NSSF avails Shs40b to fill housing deficit

Housing Finance managing director Mathias Katamba, NSSF’s MD Richard Byarugaba, and Umeme’s deputy managing director Sam Zimbe address journalists at Housing Finance offices in Kololo on Tuesday. PHOTO BY STEPHEN WANDERA

Kampala- National Social Security Fund (NSSF) has availed Shs40 billion to construction industry players seeking to develop affordable residential estates (apartments) across the country.

Nearly Shs450 billion has thus far been invested in real estate by the Fund.

Speaking on Tuesday at a news conference in Kampala where the Housing Finance Bank announced partnership with NSSF, National Housing, Umeme and Shelter Afrique in hosting the first-ever Uganda Housing Finance Conference, which began on Tuesday, the NSSF managing director, Mr Richard Byarugaba, said investment in real estate is an area the Fund considers important.

It is on the basis of that that he unveiled a plan through which the Fund will provide Shs40 billion to benefit local real estate developers in order to make housing more affordable.

He said: “The move will provide a solution to the demand and supply questions facing the housing and real estate development in Uganda. It will help build the capacity of the local developers. It will help standardise housing development in Uganda.”

He said with the funds, developers will have an agreement to develop an agreed number of units with specific standards. NSSF will purchase the developed units and avail the same to Ugandans as Housing Finance Bank provide the mortgages that the borrowers may need.

Meanwhile, according to the joint press statement, the conference will bring together stakeholders and key players along the housing value chain both in the public and private sector to have a national focus group discussion on increasing access to affordable housing finance.

The conference theme “Improving access to housing finance” is derived from the fact that less than 2 per cent of Uganda’s population has access to mortgage financing and as a result most Ugandans cannot access decent and affordable housing.
The managing director, Housing Finance Bank, Mr Mathias Katamba, said: “We believe home ownership is a key component of social economic transformation.”

Mr Parity Twinomujuni, the Ag. CEO NHCC, said once the cost of water, power and finance is affordable the cost of owning a house can fall by 60 per cent.

THE FUND’S PLANS
Mr Twinomujuni disclosed that in October 2015, NHCC shall launch an affordable housing estate in the country at Bukerere (Jubilee City) that will comprise more than 5,000 units.

So far joint Venture plans for middle income apartments at Luzira (350 units), Lubowa (990) and Mukono Industrial Park are being concluded. These projects shall be launched in early 2016.