Government is considering providing subsidies to the private sector to stimulate the construction of low-cost housing in both rural and urban areas, as part of efforts to curb the rapid growth of slums across the country.
The proposal was revealed by the Minister of State for Lands, Hon. Sam Mayanja, while appearing before the House Committee on Lands on Wednesday, 28 January 2026. The Minister, accompanied by his technical team and officials from the Uganda Land Commission, was presenting the Ministry’s Budget Framework Paper (BFP) for the Financial Year 2026/2027.
Mayanja told the Committee that the Ministry is proposing the capitalization of the National Housing and Construction Company (NHCC) to the tune of Shs350 billion to enhance its capacity to deliver affordable housing, particularly in urban and peri-urban areas.
“The Ministry recommends capitalization of the National Housing and Construction Company to support the provision of low-cost housing in urban and peri-urban areas,” Mayanja said, adding that government should also provide concessional guarantees to de-risk housing investments.
He explained that government plans to pursue public-private partnerships in order to leverage private sector financing and technical expertise in the delivery of affordable housing. According to the Minister, an estimated Shs80 billion will be required to facilitate land acquisition for affordable housing projects on 12 already identified sites across the country.
In a bid to improve access to housing finance, the Ministry also plans to roll out a mortgage liquidity facility that will offer better interest rates and more favourable terms compared to existing financing options.
Officials from the Ministry informed Members of Parliament that the high cost of housing remains a major driver of unplanned settlements, particularly in rapidly growing urban centres.
“The current housing is very costly and that explains why we have mushrooming slums. If we are not careful, most of our urban areas are turning into slums. We want to support the private sector to come in and invest,” said Mr David Wamai, the Assistant Commissioner for Finance and Planning at the Ministry.
As part of the broader housing strategy, the Ministry also plans to partner with Shelter Afrique Development Bank, which provides affordable, long-term loans dedicated to housing development.
Wamai told the Committee that the Ministry requires Shs250 billion to clear outstanding arrears and subscriptions with the bank, a move expected to unlock additional housing financing.
However, Members of Parliament raised concerns over regional balance in the proposed interventions. The Chairperson of the Committee, Hon. Gyavira Ssemwanga, noted that most of the initiatives appeared to be concentrated in the central region.
Committee Vice-Chairperson, Hon. Andrew Oulanyah, urged the Ministry to give more attention to other regions, particularly northern and eastern Uganda.
“You are speaking mostly about the central region. For instance, in land registration and titling, we have over 10 million hectares of land in the northern and eastern regions. Can we this time move out to other areas?” Oulanyah asked.
Hon. Ssemwanga further questioned whether the Shs970 billion allocated for land titling nationwide would be sufficient, given the vast acreage of untitled land across the country.
The Committee is expected to make recommendations on the Ministry’s budget proposals as Parliament continues scrutiny of sector plans for the Financial Year 2026/2027.
