“We believe that this capitalization will not only strengthen the capital base of the bank but will also create enough resources for the bank to give low cost mortgages..."
Mathias Katamba(L) Managing Director Housing Finance Bank and David Bahati, State Minister for Finance appearing before the parliament finance committee on Wednesday November, 2017. Photo by Roderick Ahimbazwe
The Housing Finance has planned to introduce a unique mortgage which will enable civil servants to get cheap finances for constructing their own houses.
According to the plan revealed by the Bank’s Managing Director Mathias Katamba, the bank has been capitalized with an extra sh31b from the National Social Security Fund (NSSF) which owns 50% of the shares.
In the share agreement under which the bank is running, government, which owns 49% of the shares, is expected to supplement NSSF’s contribution with sh30b.
While appearing before the parliament finance committee today, Katamba explained that the money in question is not expected to be drawn from the consolidated fund but is already money the government holds with the bank from sale of pool houses.
The state minister for finance David Bahati said: “We believe that this capitalization will not only strengthen the capital base of the bank but will also create enough resources for the bank to give low cost mortgages for Ugandans to construct their own houses.”
Bahati said since the sh30b government is contributing was generated from selling houses government had built for civil servants, special priority will be given to civil servants in availing low cost mortgages to them.
The Managing Director said the bank had registered success by having its profitability rise to sh18b in 2016 from sh14b profit it had made in 2015.