The government is working with housing developers and financial institutions to introduce affordable mortgage products targeting low-income earners as it seeks to address Uganda’s estimated housing deficit of 2.4 million units.
According to the Lands, Housing and Urban Development Minister, Judith Nabakooba, high mortgage interest rates, currently ranging between 16 and 22 percent, have made home ownership inaccessible to many Ugandans.
She said the government wants housing finance to reflect the income patterns of ordinary workers, including boda boda riders, market vendors, casual labourers and young professionals.
“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.
The minister was speaking at the first Law and Real Estate Conference, a two-day event organised by Global Real Estate at the Mestil Hotel in Kampala from August 3rd to 4th, 2026, under the theme, “Bridging Law and Real Estate for Sustainable Growth.”
Nabakooba said financial institutions and developers should consider flexible repayment models that allow low-income households to make smaller daily or periodic payments.
She noted that some Ugandans can save between UGX 5,000 and UGX 10,000 a day but are excluded from conventional mortgages because they lack formal monthly incomes.
“We need mortgage programmes that accommodate people who can only manage between UGX 5,000 and UGX 10,000 daily. Such arrangements can enable many Ugandans to own decent homes,” she said.
The minister also proposed long-term housing schemes for university graduates, allowing them to acquire homes through affordable installments spread over 20 years or more.
Nabakooba said the government is also fast-tracking the proposed Real Estate Bill, which she expects parliament to pass before the end of the current financial year.
The legislation will introduce minimum professional standards, licensing requirements and stronger regulation of real estate dealers.
“Today someone wakes up and starts selling houses without a licence. Once this Bill becomes law, it will regulate all real estate dealers and professionalise the industry,” she noted.
The minister said the reforms are intended to curb fraud, improve accountability and strengthen consumer protection.
