Improved living conditions and quality of life, improved livelihoods of populations living in poverty, ameliorated affordability of housing

Decreased inequalities in access to housing for low and middle income families, reduced growth and expansion of informal areas, increased formal settlements and urban planning development

Reduced communicable and non-communicable diseases connected with living in informal settlements

There is a risk that a mortgage might be difficult to repay, which will strain the budget for low income families.

Alteration of natural environment in greenfield projects (21)

Waste production due to construction.(21) Contamination of water and increased mud and dust due to construction.(22)

Constructing new housing units, especially state-subsidized, can affect the value of land and buildings in the neighbourhood.(28)

Offer quality living conditions to low income communities contributing to more equal and sustainable urban planning.

Land Sector Strategy Plan 2013-2023: This plan determines an operational framework for developing land sector reforms imperative to capture and safeguard Uganda’s land tenure system and land users' rights. It also streamlines and modernizes land delivery, and promotes balanced land and natural resources use.(8)

Uganda National Urban Policy: This policy establishes a framework for solving problems related to rapid urbanization. Those include: fast population growth, high levels of urban poverty, poor waste management, high unemployment, ongoing environmental degradation, and poor urban safety and security.(10)

Uganda National Housing Policy: This policy addresses key developmental challenges including: inadequate housing, the housing backlog due to inappropriate construction; and the increasing population. These factors have increased housing demand and contributed to deteriorated housing conditions.(11)

Uganda National Land Policy: This policy describes the current frameworks around land ownership, establishes goals for efficient and sustainable use of land, provides incentives for appropriate and productive use of land, and establishes a new institutional framework for land ownership.(32)

Financial incentives: Initial allowance and depreciation allowance. Initial allowance – capital deduction of 50% on qualifying plant and machinery. An investor who places depreciable assets in service is eligible for a deduction of 5% on cost of construction straight line method for 20 years.(17)

Fiscal incentives: Double Taxation Agreements (DTA): Investors from countries with active DTAs with Uganda are eligible to withhold tax rates applicable to dividends, interests, management fees and royalties to the amount of 10%, except the United Kingdom, for which the rate is 15%.(17)

Other incentives: The government supports developing affordable housing by placing, emphasizing and/or subsidizing the related infrastructure, such as sewerage, electricity etc.(31)

Although the construction sector is well-regulated and has opportunities for private sector investments, some challenges connected with land tenure remain. However, those are being evaluated by the government and can be expected to be resolved in the near future.(32)

Land Act 1998, Chapter 227 (amended in 2004 and 2010): This Act outlines provisions for the tenure, ownership and management of land, and amends and consolidates the law on tenure, ownership and management of land.(9)

Mortgage Act 2009: This Act provides a framework for creation of mortgages, duties of engaged parties, priority, tacking, consolidation and variation of mortgages, discharge of mortgages and court settlements.(13)

Standard Specifications 2012: These standards regulate architectural, structural and general works, building sanitation and electrical services.(15)

Building Control Regulations Schedules: These schedules specify occupancy classification, design population, parking requirements, load reduction on columns, terrain categories, general classification and design bearing capacities of soil, thickness of non-load bearing walls, etc.(16)

Exim Bank, Mbvoni, National Housing and Construction Company (NHCC), Jomayi Property Consultants, Canaan Sites, Hossana, Heritage Sites, Sema Properties, Zion Construction

Ministry of Lands, Housing and Urban Development, Ministry of Works and Transport, Urban authorities

African Development Bank (AfDB)

CDC, KfW, Habitat for Humanity Uganda, Centre for Affordable Housing Finance in Africa (CAHF), US Agency for International Development (USAID), Financial Sector Deepening Uganda (FSDU), Shelter and Human Settlements Alternatives : Ugandan Human Settlements Network (SSA: UHSNET)

The highest deficit of proper housing is seen around large cities, such as Kampala, where important informal settlements are located (1). The most populated districts in the country are Wakiso and Kampala, with populations of approximately 2 million people and 1.5 million people, respectively (30). The central region (mostly the city of Kampala) comprises 54% of the urban population of Uganda (29).