May 22, 2024


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


The Uganda Retirements Rewards Regulatory Authority (Assignment of Retirements Positive aspects for Mortgages and Loans Restrictions, 2022) that were handed by Parliament on the 25th February 2022 ultimately came into force on the 10th May 2022.

The significantly-awaited restrictions have been handed with the major talking factors staying the leeway it grants to savers in different strategies to use their accrued benefits for functions of financing mortgages and housing loans.


This write-up will go over what this signifies for Ugandans and get rid of light-weight on what is needed of every single beneficiary in circumstance of the have to have to enjoy their advantages.


The Uganda Retirements Rewards Regulatory Authority Act enacted in September 2011 founded the Uganda Retirements Added benefits Regulatory Authority. (URBRA).

The primary capabilities of the Authority are amongst others to regulate and supervise the institution, management, and procedure of retirement positive aspects schemes in Uganda, in the two the public and private sectors.

The Act in Section 68(2) offers that a proportion of the rewards shall be used by a member of a scheme to secure a home finance loan or a financial loan for obtaining a household dwelling from any institution and on these types of conditions as may perhaps be recommended in rules made beneath the Act.

The Act, additional provides the Minister power to make polices commonly for providing impact to the provisions of this Act and for its thanks administration.

Consequently, the Minister of Finance and Financial Advancement in session with the Uganda Retirement Benefits Regulatory Authority board came up with the Uganda Retirements Advantages Regulatory Authority (Assignment of Retirements Positive aspects for Mortgages and Loans Laws, 2022) that are meant to operationalize Sections 68(2) (a) and 91(1), (2)(j) of the Act by delivering for methods that a member shall follow to use a proportion of his or her gains to safe a property finance loan or a bank loan for paying for a household household.

Passed into law on the 25th working day of February 2022, these Laws came into pressure on the 10th of May 2022.

What does this necessarily mean for Ugandans?

Regulation 6 of the Laws is to the impact that a member might enter into an arrangement with an institution to use his or her accrued positive aspects as protection for a property finance loan or a financial loan for getting a residential residence.

That these types of a member may assign (a) a utmost of 50% of his or her accrued gains less than the retirement benefits plan at the time of the application for the facility or (b) a portion of his or her accrued benefits equal to the sector worth of the household house, whichever is a lot less.

Even further, a member who, prior to the graduation of these Restrictions has a house loan or a mortgage for buying a residential dwelling, may well on application to the trustees in the manner prescribed in the plan rules, assign his or her accrued rewards to an institution as safety for the mortgage loan or personal loan.

The coming into pressure of these Rules was much welcomed by a greater part of Ugandans who experienced been waiting in anticipation. What this development implies is that members in techniques who have saved for at minimum 10 decades shall be ready to utilize for and if suitable obtain 50% of their price savings for needs of securing a home finance loan or buying a household house.

It is essential to notice that this regulation is apparent and certain that whilst creating applications of this mother nature, the needs for which the money is being sought really should be confined to either securing a house loan or a personal loan for getting a residential household.

For that motive, regulation 6(4) mandates the trustees to review the house loan or a loan facility present for acquiring a household home, referred to in the software prior to either granting or rejecting the exact.

How does one obtain their savings?

The regulation necessitates that a member shall, on acquiring a letter of present for a facility, apply to the trustees to assign a proportion of his or her accrued benefits as protection for a property finance loan or a personal loan for buying a residential home.

It is essential to be aware that prior to generating an software for the accrued positive aspects, the member will demonstrate by an offer letter that he or she has used for a house loan or mortgage facility from a monetary establishment.

On application by a member, the trustees shall in 7 times from the day of the software, review the eligibility of such an applicant member to figure out whether or not he or she meets the demands.

Whereafter, the trustees shall either reject or let the Application.

When carrying out the review, the trustees shall be certain the pursuing

that the software submitted is for uses of enabling a member to use a proportion of his or her accrued rewards as safety and shall not result in a reduction of his or her retirement positive aspects

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

  • the member implementing for assignment of his or her accrued advantages has executed a written motivation to shell out the facility in accordance with the agreed conditions and conditions of the facility
  • the member is gainfully used or has adequate earnings which can be used to fork out for the facility
  • the function of the property finance loan or loan utilized for by the member is exclusively for securing a mortgage or mortgage facility to invest in a household property

Immediately after conducting the assessment, the trustees shall notify the Applicant in producing of their final decision. If happy that the applicant has met all the specifications of the software, the trustees shall witness the deed of assignment executed in between the member and the institution.


These developments comply with the modern modification of the Nationwide Social Protection Fund Act that amid other things paved way for associates to entry 50 percent their savings supplied they are above 45 several years of age and have saved with the fund for a least of 10 yrs.

This, if properly managed will go further in aiding Ugandans in increasing their social lives, particularly in the course of this put up-Covid-19 pandemic period.

Horace Mugabi is a attorney at Kasirye Byaruhanga and Co Advocates


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