HOUSING BANK MARKS FIFTY (50) YEARS OF FRUITFUL EXISTENCE

By John V Sserwaniko

Wednesday evening saw hundreds of Housing Finance Bank (HFB) customers converge at Serena hotel where the climaxing event to mark 50^th anniversary (Golden Jubilee) celebration was held. You had young corporates, the politically and economically powerful (including those called old money) joining Ag MD Micheal Mugabi and his boss David Opio Okello (the BoD chairman) to drink, eat and dance the evening away. Prime Minister Ruhakana Rugunda was chief guest and was accompanied by several Ministers who (like him) are long term customers of HFB which remarkably controls 60% of the mortgage market in Uganda. Among them was Chris Baryomunsi (Housing) who politically supervises HFB. Equally present was the Deputy Chief Justice Owiny-Dollo, who is one of the longest bank customers.

WHO SAID WHAT;

The submissions made by different speakers clearly indicated why celebrating 50 years in such a pompous way was justified and well-merited. Speaking in a documentary that was beamed on the large screens inside the dinner hall, several customers spoke of how HFB’s flexible and generous credit terms enabled them to transform their businesses with limited stress. Fountain Publishers and Igongo Recreation facility (cultural center) proprietor James Tumusiime illustrated how HFB credit facilities have in the last 18 years supported expansion of his two businesses. Besides the two businesses, Tumusiime reminisced how he first became a residential property owner in the upscale Kololo because of HFB. “The seller was an Indian based in Canada and this was a very good property but I didn’t have the money. I had some little money and HFB topped it up for me under mortgage terms and that’s how I became a proud house owner in Kololo,” Tumusiime said in the documentary. “My Igongo business had only 20 rooms yet the demand was very high for accommodation in Mbarara. HFB came in handy, we expanded the facilities and the business is what it is today because of HFB my bank.” Kenneth Makanga, a young man running his own consultancy business, disclosed how he became a proud owner of a plush apartment in the Najjera neighborhood (Mercury Plaza) because of HFB. Images of him enjoyed the swanky apartment with his young family beamed as his voice run in the background. Gulu-based businessman Alfred Okwang narrated how he has transformed into a leading tycoon because of HFB’ credit support. For a man who didn’t have much as of 2011 (8 years ago) when he first became the HFB customer, today he owns Gulu School of Nursing, Gulu Institute of Health Sciences and Layibi High School all of which are doing well and topping the competition in Gulu town. Yet that isn’t all he has to show for his relationship with HFB. “I’m increasingly distinguishing myself as a commercial farmer. I’m into maize milling and my plant besides doing my own work, mills maize for other farmers at a fee. I also purchased a tractor and it’s being used on hire by the community.” Another customer, a Hajat, showcased her tile-roofed rental houses all built from scratch using loans from HFB which she conveniently paid back and moved on with life. Platinum Hospital’s Jane Nante equally commended HFB for funding infrastructural expansion on terms that have never brought them any stress. In her narrative, Bernadette Asaba, who has worked with HFB for the last 36 years, brought out the best HR practices that the bank strictly practices resulting into staff retention. The active participation of former employees in the Serena celebrations was further corroboration of the great things Asaba said about HFB’s excellent HR practices. Former top executives like Mr. Nicolas Okwir, Patrick Kabonero and Katamba came and actively participated in the event. No ill feelings whatsoever. Okwir and Kabonero even contributed insightful articles in the Souvenir Magazine reminiscing their days and times at HFB.

MORE TO BE CELEBRATED;

Different speakers reflected on the 1998 crisis when a rumor went around that the bank was getting closed in just hours and there was a run on the bank. Anxious customers rushed to Kampala Road where it then had its only branch and withdrew all the money, nearly collapsing the bank. Standard Chartered Bank, one of HFB’s most celebrated partners, stepped in and normalcy returned with customers flocking back to fatten their accounts. Chief Internal Auditor Dorothy Nkesa Kiyaga (who then was Chief Cashier) remembers it like yesterday and says surviving that stormed proved HFB’s resilience to endure anything. She recalls the nervousness with which she kept running to then MD Nicolas Okwir’s office as hundreds of customers kept in the queues to withdraw their money. Asaba recalls working in Namuwongo which was HFB’s only other branch apart from Kampala road. It has since grown to over 20 branches and 30 ATM locations harnessed by inters witch services creating additional customer convenience. Former MD Patrick Kabonero recalls how proceeds from sell of pool houses greatly boosted HFB’s capital base. But conversion of Housing Finance Company of Uganda into a fully-fledged commercial bank (called HFB) made the greatest difference in the journey of HFB which seeks to be among the industry’s top 4 in the next five years. The new status permitted coming up with many more innovative products which have seen the bank’s market share and profitability steadily grow over the years. In the audience during the dinner were customers (like Elizabeth Galabuzi & Gloria Najjemba) who have banked with HFB since inception in 1967 when it was first incorporated as First Building Society of Uganda (exclusively catering for British civil servants operating in East Africa). Some of the long serving customers and most valued partners the night’s excellent MCs (Crystal Newman and Ben Mwine) recognized included law firm Okello Oryem & Co Advocates, Kim Soon Yang, Standard Chartered Bank, Keith Muhakanizi, Sam Rutega and shareholders-GoU, NSSF and NHCCL. Building on what BoU’s Twinemanzi had said earlier (commending HFB for promoting the local content provisions/BuBU), Rugunda said HFB should be embraced because it’s the only one 100% owned by indigenous Ugandans. Speaking earlier, the Ag MD Micheal Mugabi had braggingly said HFB wasn’t only 100% locally owned but also promoted local content by hiring Ugandans only to serve on its board, top management and staff positions. Master Card Foundation boss Jone Adams revealed why they had chosen to partner with HFB as they go about strengthening the GoU policy to deepen financial inclusion through use of technology to further digitalize financial transactions. This intervention is critical because in Africa, 95% of the population remains excluded-and not part of the formal financial system. The GoU financial inclusion policy had targeted 95% financial inclusion of all Ugandans by 2022, a move Adams says can be expedited once the new payments innovation MCF is promoting is massively embraced. Objective is to diminish fraud and increase customer convenience via online payments.

THE MD SPEAKS;

In his speech, MD Mugabi said limping through the turbulent Amin period is additional proof of HFB’s resilience as a financial institution. Bragging that HFB is not only compliant on BoU regulatory requirements but also on cross-cutting issues like gender sensitivity, Mugabi read out names of Board and top management members clearly indicating the strong presence of females at both levels. In management is Peace Kahuga who is the Ag Executive Director of the bank others being Company Secretary Anna Abejja, CFO Medard Mwesigwa, Dorothy Kiyanga (Chief Auditor), Hope Ekudu (operations) and others. BoD members are Geraldine Ssali, Josephine Mukumbya, Jean Mutabazi, Sarah Walusimbi, Peace Ayebazibwe Kabunga, Anne Abejja, MD Mugabi, Paul Omara, Patrick Ayota, Jim Mugunga, Frank Katusiime and Chairman David Opio Okello. As for the future, Mugabi said HFB would deepen penetration into agricultural financing and as well as Oil & Gas projects.

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