GIPF assures members homes are safe under pension-backed housing scheme

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The Government Institutions Pension Fund (GIPF) has reassured its members that they will not lose their homes if they are unable to fully repay loans under its new pension-backed housing finance scheme. The assurance follows concerns that the initiative could expose retirees to the risk of property repossession.

GIPF chief executive Martin Inkumbi says the structure of the scheme is designed to protect members’ primary residences while remaining compliant with Namibia’s pension legislation. He explained that in cases where a member defaults, the only consequence would be an adjustment to the pension lump-sum payable at retirement.

Inkumbi stressed that repossession of homes is not part of the scheme, positioning the facility as a housing support mechanism rather than a traditional loan product. The fund says the model balances improved access to housing finance with safeguards to preserve members’ long-term financial security.