Kampala | Yoweri Kaguta Museveni, the President of Uganda has assented to three major pieces of legislation aimed at tightening building safety standards, lowering the cost of housing finance, and professionalizing property valuation in Uganda.
The newly signed laws: the Building Control (Amendment) Act, 2025; the Mortgage Refinance Institutions Act, 2025; and the Valuation Act, 2025 are expected to address long-standing concerns over unsafe construction, high borrowing costs, and unreliable property appraisals in the country’s fast-growing real estate sector.
The Building Control (Amendment) Act, 2025 introduces stricter enforcement measures against illegal construction and non-compliance with approved building plans.
Among the key provisions are heavier penalties, including fines calculated per square meter of unauthorized structures, and expanded powers for regulators to issue stop-work orders on sites found in breach of the law.
Officials say the changes are intended to curb the rising cases of substandard buildings and structural collapses, particularly in urban centers such as Kampala and Wakiso, where rapid urbanization has strained oversight systems.
The amendment strengthens the mandate of the National Building Review Board and local authorities to ensure developers adhere to approved standards. Regulators can now move more swiftly to halt works on buildings deemed unsafe or constructed without proper permits.
Construction industry stakeholders have welcomed the move but cautioned that enforcement will be critical.
“The law is strong on paper. What matters now are consistent inspection and zero tolerance for corruption,” said one Kampala-based engineer.
New framework for affordable long-term mortgages
The Mortgage Refinance Institutions Act, 2025 empowers the Bank of Uganda to regulate mortgage refinance institutions, paving the way for a structured secondary mortgage market.
Under the new framework, licensed mortgage refinance institutions will provide long-term funding to commercial banks and other primary lenders, enabling them to extend cheaper and longer-tenure home loans to borrowers.
Uganda’s mortgage market has long been constrained by high interest rates and short loan tenures, limiting access to housing finance for middle-income earners. Analysts say the new law could ease liquidity pressures on banks and stabilize interest rates over time.
“The refinance model allows banks to access longer-term capital, which they can then pass on to customers through more affordable mortgage products,” said a banking sector analyst in Kampala.
“If implemented well, this could significantly expand home ownership among Uganda’s growing middle class.”
However, financial experts warn that macroeconomic stability, effective regulation, and public awareness will determine whether the benefits reach ordinary Ugandans rather than remaining confined to formal sector employees.
The Valuation Act, 2025 establishes the Institute of Certified Valuers, a new statutory body tasked with regulating and professionalizing property valuation in Uganda.
The institute will set standards, enforce ethical conduct, and accredit qualified valuers, addressing concerns about inconsistent and sometimes inflated property valuations that have undermined trust in real estate transactions and loan assessments.
Reliable property valuations are critical for mortgage lending, taxation, compulsory land acquisition, and investment decisions with stakeholders saying the lack of a unified regulatory body has contributed to disputes, litigation, and financial risk in the property market.
By creating a formal professional framework, the government aims to enhance transparency and investor confidence in Uganda’s real estate and financial sectors.
Optimism tempered by calls for effective implementation
Reactions from industry players, urban planners, and financial experts have largely been positive, with many viewing the trio of laws as a coordinated attempt to stabilize Uganda’s housing ecosystem from construction standards to financing and valuation.
For middle-class Ugandans seeking to build or buy homes, the reforms signal potential relief from unsafe developments and expensive loans. Yet civil society actors and housing advocates stress that effective implementation will be the true test.
“There have been good laws before, but weak enforcement has undermined their impact,” said a housing rights advocate in Gulu City.
He further noted that the government must ensure that local authorities have the capacity and integrity to enforce building standards and that cheaper mortgages are not out of reach for ordinary earners.
Observers also point to the need for public education so developers, contractors, and prospective homeowners understand the new requirements and opportunities.
As Uganda’s urban population continues to expand and demand for housing grows, the success of the Building Control (Amendment) Act, the Mortgage Refinance Institutions Act, and the Valuation Act may play a pivotal role in shaping safer cities, a more accessible mortgage market, and a more credible property sector.
For now, stakeholders agree on one thing: the legislative groundwork has been laid but delivering tangible change for everyday Ugandans will depend on rigorous enforcement, regulatory vigilance, and sustained political will.
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