Ms Persis Namuganza, the State Minister for Lands, Housing and Urban Development, has warned financial institutions to stop what she described as an “ugly and inhumane” practice of seizing people’s properties over defaulted loans.
Speaking while presiding over a post-budget dialogue organised by the Uganda Society of Architects on August 6 in Kampala, Ms Namuganza said it is unfair for banks and other lenders to take over properties developed by Ugandans simply because they failed to pay their loans on time.
This, she said, has pushed many developers into absolute poverty and depression, and has ended up shrinking the entire country’s development agenda.
‘So many commercial buildings have been taken due to failure to complete loans on time. They should give people longer repayment periods,’ Ms Namuganza added.
Her remarks come at a time when majority of Ugandan developers who default on loans are suffering at the hands of banks that later sell off their properties at low market value.
While a few wealthy property owners run to the Commercial Division of the High Court and secure temporary orders stopping the sale – often citing irregular procedures, unfair interest rates, or lack of spousal consent – most small-scale developers end up losing their properties.
‘This must stop with immediate effect and a lasting solution put in place,’ Ms Namuganza said.
‘We need a proper strategy on financial literacy because this has caused health problems, death and the distortion of families,’ she added.
The post-budget dialogue, held under the theme ‘Tracking Housing Commitments in the National Budget,’ brought together government officials, planners, financiers and civil society to address Uganda’s housing crisis.
On the same platform, Ms Namuganza called for orderly and planned development, emphasizing the role of architects in guiding developers before construction.
‘Before construction, people should consider the neighbourhood. A commercial building should not be mixed with residentials. Our country should have proper physical planning,’ she said.
She also raised concern over high costs of building materials, heavy taxes, and restrictions on sand extraction by the Ministry of Environment and Minerals.
‘You must demonstrate affordable housing models and prove to the President that it is possible. My ministry remains committed to supporting the sector,’ she said.
Ms Namuganza further urged architects to promote uniformity in housing, especially in slums, arguing that the current lack of order makes the country look unattractive. She suggested benchmarking with countries like Russia and Canada.
Finance Minister Mr Henry Musasizi, represented by Deputy Permanent Secretary Mr Patrick Ocailap, outlined government expectations for the sector. He cited the need to upgrade informal settlements such as Kivulu and Namuwongo, expand affordable housing, use research to guide policy, and understand real market demand, especially among students.
Ocailap also stressed housing’s contribution to Uganda’s target of a US$500 billion economy by 2040, and called for innovative approaches, lower construction costs, reduced taxation in the building sector, and measures to curb informal housing. He commended the Uganda Society of Architects for organizing the dialogue.
Architect Kenneth Amunsimire, President of the Uganda Society of Architects, said the dialogue aimed to hold government accountable on housing commitments under the National Development Plan.
‘We are here to dialogue and track government commitment to housing in the national budget and to discuss with various stakeholders what can be improved,’ he said.
‘Housing is one of the five pillars of development. We are here together with professional bodies, housing finance, the Ministry of Finance, the Ministry of Housing, the National Planning Authority, engineers, banks and civil society so that housing is prioritised and the deficit of 2.4 million units is reduced,’ Amunsimire added.
He noted that the Society is celebrating 60 years of existence and raised concern about unregistered practitioners.
‘Only 410 members are registered out of the many who have studied architecture but are not registered. We have a board that disciplines such people. We urge the public to engage a genuine architect or seek help from us to avoid substandard work,’ he said.
Dr Joseph Muvawala, Executive Director of the National Planning Authority, encouraged citizens to prioritise decent housing as a foundation for development.
Paul Mayende, Advocacy Manager at Habitat for Humanity Uganda, said the organization has for over 43 years helped Ugandans access decent housing through interlocking blocks that lower construction costs.
He called on government to reduce taxes on building materials, particularly lower-grade products such as 32-gauge iron sheets.
Officials at the dialogue agreed that addressing Uganda’s 2.4 million unit housing deficit will require coordinated action on planning, taxation, financing, professional regulation and innovative construction methods.