The Ministry of Lands,Housing and Urban Development is considering providing subsidies to the private sector to spur the construction of low-cost housing in both rural and urban areas, in a move aimed at curbing the rapid growth of slums.
The Ugandan Ministry of Lands, Housing, and Urban Development is partnering with shelter Afrique Development Bank(ShafDB) to tackle a national housing deficit that exceeds 2.4 million units. The government plans to leverage this collaboration to subsidize private developers and boost large-scale, affordable housing construction across the country.
Through these agreements, Shelter Afrique provides financial structuring, advisory services, and part-funding for large-scale urban renewal programs and social housing, targeting thousands of quality housing units nationwide
To circumvent high land costs—one of the primary barriers to low-cost housing—the government has identified and secured roughly 260 Hectares (650 acres) across the country through the Uganda Land Commission and private landowners for these developments
Uganda faces a staggering housing deficit of 2.4 million units, a shortfall compounded by rapid urbanization and high population growth. An estimated 60% of the population lives in informal or inadequate housing, with nearly 900,000 of existing homes rated as substandard and requiring replacement or upgrading.
The proposal was revealed by the Minister of State for Lands, Hon. Sam Mayanja, while appearing before the House Committee on Lands on Wednesday, 28 January 2026.
Mayanja who appeared before the Committee with his technical team and officials from the Uganda Land Commission outlined the Ministry’s strategic interventions for addressing Uganda’s housing challenges. He presented the Ministry’s Budget Framework Paper (BFP) for the Financial Year 2026/2027.
Mayanja said the Ministry is proposing the capitalization of the National Housing and Construction Company (NHCC) to the tune of Shs350 billion to strengthen its capacity to provide low-cost housing, particularly in urban and peri-urban areas.
“The Ministry recommends capitalization of the National Housing and Construction Company to support the provision of low-cost housing in urban and peri-urban areas,” Mayanja adding that, “Government should additionally provide concessional guarantees to de-risk housing investment.
NHCC is Uganda’s premier state enterprise and real estate developer, established in 1964. It is co-owned by the Government of Uganda (51%) and Libya (49%). NHCC’s mandate is to increase housing stock, improve living standards, and promote organized home ownership.
He explained that Government intends to pursue public-private partnerships to harness private sector financing and technical expertise in delivering affordable housing. According to the Minister, Shs80 billion will be required to facilitate land acquisition for affordable housing projects on 12 already identified sites across the country.
In addition to construction, the Ministry plans to roll out a mortgage liquidity facility aimed at improving access to housing finance. The facility is expected to offer better interest rates and more favorable terms compared to existing financing mechanisms.
Officials from the Ministry told MPs that the high cost of housing remains a key driver of unplanned settlements, especially in fast-growing urban centres.
“The current housing is very costly and that explains why we have mushrooming slums. If we are not careful, most of our urban areas are turning into slums. We want to support the private sector to come in and invest,” said Mr David Wamai, the Assistant Commissioner for Finance and Planning at the Ministry.
As part of its broader housing strategy, the Ministry plans to partner with Shelter Afrique Development Bank, which provides cheaper and long-term loans dedicated to housing development. Wamai informed the Committee that the Ministry requires Shs250 billion to clear outstanding arrears and subscriptions with the bank, a move that would unlock access to additional housing financing.
However, Members of Parliament raised concerns about regional balance in the Ministry’s plans. The Chairperson of the Committee, Hon. Gyavira Ssemwanga, observed that most of the proposed interventions appeared to be concentrated in the central region.
Committee Vice-Chairperson, Hon. Andrew Oulanyah, urged the Ministry to pay more attention to other parts of the country, particularly northern and eastern Uganda.
“You are speaking mostly about the central region. For instance, in land registration and titling, we have over 10 million hectares of land in the northern and eastern regions. Can we this time move out to other areas?” Oulanyah asked.
Hon. Gyavira further questioned the adequacy of the Shs970 billion allocated for land titling across all regions, noting that the amount appeared insufficient given the vast acreage of untitled land countrywide.
The Committee is expected to make recommendations on the Ministry’s budget proposals as Parliament continues scrutiny of sector plans for the financial year 2026/2027.
In addition to working with Shelter Afrique, the Ministry proposed capitalizing the National Housing and Construction Company (NHCC) to the tune of Shs350 billion to directly drive housing delivery in peri-urban and urban centers.
The partnership is a central part of the Ministry’s strategic plan to curb the rapid growth of slums and informal settlements in urban areas. It complements the institution’s ongoing Value Chain Mapping efforts to scale up the development of decent, affordable housing programs.
