Government Urged to Repossess Libyan Shares in National Housing to Lift Sanctions

The Ministry of Lands, Housing and Urban Development has asked government to consider repossessing the 49% shares held by the Libyan government in the National Housing and Construction Company, as a way of ending sanctions that are crippling the state housing entity.

Officials from the Ministry, led by State Minister for Housing, Princess Persis Namuganza, made the proposal while appearing before the Parliamentary Committee on Lands to discuss the status of Uganda’s housing sector.

“We are requesting government to consider repossessing the 49% shares held by Libya in National Housing. The continued sanctions are affecting budget allocations, blocking capitalization, and scaring away credible investors willing to partner with us,” Namuganza told the Committee.

The Ministry told legislators that because of the Libyan stake, financial institutions and development partners have been hesitant to fund the company.

“The sanctions are not only affecting budget allocations to National Housing, but they are also scaring away competent and credible investors. No serious investor wants to get into a partnership that is under international restrictions,” a senior Ministry official explained.

In the same meeting, the Ministry decried poor funding to the housing sector. Officials said government needs to inject Shs 3 trillion, with an annual allocation of Shs 500 billion, to enable the construction of over 5,000 housing units every year.

“Housing is a basic need and a driver of jobs. Without adequate funding, we shall continue to have a huge housing deficit. We need Shs 500 billion annually to deliver 5,000 units and address the needs of low and middle-income Ugandans,” Namuganza said.

Minister Namuganza also expressed frustration that the Ministry of Finance ignored her advice and imposed new taxes on construction materials in the Financial Year 2026/2027.

“We advised against new taxes on construction materials, but they were imposed anyway. This is hurting the already struggling housing sector and making houses even more expensive for ordinary Ugandans,” she said.

The Committee also faulted the Uganda Investment Authority for allocating land to investors in Industrial Parks while ignoring land for housing of industrial workers.

“You cannot bring factories without houses for the workers. UIA must reserve land for worker housing in all industrial parks,” a Committee member observed.

In her closing remarks, Minister Namuganza commended the Lands Committee for its working style.

“I want to commend this Committee for not being a harassing Committee. Sanity and integrity is now prevailing at Parliament, and this is helping us to do our work,” Namuganza said.

The Committee directed the Ministry to formally table a Cabinet memo on the repossession of the Libyan shares and to provide a roadmap for increased funding to the housing sector.