Uganda is planning to partner with housing and financial institutions to create affordable mortgage products for low-income earners, aiming to address a national housing deficit estimated at 2.4 million units.
Speaking at the Law and Real Estate Conference in Kampala, Minister of Lands, Housing and Urban Development Judith Nabakooba stated that current commercial mortgage rates—ranging between 16 and 22 percent—keep homeownership out of reach for most citizens.
“The housing mortgages available today are affordable for senior government officials and people with established businesses. We now want to plan for low-income earners like boda boda riders, market vendors and those starting from scratch,” Nabakooba said.
Daily payment structures
To expand access, the government is urging financial institutions to design repayment plans tailored to informal workers who do not earn a monthly salary but can save smaller amounts daily.
“We need mortgage programmes that accommodate people who can only manage between 5,000 and 10,000 Ugandan shillings ($1.35 to $2.70) daily. Such arrangements can enable many Ugandans to own decent homes,” Nabakooba noted, adding that long-term financing over 20 years or more could also help young graduates transition into homeownership.
Uganda’s housing shortage has widened significantly in recent years, driven by rapid urbanization, population growth, and high construction costs.
Regulatory shifts and blockchain tech
To address industry fragmentation and fraud, Nabakooba announced that the government is fast-tracking the Real Estate Bill, expected to pass before the end of the current financial year. The law will require the licensing of property dealers and establish official standards for practitioners.
In response to persistent land disputes and duplicate titling, President Yoweri Museveni directed the lands ministry to transition the national land registry to blockchain technology. The move is intended to secure land records, eliminate fraudulent transactions, and lower business costs across the property sector.
Global Real Estate Managing Director Fridaus Nambi welcomed the government’s policy focus, noting that collaboration between developers, lawyers, and financial institutions remains crucial for sustainable sector growth.
