April 14, 2024


Equality opinion

Savings as Security? What the Uganda Retirements Benefits Regulatory Authority (Assignment of Retirements Benefits for Mortgages and Loans Regulations, 2022)

The Uganda Retirements Advantages Regulatory Authority (Assignment of Retirements Gains for Home loans and Financial loans Polices, 2022) that were being passed by Parliament on the 25th February 2022 lastly arrived into force on the 10th May possibly 2022.

The considerably-awaited laws were being passed with the main conversing points remaining the leeway it grants to savers in various strategies to use their accrued added benefits for functions of financing home loans and housing financial loans.


This post will examine what this signifies for Ugandans and shed light-weight on what is demanded of each and every beneficiary in situation of the have to have to take pleasure in their positive aspects.


The Uganda Retirements Benefits Regulatory Authority Act enacted in September 2011 recognized the Uganda Retirements Gains Regulatory Authority. (URBRA).

The key capabilities of the Authority are among the others to control and supervise the institution, administration, and procedure of retirement positive aspects techniques in Uganda, in equally the community and non-public sectors.

The Act in Area 68(2) supplies that a proportion of the gains shall be utilised by a member of a plan to protected a mortgage loan or a financial loan for purchasing a household residence from any institution and on these kinds of terms as might be approved in regulations created below the Act.

The Act, further provides the Minister electricity to make rules usually for giving influence to the provisions of this Act and for its owing administration.

As a result, the Minister of Finance and Financial Advancement in session with the Uganda Retirement Added benefits Regulatory Authority board arrived up with the Uganda Retirements Gains Regulatory Authority (Assignment of Retirements Gains for Mortgages and Loans Rules, 2022) that are meant to operationalize Sections 68(2) (a) and 91(1), (2)(j) of the Act by giving for methods that a member shall follow to use a proportion of his or her added benefits to secure a mortgage loan or a financial loan for obtaining a household dwelling.

Passed into regulation on the 25th working day of February 2022, these Regulations arrived into force on the 10th of May perhaps 2022.

What does this suggest for Ugandans?

Regulation 6 of the Polices is to the impact that a member may enter into an settlement with an establishment to use his or her accrued gains as protection for a home loan or a financial loan for paying for a residential residence.

That these kinds of a member may possibly assign (a) a optimum of 50% of his or her accrued positive aspects beneath the retirement gains plan at the time of the application for the facility or (b) a portion of his or her accrued rewards equal to the market place worth of the residential household, whichever is considerably less.

Even further, a member who, prior to the graduation of these Rules has a mortgage loan or a mortgage for buying a household home, may possibly on application to the trustees in the method prescribed in the plan policies, assign his or her accrued positive aspects to an institution as protection for the home finance loan or loan.

The coming into power of these Rules was a great deal welcomed by a bulk of Ugandans who had been waiting in anticipation. What this progress indicates is that users in strategies who have saved for at the very least 10 decades shall be equipped to implement for and if qualified get 50% of their price savings for functions of securing a home loan or getting a household dwelling.

It is crucial to observe that this regulation is distinct and certain that while building applications of this mother nature, the purposes for which the money is being sought ought to be constrained to both securing a mortgage or a loan for buying a household property.

For that rationale, regulation 6(4) mandates the trustees to evaluate the mortgage loan or a bank loan facility supply for getting a household house, referred to in the application just before possibly granting or rejecting the same.

How does 1 access their personal savings?

The legislation demands that a member shall, upon acquiring a letter of provide for a facility, implement to the trustees to assign a proportion of his or her accrued added benefits as stability for a mortgage or a bank loan for buying a residential residence.

It is essential to observe that prior to building an application for the accrued benefits, the member will confirm by an offer letter that he or she has utilized for a home finance loan or financial loan facility from a economical institution.

On software by a member, the trustees shall within just 7 days from the day of the software, overview the eligibility of these kinds of an applicant member to identify whether he or she fulfills the demands.

Whereafter, the trustees shall both reject or permit the Software.

Though carrying out the evaluation, the trustees shall guarantee the pursuing

that the software submitted is for reasons of enabling a member to use a proportion of his or her accrued advantages as stability and shall not consequence in a reduction of his or her retirement gains

the facility used for does not exceed 50% of the accrued positive aspects of the member

  • the member applying for assignment of his or her accrued positive aspects has executed a penned dedication to spend the facility in accordance with the agreed terms and circumstances of the facility
  • the member is gainfully employed or has adequate profits which can be made use of to pay for the facility
  • the goal of the property finance loan or loan utilized for by the member is entirely for securing a mortgage loan or personal loan facility to purchase a residential dwelling

Following conducting the evaluate, the trustees shall notify the Applicant in creating of their conclusion. If glad that the applicant has fulfilled all the prerequisites of the software, the trustees shall witness the deed of assignment executed concerning the member and the establishment.


These developments abide by the current amendment of the National Social Safety Fund Act that among the other issues paved way for associates to obtain 50 % their cost savings furnished they are over 45 many years of age and have saved with the fund for a bare minimum of 10 decades.

This, if perfectly managed will go even further in aiding Ugandans in increasing their social lives, specially throughout this post-Covid-19 pandemic era.

Horace Mugabi is a lawyer at Kasirye Byaruhanga and Co Advocates