September 22, 2023


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

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The Uganda Retirements Positive aspects Regulatory Authority (Assignment of Retirements Gains for Home loans and Financial loans Polices, 2022) that were being handed by Parliament on the 25th February 2022 ultimately came into power on the 10th Might 2022.

The much-awaited regulations were passed with the principal chatting factors staying the leeway it grants to savers in diverse schemes to use their accrued advantages for needs of funding home loans and housing financial loans.


This posting will examine what this usually means for Ugandans and shed light on what is needed of just about every beneficiary in situation of the need to appreciate their rewards.


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

The main features of the Authority are among some others to control and supervise the institution, management, and procedure of retirement positive aspects schemes in Uganda, in each the general public and non-public sectors.

The Act in Portion 68(2) gives that a proportion of the rewards shall be applied by a member of a plan to protected a mortgage loan or a loan for buying a household property from any institution and on this sort of terms as may well be approved in restrictions made beneath the Act.

The Act, even further presents the Minister electrical power to make rules generally for giving impact to the provisions of this Act and for its owing administration.

Consequently, the Minister of Finance and Economic Growth in consultation with the Uganda Retirement Added benefits Regulatory Authority board came up with the Uganda Retirements Gains Regulatory Authority (Assignment of Retirements Gains for Mortgages and Financial loans Regulations, 2022) that are meant to operationalize Sections 68(2) (a) and 91(1), (2)(j) of the Act by providing for techniques that a member shall adhere to to use a proportion of his or her added benefits to secure a house loan or a mortgage for obtaining a residential dwelling.

Passed into legislation on the 25th day of February 2022, these Laws arrived into power on the 10th of May possibly 2022.

What does this imply for Ugandans?

Regulation 6 of the Laws is to the outcome that a member may perhaps enter into an settlement with an establishment to use his or her accrued positive aspects as safety for a property finance loan or a bank loan for obtaining a residential household.

That these a member may possibly assign (a) a maximum of 50% of his or her accrued benefits beneath the retirement positive aspects plan at the time of the software for the facility or (b) a portion of his or her accrued benefits equal to the industry worth of the household home, whichever is a lot less.

Even more, a member who, prior to the graduation of these Restrictions has a mortgage loan or a mortgage for acquiring a household home, may possibly upon application to the trustees in the method approved in the scheme guidelines, assign his or her accrued advantages to an establishment as protection for the mortgage or personal loan.

The coming into pressure of these Laws was considerably welcomed by a bulk of Ugandans who had been waiting in anticipation. What this growth means is that members in schemes who have saved for at least 10 years shall be equipped to use for and if qualified attain 50% of their discounts for needs of securing a house loan or purchasing a residential property.

It is vital to observe that this regulation is very clear and distinct that when generating applications of this nature, the applications for which the income is remaining sought must be confined to possibly securing a home loan or a bank loan for obtaining a household dwelling.

For that cause, regulation 6(4) mandates the trustees to evaluate the house loan or a financial loan facility give for acquiring a residential property, referred to in the software ahead of either granting or rejecting the exact same.

How does one access their personal savings?

The law needs that a member shall, on acquiring a letter of offer you for a facility, utilize to the trustees to assign a proportion of his or her accrued benefits as security for a mortgage or a loan for acquiring a household residence.

It is essential to notice that prior to creating an application for the accrued gains, the member will show by an supply letter that he or she has utilized for a mortgage or loan facility from a monetary establishment.

On application by a member, the trustees shall within just 7 days from the date of the software, review the eligibility of these kinds of an applicant member to decide regardless of whether he or she fulfills the specifications.

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

Though carrying out the evaluation, the trustees shall assure the subsequent

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

the facility utilized for does not exceed 50% of the accrued added benefits of the member

  • the member implementing for assignment of his or her accrued benefits has executed a composed motivation to pay back the facility in accordance with the agreed phrases and problems of the facility
  • the member is gainfully utilized or has enough earnings which can be utilized to pay for the facility
  • the intent of the mortgage loan or mortgage applied for by the member is solely for securing a mortgage or bank loan facility to obtain a household home

Immediately after conducting the review, the trustees shall notify the Applicant in composing of their choice. If happy that the applicant has achieved all the prerequisites of the application, the trustees shall witness the deed of assignment executed among the member and the establishment.


These developments observe the recent amendment of the Nationwide Social Protection Fund Act that amongst other matters paved way for associates to entry half their savings offered they are earlier mentioned 45 years of age and have saved with the fund for a minimum of 10 several years.

This, if effectively managed will go more in aiding Ugandans in strengthening their social lives, especially in the course of this submit-Covid-19 pandemic era.

Horace Mugabi is a law firm at Kasirye Byaruhanga and Co Advocates


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