UGANDA Kampala | Real Muloodi News | Housing Finance Bank has signed a Memorandum of Understanding with Habitat for Humanity and Buganda Kingdom to construct two turnkey housing units for vulnerable families under the “decent living campaign” initiative.
The Managing Director of Housing Finance Bank, Mr Michael Mugabi, handed over a cheque worth UShs 40M to Habitat for Humanity Uganda. The money is for the construction of two houses for two underprivileged families in Kalagi and Kyaggwe townships.
“In line with our mandate, as Housing Finance Bank is to enable homeownership and financial independence across all walks of life. I am excited about performing two important tasks; first is to sign our pledge and commitment to work with Habitat for Humanity and Buganda kingdom for the foreseeable future to build turnkey projects for vulnerable families in our communities; and second, to hand over a cheque for the first two houses to be built this year,” Mugabi, said.
“As the only Tier-1 commercial bank that is fully owned by Ugandans, one of our key social responsibility pillars, is to build a better society, as we continue to care about people. This aspiration is also in line with the prescriptions of the Sustainable Development Goals underlined under SDG 11, which looks at striving to provide access to decent housing for the truly marginalised and vulnerable in our society,” Mr Mugabi added.
Housing Finance Bank’s partnership with Habitat for Humanity and the kingdom of Buganda started in 2018 under the “Decent Living Campaign” organisation. The organisation will construct houses for vulnerable families across Uganda, with the first two Buganda and Teso sub-regions.
The National Director of Habitat for Humanity Uganda chapter, Robert Otim, said their target in this campaign is to impact over 60,000 Ugandans in the next five years. They hope to construct 10,000 low-cost houses, adding to the 40,000 already constructed that have affected the lives of over 230,000 Ugandans positively.
According to Otim, the housing deficit in Uganda is because of many factors besides the population explosion and high urbanisation rate.
Otim cited the challenges faced by real estate developers when accessing construction materials, among others.
Mugabi rallied the public to take advantage of the mortgage financing solutions that Housing Finance Bank offers. The bank offers incremental housing loans that low-income earners can access to buy a plot, build incrementally, or furnish their homes, which stretches between 500,000 to 50 million shillings.
The bank recognises many Ugandans lie within the low to middle-income segment. Mugabi says the loan is affordable to everyone. The minimal requirement is the ability to earn an income of at least UGX200,000 per month.
When asked about the cause of the 2.4 million housing deficit in Uganda, Mugabi said the deficit is about demand and supply.
“Uganda has one of the highest population growth rates on the continent; we have one of the highest urbanisation rates (5%). So the deficit is about demand and supply, while there is that increasing urbanisation, high population growth rate we still don’t have enough houses coming on to the market,” Mugabi said.
Mugabi also added that to bridge the real estate sector gap, the Housing Finance Bank has partnered with developers in the housing sector to increase the supply of affordable houses to the population.
Ms Peace Kabunga, the Bank’s Executive Director, noted that different housing solutions are customised to cater for Ugandans based here and even those abroad. The offers by the bank range from buying land or incomplete houses to purchasing multiple units.
Over 50 years, Housing Finance Bank has continued to provide viable solutions to Ugandans for homeownership.
Patrick Luwaga Mugumbbule, a Buganda kingdom official, thanked the two partners for working with the Buganda kingdom in such a noble cause. Mugumbule further added that the gesture would go a long way in providing affordable housing for Buganda vulnerable.
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