NSSF Starts Work on Shs 14.5 Bn Housing Project in Mbuya

he NSSF Managing Director Richard Byarugaba (R) along with
the Chairman Board of Directors Patrick Byabakama (2nd R) and
contractors during the ground breaking ceremony of the Mbuya housing
project on Wednesday (Photo: Paul Ampurire/ChimpReports)

National Social Security Fund (NSSF) has Wednesday commissioned the construction works for a Shs 14.5 bn housing project in Mbuya, check outside Kampala as part of the Fund’s move to diversify its investments.

The estate will provide accessible first class residential apartments to Ugandans especially amid the growing inadequacy of affordable housing.

It comprises of 40 high end apartments with 3 bedrooms as well as other amenities such as a club house, swimming pool and landscaped gardens.

The NSSF Managing Director Richard Byarugaba who presided over the commission said the project will enable the Fund to continue to diversify its revenue streams thereby minimizing any risks within its asset classes.

“We are keen to launch planed housing projects because we have deliberately chosen to be of the solution to Kampala’s housing deficit problem. NSSF is committed to making prudent investments in the real estate sector and will implement several stalled projects such as the one in Lubowa,” noted Byarugaba.

The project which is expected to be completed in two years comes a month after the Fund started on a mixed development project in Jinja town worth Ushs 3.3 billion

Byarugaba went on to explain; “We expect this project to earn a return of about 20 percent on our investment. By the end of the year NSSF will have invested Shs 578 billion in real estate projects.”

According to him, such an investment presents an opportunity for the social security fund to offer its members reasonable returns on their savings.

NSSF’s Board Chairman Board of Directors Patrick Byabakama in his remarks noted that investment in housing projects will reduce the Fund’s portfolio risk.

In 2015, NSSF announced its plan to venture into real estate in order to fill the existing housing gap as well as support the local developers by boosting their capacity.

The Fund will construct houses and later sell them off to individuals at affordable prices before embarking on new projects.

NSSF’s total assets currently stand at Ushs 6.25 trillion up from Ushs 5.975 trillion in 2015.

As at December 2015, the Fund’s Fixed Income investments stood at 76.9 percent of our total assets, Equity at 15.3 percent and Real estate followed at 7.8 percent.


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