Housing Finance Bank: Bridging the Gap Between Affordability and Sustainability
World Business Journal talks to Michael K. Mugabi, Managing Director of Housing Finance Bank, about the impact of incremental housing loans on underserved communities, the objective of aligning with global accountability standards through the SSCI certification, and the focus on digital transformation through a new strategy and Core Banking System.
What recent progress has been made in achieving the objectives of the Sustainability Standards & Certification Initiative (SSCI)?
The SSCI journey consists of 8 modules leading to certification, and we have reached level 3, aiming to complete the certification by Q4 2025.
In our strategic reassessment, we have set 3 core objectives: to enhance financial inclusion, to support entrepreneurs with sustainable business initiatives, and to innovate in housing through eco-friendly materials, renewable energy, and improved water access.
We have secured €50M in funding, which includes €25M from the European Investment Bank and an equal amount from us. This investment is dedicated to empowering women and supporting SMEs in advancing sustainable enterprise.
What impact has the Incremental Housing Loan had since its launch in 2022, and how many beneficiaries have accessed it?
The Incremental Housing Loan has provided tangible benefits to nearly 6,000 customers, particularly those in lower-income segments, including boda-boda riders.
To date, this initiative has facilitated housing loans amounting to nearly UGX 40B, enabling beneficiaries to purchase homes or expand existing structures—all without the need for traditional collateralized lending.
One of the key enablers of this success has been alternative borrowing mechanisms. While only 20% of Uganda’s landowners possess formal land titles, community organizations and associations have played a pivotal role in securing access to financing.
Beyond individual homeownership, this initiative has stimulated the housing construction ecosystem—driving demand for construction materials, strengthening local supply chains, and supporting skilled labor markets.
To scale the impact further, we are expanding our reach through strategic partnerships and the establishment of a dedicated microfinance department, ensuring that affordable housing remains within reach for all Ugandans, regardless of income level.
What digital strategy initiatives do you have in place?
We are focusing on digital transformation in the housing sector, using a new digital strategy and Core Banking System to enhance partnerships with FinTech’s and support balance sheet growth. Our aim is to improve customer experience and satisfaction by ensuring a seamless, convenient experience at every touchpoint.
We are developing an omni-channel platform for seamless transactions and connectivity, which is vital for fostering partnerships and inclusion. This approach, driven by technology, informs our strategy to expand outreach efficiently and cost-effectively. We have also strengthened our monitoring systems to address rising fraud concerns to safeguard customer deposits.
