Museveni Assents To Housing And Construction Laws

President Yoweri Kaguta Museveni has assented to three laws aimed at tightening construction standards, expanding mortgage financing, and professionalising property valuation. 

The laws were assented to on Thursday, 2026, at State House, Entebbe. The laws come as an attempt to address a-2.4 million housing deficit amid rapid urbanisation. 

At the heart of the reforms is the Building Control (Amendment) Act, 2025, which strengthens penalties for illegal construction and mandates stricter inspections to curb substandard structures.

Uganda’s construction boom has long been marred by safety lapses and frequent building collapses, exposing weak enforcement and widespread informality.  

It is hoped that the law will help address the estimated 900,000 substandard housing units nationwide by enforcing modern building codes and tightening compliance. 

The Mortgage Refinance Institutions Act, 2025, seeks to tackle a deeper structural problem: limited access to long-term housing finance. 

Under the new law, the Bank of Uganda will regulate mortgage refinance institutions to enable them to provide longer-term liquidity to primary lenders. 

By refinancing mortgage portfolios for at least five years, the framework aims to expand credit access and lower borrowing costs. Mortgage lending in Uganda currently accounts for less than 1 percent of GDP — far below regional peers — largely due to high interest rates and short loan tenors. 

“Long-term financing is the key to turning renters into owners,” 

Finance Minister Matia Kasaija said, noting that the reform aligns with broader public finance safeguards. 

Analysts say the move could stimulate private-sector construction and align Uganda with broader continental growth trends under trade frameworks such as the African Continental Free Trade Area, which are expected to boost regional investment flows.

The Valuation Act, 2025, completes the reform package by establishing the Institute of Certified Valuers to regulate property assessors. The new body will standardise valuation practices, license professionals, and curb fraud in a sector long criticised for inconsistencies and unqualified practitioners. 

Officials argue this will enhance investor confidence and reduce disputes in land and property transactions. Government officials describe the trio of laws as a structural overhaul designed to professionalise the housing ecosystem, from land valuation to financing and construction oversight.

Lands Minister Judith Nabakooba has previously described the housing deficit as an “economic and social emergency,” warning that unchecked urban growth risks deepening inequality and informality. However, industry players caution that tighter regulations could also raise compliance costs.

Yasin Kafeero, a real estate dealer, warned that smaller developers — already grappling with high material prices and infrastructure bottlenecks — may struggle with additional bureaucratic requirements. “Tougher regulations could stifle small developers if implementation isn’t balanced,” he said.

While the reforms promise safer buildings and a more robust mortgage system, experts note that the core challenge remains affordability, particularly for low-income earners and rural households. According to census data from the Uganda Bureau of Statistics (UBOS) as of June 2024, Uganda has a population of 45.935 million, growing at an annual rate of 3.4 percent. There are 5.7 million active parents aged 35–49 years — a key demographic in the housing demand and supply chain.