Uganda’s Construction Sector Sees Modest Inflation Uptick in April , Driven by Specialised Activities and Civil Works

Uganda’s construction sector recorded a mild rise in inflation, with the annual rate edging up to 0.6% in the 12 months ending April 2025, up from 0.5% in March, according to the latest Construction Input Price Index (CIPI) released by the Uganda Bureau of Statistics (UBOS).

The increase, though modest, reflects changing cost dynamics across various construction categories. The rise was primarily fuelled by specialised construction activities, which posted an annual inflation of 0.3%, slightly up from 0.2% the previous month.

Within this segment, “Building Completion and Finishing” stood out, recording an inflation rate of 0.8%, up from 0.7%, pointing to increased demand or cost adjustments in final-phase construction works.

“While the overall increase in construction inflation remains low, the sector is experiencing notable changes in specific input costs and sub-categories,” said Irene Namugenze Musitwa a senior statistician at UBOS.

“This trend signals the importance of tracking inflation not just at an aggregate level but also across specialised activities that often drive total construction costs.”

She made the remarks while addressing journalists at UBOS Offices in Kampala on 30.May.2025

The civil engineering works category also contributed to the uptick, with inflation rising to 0.6% in April, doubling from 0.3% in March.

This was mainly due to higher costs in road and railway construction, which also registered 0.6% inflation. Meanwhile, building construction costs grew slightly to 1.0%, from 0.9% in March, with residential and non-residential buildings sharing the increase evenly.

In terms of monthly inflation, construction input prices remained stable at 0.2%, the same rate recorded in March. This consistency was supported by a continued 0.2% increase in the building construction input index, suggesting a steady rise in short-term costs.

The report also highlighted mixed price trends among construction materials, indicating a dynamic input market:

Price Increases:

Sand prices rose by 0.8% in April, up from just 0.1% in March, likely due to higher transportation or extraction costs.

Aggregate, hardcore, and crushed stone prices climbed 0.4%, reversing a 0.1% decline seen in the previous month.

High tensile steel bars rebounded with a 0.2% rise after dropping 0.5% in March, reflecting a partial recovery in global steel prices or local demand increases.

Price Declines:

Lime prices fell by 0.5%, in contrast to a 1.3% increase in March.

Eucalyptus props, commonly used in scaffolding, declined by 1.1%, reversing the 1.3% rise from the previous month.

“This back-and-forth in material prices mirrors broader trends in construction inputs, some of which are tied to seasonal demand, fuel prices, and global supply chain dynamics,” Musitwa added.

Looking ahead, analysts suggest that while Uganda’s construction sector inflation remains relatively controlled continued monitoring of input costs especially materials like steel, sand, and aggregate is crucial.

These materials form the backbone of both private and public infrastructure projects and are sensitive to both domestic policy and international market fluctuations.

The data provides a useful indicator for developers, contractors, and policymakers as they plan budgets and adjust project timelines. Given Uganda’s continued investment in infrastructure and urban expansion, any sustained price shifts in key construction inputs could have broader economic implications.