Uganda’s government has announced a new plan to make home ownership possible for millions of low-income earners by introducing affordable mortgage products tailored to their financial abilities. The initiative aims to reduce the country’s growing housing deficit, which currently stands at an estimated 2.4 million housing units, while giving ordinary Ugandans a better chance of owning decent homes.
The Minister of Lands, Housing and Urban Development, Judith Nabakooba, said the current mortgage system only benefits wealthy individuals, senior government officials and people with established businesses because interest rates remain too high, ranging between 16 and 22 percent. She said many hardworking Ugandans, including boda boda riders, market vendors, casual labourers and young professionals, are unable to qualify for existing mortgage products despite having the ability to make regular payments.
Speaking during the first Law and Real Estate Conference organised by Global Real Estate at Mestil Hotel in Kampala, Nabakooba said the government is working with financial institutions and housing developers to design mortgage schemes that match the income patterns of low-income earners. She explained that many Ugandans earn money daily rather than monthly, making it difficult for them to access traditional housing loans.
The minister proposed flexible repayment plans that would allow people to pay small daily amounts instead of large monthly instalments. According to her, many Ugandans can comfortably save between Shs5,000 and Shs10,000 every day, and such savings could be turned into affordable mortgage payments that would eventually enable them to own homes.
Nabakooba also called for long-term housing programmes targeting fresh university graduates. She said many young people complete their studies at around 25 years of age but spend many years struggling to pay expensive rent before they are financially stable. She suggested that affordable housing schemes with repayment periods of 20 years or more would help graduates build wealth early through home ownership instead of remaining lifelong tenants.
She noted that Uganda’s housing shortage continues to grow because of rapid urbanisation, a fast-growing population and increasing construction costs, making it difficult for many families to afford decent housing. She said affordable housing finance will play a major role in addressing this challenge.
Beyond housing finance, the minister revealed that the government is fast-tracking the proposed Real Estate Bill, which is expected to be passed by Parliament before the end of the current financial year. She said the law will require real estate dealers to be licensed, introduce professional standards in the industry and strengthen regulation of property transactions.
According to Nabakooba, the new law will help eliminate unqualified property dealers, reduce fraud and improve accountability within Uganda’s real estate sector. She said this will provide greater protection to buyers and investors while promoting professionalism across the industry.
The minister also highlighted land fraud as one of the biggest obstacles to growth in the property sector. She said issues such as duplicate land titles, fraudulent estate management and lengthy court cases continue to discourage investment. To tackle these challenges, President Yoweri Museveni has directed the Ministry of Lands to migrate Uganda’s land registry to blockchain technology. The new digital system is expected to improve the security of land records, reduce fraud and make land transactions more transparent.
Nabakooba added that existing laws, including the Condominium Property Act, Succession Act, Landlord and Tenant Act, Building Control Act and Valuation Act, have already strengthened regulation in the sector. She particularly praised the Condominium Property Act for making apartment ownership easier by allowing individuals to own separate housing units while sharing common facilities.
Global Real Estate Managing Director Fridaus Nambi said the conference brought together lawyers, developers, financiers and policymakers to discuss practical reforms needed to strengthen Uganda’s real estate industry. She expressed confidence that the recommendations from the conference would help build a more transparent, professional and sustainable property sector while expanding access to affordable housing for more Ugandans.
