By Mulengera Reporters
During their Monday session, Members of Parliament sitting on COSASE appreciatively heard that Housing Finance Bank, headed by Michael Mugabi as MD, had over the years been very supportive of the ongoing growth, transformation, expansion and improvement of work at highly baked clay building materials-maker (Uganda Clays) based at Kajjansi.
The Uganda Clays team was led by Ag MD Jones Muhumuza and Company Secretary Mathias Nalyanya. It’s a public listed company in which NSSF, whose operations COSASE has been inquiring into, has shares. The MPs were inquiring into the inadequately secured loan of Shs25bn which NSSF lent to Uganda Clays.
And as part of their explanation, the Uganda Clays top management admitted the inadequacy and promised to cure the problem as soon as is practicable. It was explained that the NSSF loan was secured with only the four land titles for the company relating to its premises in Kamonkoli-Mbale city because the other higher value land titles for the Kajjansi premises had earlier on been mortgaged to secure another loan that had earlier on been taken out from Housing Finance Bank.
It was explained that the HFB loan had been very helpful in expanding and transforming the company’s operations and gratefully, repayment was on schedule and going on very well. The Uganda Clays top officials further explained that there was a possibility that the HFB loan would be completed at the beginning of 2028 (February) so that the Kajjansi titles are returned by the HFB.
It’s then that those same titles will be added to further secure the Shs25bn loan that was taken out from NSSF. It was explained that the repayment of NSSF loan, at the monthly instalment of Shs100m, begins in October 2026. This is all contained in the comprehensive proposal paper which the management has prepared for approval by the Board at their upcoming meeting.
COSASE members were assured that, at that rate, Uganda Clays will complete the total repayment of the NSSF loan in the year 2031 and thereby making a saving of Shs10bn, which would have been forfeited if the repayment of the same loan was to go on up to 2034.
The management of Uganda Clays appreciated their funders NSSF and HFB making it clear that with their financial support the company’s market share had grown amidst improving productivity of work at Kajjansi and their other production centers. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
