The Ministry of Finance has presented the Mortgage Refinance Institutions Bill, 2025 to Parliament, proposing a legal framework to regulate the establishment and operations of mortgage refinance institutions in Uganda.
Minister of State for General Duties, Henry Musasizi, led a team of technical experts from the Ministry of Finance and Bank of Uganda before the Parliamentary Committee on Finance, Planning, and Economic Development on Wednesday.
Musasizi emphasized the bill's importance in addressing the structural weaknesses in Uganda’s mortgage financing system.
“I want to thank you and request you to consider the Mortgage Refinance Institutions Bill, 2025, which will help in solving the problem of loan mismatch where financial institutions use short-term deposits to lend to mortgage borrowers,” he said.
The bill introduces regulations that will govern how mortgage refinance institutions are established and operated. It also outlines the supervisory role of the Bank of Uganda in conducting mortgage refinance business.
Currently, Uganda lacks a specific law to regulate these institutions, which are critical in providing liquidity to banks and microfinance deposit-taking institutions. This liquidity enables them to issue long-term mortgage loans to clients.
Primary mortgage lenders in Uganda typically rely on customer deposits and other short-term borrowing, making it difficult to offer sustainable long-term mortgage products.
The proposed law sets the minimum capital requirement for setting up a mortgage refinance institution at UGX 35 billion.
If enacted, the law is expected to enhance the stability of the mortgage sector and stimulate affordable housing financing across the country.
