The National Housing and Construction Company (NHCC) estimates that at least one quadrillion shillings (UGX 1,000 trillion) is needed to address the country’s housing shortage, currently standing at about 1.8 million units.
As cities grow and more Ugandans look for affordable homes, this housing gap continues to widen.
The NHCC, established by an Act of Parliament in 1964, is responsible for increasing housing availability, revamping the housing sector, and promoting homeownership.
The company aims to create well-organized, livable communities, but the financial requirements for such large-scale projects are overwhelming.
Without significant funding, Uganda may struggle to meet the housing needs of millions of citizens.
According to Eng. Kenneth Kaijuka, the Chief Executive Officer (CEO) of the NHCC, Uganda faces a serious shortage of housing across different categories.
He said the country needs 5 million permanent houses, which can last over 50 years. To build these, Uganda would need about USD150 billion (around UGX 555 trillion).
For semi-permanent houses that can last over 25 years, there is a shortage of 3 million units. The cost to address this would be around USD75 billion (approximately UGX 277.5 trillion).
Additionally, there is a need for 2 million temporary housing units that can last more than 10 years, which would cost USD20 billion (about UGX 74 trillion).
In Kampala alone, the housing shortage is about 300,000 units, requiring UGX 33.4 trillion to meet the demand.
Other cities and towns in Uganda also face a housing deficit of 500,000 units, which will require an investment of about USD15 billion (UGX 55.5 trillion).
Kaijuka encouraged investors to take advantage of the opportunities in the housing sector, even though banks are often hesitant to fund projects outside urban areas.
Abubaker Kiberu, Senior Manager of Operations at the Bank of Africa, highlighted how expensive the construction industry is and urged developers to apply for various financial loans and grants.
He explained that there are options for short- and long-term loans to help developers expand their operations and contribute to reducing Uganda’s housing shortage.
At a recent Construction Symposium held on September 20, 2024, at the Imperial Hotel in Kampala, Gen. Katumba Wamala urged financial institutions to provide much-needed credit facilities to players in the construction sector.
At the event organised by the Uganda Society of Architects (USA), Gen. Katumba Wamala stressed the crucial role of financing, compliance, sustainability, and innovative construction technologies in advancing Uganda’s infrastructure development.
Gen. Katumba stressed that the focus on these key areas is crucial for the growth of Uganda’s built environment.
“As we work to secure our country’s future, our goal is to create a strong construction sector that drives economic growth, meets high standards of quality and compliance, embraces sustainability, and uses cutting-edge technologies,” he said.
He also encouraged sector players to bring creativity, commitment, and teamwork to the table, as these qualities will help enhance Uganda’s infrastructure, speed up development, and build a safer future for all.
The construction industry is a significant contributor to Uganda’s economy, accounting for over 12% of the nation’s gross domestic product (GDP).
Despite inflationary challenges, the sector has continued to grow steadily over the last 20 years.
END
English 