Uganda: Museveni Enacts Major Housing and Construction Reforms

President Museveni has signed into law three key pieces of legislation aimed at strengthening regulatory oversight in Uganda's construction, housing finance, and valuation sectors.

The reforms are expected to enhance safety standards, expand mortgage financing, and boost investor confidence in the real estate market.

The President assented to the Building Control (Amendment) Act, 2025, the Mortgage Refinance Institutions Act, 2025, and the Valuation Act, 2025 at State House Entebbe, marking a significant policy shift in the governance of Uganda's rapidly growing construction and real estate industry.

The construction sector contributes an estimated 12-13 percent to Uganda's GDP and has expanded rapidly due to urbanisation, infrastructure development, and private investment.

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However, this growth has revealed regulatory gaps, particularly in enforcing building standards and professional compliance.

The Building Control (Amendment) Act, 2025 introduces stricter penalties for illegal construction and non-compliance with approved building plans and structural standards.

The reforms aim to reduce unsafe structures, prevent building collapses, protect lives and property, and ensure accountability among developers, contractors, and supervising authorities.

With urban populations growing at over 5 percent annually in major cities, stronger enforcement is expected to support orderly urban expansion.

The Mortgage Refinance Institutions Act, 2025 establishes a formal regulatory framework for mortgage refinance institutions under the supervision of the Bank of Uganda.

This law empowers the central bank to license and regulate institutions that provide long-term liquidity to primary mortgage lenders such as commercial banks and housing finance companies.

Uganda's mortgage market remains underdeveloped, representing less than 1 percent of GDP, with high borrowing costs limiting access to home ownership.

By creating a refinance mechanism, the government aims to lower interest rates, extend mortgage tenures, and mobilise long-term capital from institutional investors.

Analysts say the framework could unlock billions of shillings in financing for residential and commercial real estate projects.

The Valuation Act, 2025 establishes the Institute of Certified Valuers, a statutory body responsible for regulating professional standards, registration, licensing, and discipline within the valuation profession.

Accurate and credible property valuation is essential for mortgage lending, infrastructure financing, land acquisition, and compensation processes.

The professionalisation of valuation is expected to enhance transparency in property transactions, reduce disputes, and align Uganda's practices with international standards, strengthening confidence among lenders, investors, and developers.

Together, the three laws are expected to streamline construction oversight, deepen housing finance markets, and formalise valuation services.

With a housing deficit running into millions of units and rising demand for affordable urban housing, these reforms signal government's commitment to a safer, more structured, and investment-ready property market capable of supporting Uganda's long-term economic transformation.