Housing Finance in Uganda

Overview

Uganda has a growing housing finance sector. As the mortgage market does not yet meet the breadth of the population who might afford a mortgage, most households still finance their housing independently, with savings or non-mortgage credit.

The lowest recorded interest rate on a mortgage in Uganda is 22 percent, as of September 2016 and requires at least a 30 percent down payment. There are currently 6 000 mortgages in the country, with the average mortgage size being US$ 30 000. The cheapest newly built house by a developer recorded by CAHF is US$ 30 000, which is for a 120 square metre unit. Cement prices are lower than the continental average, at US$ 9.12 for a 50-kilogram bag.

With an urbanisation rate of 5.36 percent, demand for affordable housing will remain strong, both for rental and purchase. Housing microfinance will play an important role in increasing the supply of housing, and efforts to increase access should be undertaken. Over 70 percent of housing has developed by individual households, using their own savings to undertake construction incrementally. Owner occupancy is estimated at 72.8 percent. With a good macroeconomic environment, sound policy, better data and increased access to affordable credit, an enabled housing market can increasingly provide housing that the average household in Uganda can afford.

Find out more information on the housing finance sector of Uganda, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2016 edition, which has up-to-date profiles for 51 African countries.

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