Minister Musasizi Presents Mortgage Refinance Institutions Bill, 2025 to Parliament
Kampala, Uganda – August 7, 2025 – The Minister of State for General Duties, Hon. Henry Musasizi, today appeared before the Parliamentary Committee on Finance, Planning, and Economic Development to present the Mortgage Refinance Institutions Bill, 2025. He was accompanied by a technical team from the Bank of Uganda and the Ministry of Finance, Planning and Economic Development.
The proposed legislation seeks to establish a legal framework for the regulation and oversight of mortgage refinance institutions in Uganda, a sector that is currently unregulated.
While addressing the committee, Hon. Musasizi highlighted the importance of the Bill in addressing the problem of loan maturity mismatch—a challenge arising when financial institutions use short-term deposits to issue long-term mortgage loans.
“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,” said Musasizi.
Under the new Bill, the Central Bank will be granted powers to supervise and regulate mortgage refinance institutions. It also prescribes a minimum capital requirement of UGX 35 billion for the establishment of such institutions.
Mortgage refinance institutions are expected to play a critical role in deepening the mortgage market by providing liquidity to primary mortgage lenders, including commercial banks and microfinance deposit-taking institutions. This, in turn, will enable these institutions to offer more affordable and long-term mortgage products to Ugandans.
Currently, lenders primarily rely on customer deposits and short-term borrowing to finance mortgages, a practice experts say is unsustainable and risky for long-term lending.
The committee is expected to review the Bill in detail and provide recommendations to Parliament ahead of its anticipated debate.
