The streets of major European cities; Paris (France), Brussels (Belgium), Lisbon (Portugal), Rome (Italy), Tirana (Albania) and Madrid (Spain) are still smoldering following weeks of protests over economic hardships.
Back home in Uganda, the looming housing crisis that is about to strike us, is still making push-ups.
About a month ago, at a friend’s insistence, I reluctantly agreed to ‘check out’ as millennials and Gen Z’s love to say, his favourite spot.
One of things that nudged me to go was that I wanted to establish for myself and empirically so, whether ‘froth’ tastes better at upscale nightspots. Located in the leafy Kololo suburbs, the place sits close to a diplomatic installation belonging to an emerging global power.
Beyond the sassy and classy clientele and the fuel guzzlers lining the route to this haven of happiness, patrons are also welcomed by fresh air.
But it was the surroundings that caught my eye. Nearby stood a building of five or so storeys, tucked inside a gated, tiled compound and boasting some of the most attractive terraces I have seen in a while.
An askari told me the building houses rental apartments. Judging by its appearance, I figured out that a single unit must be going for well over Shs1 million. Which still sounds as an understatement in my ears.
Across Kampala, posh rentals are sprouting up everywhere like mushrooms while high-rise apartments continue to pierce the skyline.
However, this construction boom is not matched by a corresponding expansion in affordable housing for low-income earners. Consequently, Uganda’s cities risk witnessing a proliferation of slums and slum-like settlements and a rise in homelessness.
Regarding the latter, I do not mean street kids or people living with mental health challenges, but hardworking citizens who simply cannot earn enough to put a roof over their heads.
Going by figures National Housing and Construction Company (NHCC) Chief Executive Officer Kenneth Kaijuka supplied to the House Committee on Lands chaired by Edson Rugumayo, on August 5, Uganda’s housing deficit stands at seven million units when calculated solely on the basis of permanent houses, defined as those with a lifespan of at least 50 years.
When semi-permanent houses, with a lifespan of 15 to 49 years, are included, the deficit drops to five million units.
Including temporary housing units, which have a lifespan of up to 14 years, further reduces the estimated deficit to about 2.4 million units.
Using his own words, Kaijuka said all the projects they have developed over the years have been financed by commercial loans at interest rates ranging between 18 and 25 percent. A situation he said had led to small and costly products.
To deliver affordable housing, Kaijuka said NHCC needs about Shs500b over the next five years. While I doubt whether our government which recently splashed Shs166.8b on cars for MPs would readily commit such a sum to a national priority, either way, our leaders have no option.
Because, as they will soon discover, it is foolhardy to leave the housing sector entirely in the hands of private players who can increase rent whenever they wish. Secondly, few city dwellers can afford the growing number of apartments, save for those holding heavily-salaried jobs in public and private sectors.
The situation becomes even more worrying when one factors in surveys such as the 2021 National Labour Force report conducted by the Uganda Bureau of Statistics which showed that half of the country’s employed population earns a median monthly cash wage of just Sh200,000. This is the reality for many Ugandans who brave the daily traffic jams to get to work early every morning.
The situation is hardly any better for professionals, such as primary school teachers, some healthcare professionals and security personnel, as well the other segment eking out a living in the private sector, many of whom earn between Sh500,000 and Sh1.5m a month.
It is public knowledge that whereas incomes have largely remained stagnant over the years, the cost of living has steadily risen. School fees, for instance, has risen exponentially over the past five years. So much so that kindergarten going kids have to part with a Shs1million to learn doodling.
Similarly, a one-kilogram bar of soap that cost Shs3,500 five years ago now goes for Shs6,000. For motorists, a litre of petrol that cost about Shs3,900 five years ago is now approaching Shs8,000.