The Mortgage Refinance Institutions Bill, 2025, is under intense analysis. The Uganda Law Society (ULS) presented its stance before the Parliamentary Committee on Finance, Planning and Economic Development.
But while the Bill promises to lower mortgage interest rates and make housing more affordable, ULS isn’t buying the hype at least, not entirely.
The Bill proposes the creation of a mortgage refinancing company aimed at offering loans at a fixed interest rate lower than the current market rates.
In theory, this could make homeownership accessible to more Ugandans a demographic increasingly priced out of the market.
According to the ULS Rule of Law Department, led by Ms. Afra Apio, Rule of Law Officer Mr. Robert Jurua, and Advocate Louis Nkizito, the Bill may be doing more harm than good.
The team argues that this legislative move constitutes a regulatory overreach potentially roasting the growth of Uganda’s financial sector rather than supporting it.
“We need to think long-term,” Ms. Apio asserted during the hearing. “Quick fixes often lead to bigger problems down the line. What we need is a dedicated Financial Sector Conduct Authority to oversee consumer protection and market prices.”
ULS’s concerns are not unfounded. Uganda’s financial sector has been struggling under the weight of high lending rates and a limited pool of affordable mortgage options.
By introducing a mortgage refinance company without addressing the root causes of these issues, ULS fears the Bill could backfire.
“Creating another institution isn’t the solution, regulating the existing financial landscape is better,” argued Mr. Jurua.
Opposition argue that this Bill is less about solving the housing crisis and more about government overreach in the financial sector.
With housing demand skyrocketing and inflation biting hard, controlling interest rates may look good on paper but could spell disaster for banks, lenders and ultimately consumers.
Proponents of the Bill insist it offers a lifeline to Ugandans who have been priced out of homeownership.
“How long will we keep saying the financial sector needs fixing while people sleep in substandard housing?” one MP questioned during the session.
But skeptics maintain that affordable loans without robust financial oversight could lead to another financial crisis.
“Lower interest rates are meaningless if people can’t pay back the loans,” Mr. Nkizito warned.
The Parliamentary Committee on Finance, Planning and Economic Development is set to review ULS’s recommendations.
