Pension funds face housing loan freeze under FIMA …RFS halts processing of unsecured housing loans …GIPF says members’ pension itself serves as security …uncertainty looms over NAMFISA exemption

Renthia Kaimbi

The Financial Institutions and Markets Act (FIMA), designed to protect retirement savings, may be unintentionally shutting out thousands of ordinary Namibians from accessing affordable housing finance through their pension funds.

However, the Government Institutions Pension Fund (GIPF) has moved to assure its members that its housing loan schemes remain fully operational and unaffected by the new restrictions.

Speaking to the Windhoek Observer, Vincent Shimutwikeni, a retirement funds author and pension industry professional, raised concerns that Section 282(2) of FIMA, which came into effect on 1 May 2026, imposes a first mortgage bond requirement that could render housing loans inaccessible to many members who previously qualified under the repealed Pension Funds Act No 24 of 1956.

The requirement, which was emphasised in a circular issued by the Retirement Fund Service (RFS) on 10 July 2026 and seen by the Windhoek Observer, mandates that any direct housing loan granted by a retirement fund must be secured by a first mortgage bond registered over the relevant immovable property.

The only exception is where a fund obtains an exemption from the Namibia Financial Institutions Supervisory Authority (NAMFISA) under Section 282(3).