Lands and Urban Development, Ms Judith Nabakooba has announced government plans to work with key players in the housing and financial sectors to develop affordable mortgage products for low-income earners as part of efforts to reduce Uganda’s estimated housing deficit of 2.4 million units.
Addressing stakeholders in the real estate industry in Kampala,the Minister acknowledged that the current mortgage market remains inaccessible to the majority of Ugandans because of high lending rates ranging between 16 and 22 percent.
‘Government intends to redesign housing finance to cater for ordinary workers, including boda boda riders, market vendors, casual labourers and young professionals, who are currently locked out of home ownership,”Nabakooba stated.
“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,”she stressed..
She encouraged mortgage financing institutions and developers to introduce flexible repayment plans that reflect the earning patterns of low-income households.
According to her, many Ugandans can afford to save between Shs5,000 and Shs10,000 a day but fail to qualify for conventional mortgage products because they lack formal monthly incomes.
“We need mortgage programmes that accommodate people who can only manage between Shs5,000 and Shs10,000 daily. Such arrangements can enable many Ugandans to own decent homes,” she said.
She further proposed long-term housing schemes for fresh university graduates, arguing that many complete their studies only to struggle with rising rental costs before establishing themselves financially.
“Many of our children complete school at about 25 years. Renting is becoming expensive. Why not allow them to own homes while paying affordable instalments over 20 years or even longer?” she empasized.
In addressing current housing shortage,Nabakooba said government is fast-tracking the proposed Real Estate Bill, which she expects Parliament to pass before the end of the current financial year.
She said the legislation will introduce minimum professional standards for real estate practitioners, require licensing of dealers and strengthen regulation of the property industry.
“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 said.
She added that the law is expected to minimise fraud, improve accountability and protect buyers involved in high-value property transactions.
The minister acknowledged that land conflicts, duplicate and overlapping land titles, fraudulent estate management and prolonged court cases continue to undermine confidence in Uganda’s real estate sector however to address the challenge, she said President Museveni directed the Ministry of Lands to migrate the national land registry to blockchain technology to improve the security and authenticity of land records.
She said the digital system is expected to reduce fraud, strengthen land administration and lower the cost of doing business.
Global Real Estate Managing Director Ms Fridaus Nambi said the conference had created a platform for lawyers, developers, financiers and policymakers to discuss reforms needed to improve Uganda’s real estate industry.
“We have many enactments already in place and more amendments coming. These conversations help us understand how we can improve the industry and ensure all stakeholders move together,” Ms Nambi said.
She expressed optimism that recommendations from the conference would contribute to a more transparent, professional and sustainable real estate sector capable of supporting increased investment and expanding access to affordable housing.
