Housing Finance Bank Expands Mortgages for Industrial Park Workers

Addressing MPs: Housing Finance Bank Managing Director Michael K. Mugabi (center) leads a delegation of senior bank officials presenting a strategic housing proposal to Parliament’s Committee on Lands at Parliament

Housing Finance Bank is expanding mortgage financing to people living and working around Uganda’s industrial parks, Managing Director Michael K. Mugabi has told Parliament.

Appearing before the Parliamentary Committee on Lands, Mugabi said the bank has started providing mortgage financing in areas around industrial parks, including Namanve, Mbale, and Kapeeka, as demand for housing grows alongside industrial development.

He explained that Housing Finance Bank’s primary role is to provide mortgage loans rather than construct houses for rental, a distinction he noted is sometimes misunderstood by the public.

Mugabi revealed that the bank is actively seeking additional funding to support housing around industrial parks and intends to extend the initiative to other industrial zones across the country. As part of these efforts, the bank proposed the allocation of a dedicated housing fund—suggesting a target of up to UGX 2 trillion, starting with an initial resource allocation of UGX 400 billion per year over the next five years—to help bridge the growing housing gap.

He emphasized that the initiative is specifically aimed at helping workers and residents in surrounding communities access suitable and affordable accommodation through structured mortgage financing.

During the engagement, the bank’s presentation also covered its ownership structure, key shareholders—including the National Social Security Fund (NSSF) and the Government of Uganda—and its overall development journey.

The engagement comes as Uganda continues to aggressively develop industrial parks to promote local manufacturing, create employment opportunities, and stimulate economic activity nationwide. With a rising number of workers and businesses settling around these industrial hubs, access to housing finance remains a critical pillar in supporting the sustainable growth of the country’s industrial centers.