts in providing mortgage solutions to those living and working near industrial hubs such as Namanve, Mbale, and Kapeeka.
Mugabi clarified that HFB’s primary role is to facilitate mortgage financing for homebuyers and developers, rather than engaging in direct construction of rental properties. He stressed the need for increased public awareness regarding the bank’s existing services.
The bank is now seeking to scale up its housing finance operations around industrial parks and other developing industrial zones by securing additional funding. The proposal includes the creation of a dedicated housing fund, with an initial annual allocation of Shs400 billion over five years, potentially reaching up to Shs2 trillion.
This financing is intended to help workers and local communities secure suitable and affordable housing through structured mortgage products. It also aims to incentivize developers to build housing in proximity to these industrial workplaces, aligning with the government’s push for local manufacturing and job creation.
However, Members of Parliament raised concerns about HFB’s reach, particularly for ordinary Ugandans outside major urban centers. Questions were posed regarding the bank’s collaboration with Parliament and MPs to extend mortgage opportunities, especially considering the government’s stake in the institution. Concerns were also voiced about the need for improved public awareness and greater expansion into rural areas.
Source: Nile Post