Construction laws assented to by President Museveni signal structural shift for Uganda’s urban economy
The signing of the Building Control (Amendment) Act, 2025, the Mortgage Refinance Institutions Act, 2025, and the Valuation Act, 2025 signals a coordinated effort to address long-standing weaknesses in Uganda’s construction and housing ecosystem.
When President Yoweri Kaguta Museveni assented to three major pieces of legislation at State House Entebbe on 19th February 2026, the move marked more than a routine legal milestone.
The signing of the Building Control (Amendment) Act, 2025, the Mortgage Refinance Institutions Act, 2025, and the Valuation Act, 2025 signals a coordinated effort to address long-standing weaknesses in Uganda’s construction and housing ecosystem.
At a time when urbanisation is accelerating and demand for safe, affordable housing continues to rise, the new laws aim to strengthen regulation, expand access to finance, and professionalise property markets; three pillars critical to sustainable economic growth.
Tackling Unsafe Construction and Informality
Uganda’s rapidly expanding urban centres have witnessed significant construction activity over the past decade. However, this growth has at times been undermined by non-compliance with approved building plans, substandard materials, and weak enforcement mechanisms.
The amended Building Control Act introduces tougher penalties for illegal construction and non-compliance with approved standards. The intention is clear: shift the sector from reactive enforcement to preventive compliance.
Stronger oversight under the amended law is expected to reinforce discipline across the construction sector by ensuring that approved building standards are strictly followed.
This will improve structural safety and significantly reduce the risk of building collapses, which have previously undermined public confidence.
Enhanced supervision also protects investors and homeowners from costly defects and reconstruction expenses arising from substandard work.
By compelling compliance with professional engineering and architectural standards, the law promotes higher-quality workmanship and technical integrity in project execution.
At the same time, clearer enforcement mechanisms enhance accountability among developers and contractors, fostering a more responsible and transparent construction environment.
For the broader economy, the implications are substantial. Safer buildings mean lower insurance risks, more reliable asset values, and reduced financial losses, all of which stabilize the real estate market and improve confidence among lenders and investors.
Unlocking Long-Term Housing Finance
Perhaps the most structurally transformative reform lies in the Mortgage Refinance Institutions Act, 2025. The law empowers the Bank of Uganda to regulate mortgage refinance institutions, creating a clearer framework for long-term housing finance.
Uganda’s mortgage penetration has historically remained low, largely due to short loan tenors, high interest rates, and limited liquidity for banks. Mortgage refinance institutions help address this by providing long-term funding to commercial banks, enabling them to issue more affordable and longer-term mortgages.
If implemented effectively, the reform could significantly expand access to long-term housing finance, thereby increasing home ownership rates, particularly among middle-income earners.
Greater availability of mortgages would stimulate demand for formal housing developments, encouraging structured urban growth and planned real estate projects.
This rise in construction activity would in turn boost demand across key industrial inputs such as cement, steel, roofing materials, and hardware, strengthening local supply chains.
Beyond construction, the ripple effects would extend to employment creation in related sectors including legal services, land surveying, property management, banking, and insurance, reinforcing the broader economic contribution of the housing industry.
In economic terms, a deeper mortgage market stimulates domestic investment and broadens financial inclusion — both essential for middle-class expansion and urban productivity.
Professionalising Property Valuation
The Valuation Act, 2025 introduces the Institute of Certified Valuers to oversee registration, regulation, and professional standards for valuers.
Property valuation plays a central role in mortgage lending, taxation, land acquisition, and infrastructure compensation. Weak or inconsistent valuation practices can distort markets, inflate asset prices, and expose banks to risk.
By professionalising the valuation field, the new law is expected to significantly strengthen integrity and efficiency within Uganda’s property market.
Clear standards and formal registration of certified valuers will improve transparency in real estate transactions, ensuring that property prices reflect credible and consistent assessments.
This, in turn, will help reduce disputes over land and property pricing, a persistent source of delays in both private investments and public infrastructure projects.
Financial institutions are also likely to benefit from more reliable asset valuations, strengthening their confidence in mortgage lending and reducing exposure to risk.
Additionally, the reform enhances fairness in compulsory land acquisitions for public projects by promoting objective and professionally verified compensation assessments, thereby minimizing conflict and fostering smoother project implementation.
A regulated valuation profession supports not only private investment but also government infrastructure development, where accurate compensation is critical to project efficiency.
A Coordinated Reform of the Construction Value Chain
What distinguishes the three laws is their integrated and complementary approach to reform.
Instead of addressing isolated weaknesses, they collectively reinforce the entire construction value chain, from project approval to property ownership and asset valuation.
Regulation at the building stage strengthens safety and compliance standards, ensuring that structures are sound and legally approved.
Financing at the ownership stage improves mortgage liquidity and regulatory oversight, expanding access to long-term housing finance. Valuation at the asset stage introduces professional pricing standards and stronger risk management, enhancing transparency and investor confidence.
By aligning these critical components, the reforms reduce fragmentation in a sector that plays a significant role in GDP growth, job creation, and domestic demand, laying a more stable foundation for sustained economic expansion.
Implications for Uganda’s Growth Agenda
Uganda’s youthful population and rapid urbanisation place increasing pressure on housing, infrastructure, and city planning systems. A well-regulated construction and housing finance sector is essential to meeting these demands sustainably.
By tightening oversight, deepening the mortgage market, and standardising valuation services, the new legal framework positions the sector for more structured growth. It also enhances investor confidence — a critical ingredient as Uganda seeks to attract capital into infrastructure and real estate.
The ultimate test, however, will lie in implementation. Effective enforcement, institutional capacity, and stakeholder compliance will determine whether the reforms translate into safer buildings, more accessible housing finance, and stronger economic multipliers.
For now, the assent of the three laws marks a significant step toward modernising Uganda’s construction and property ecosystem — and reinforcing its role as a driver of national economic transformation.
