Housing Finance in Uganda


This profile is also available in French here.

To download a pdf version of the full 2019 Uganda country profile, click here.

Uganda is a landlocked country in East-Central Africa, bordering Kenya, Tanzania, Rwanda, South Sudan, and the Democratic Republic of the Congo. The country is predominantly rural, with its capital city, Kampala having over one million inhabitants. Uganda has one of the highest rates of urbanisation in the world, necessitating significant planning and infrastructure investment.

Uganda’s financial sector remained strong in 2019, despite tightened global financial conditions. The Central Bank Rate remaining stable at 10 percent in the period. This stability echoed through interest rates within the commercial banks. The country’s total mortgage portfolio also increased by 10 percent in June 2019, driven by interest rate stability and economic recovery. The cost of borrowing however remains a major constraint to accessing credit in the country, because of a low-level supply of long-term finance, and restrictive default requirements from the regulator.

Uganda has an immense market potential for housing delivery, as indicated by the gap in annual housing supply compared to the established demand. According to the Uganda Bureau of Statistics, Uganda has a deficit of 2.1 million housing units, growing at a rate of 200 000 units a year. It is estimated that by 2030, the country’s housing deficit is expected to reach three million units. The high rates of urbanization also pose significant opportunities for developers, particularly in the affordable housing segment. Additionally, stability in market lending interest rates has encouraged an upsurge in mortgage finance for the past two years and further availability of low-cost finance may increase uptake further.

Information on housing finance is compiled and shared by Uganda’s central bank (Bank of Uganda) under its supervisory oversight function for the banking industry. Additional pricing information on the housing sector is compiled and released quarterly by the Uganda Bureau of Statistics (UBOS). The key challenges in collecting information include high levels of privacy by financial institutions, making it virtually impossible to obtain data on the size of their mortgage book and key housing-related projects financed over the period.

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 2019 edition, which has up-to-date profiles for 55 African countries.

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