• Fri. Jun 9th, 2023

UGANDA, Kampala | Real Muloodi News | The Minister of Lands, Housing, and Urban Development, Judith Nabakooba, has emphasised the government’s need for USh350 billion to initiate the construction of long-awaited low-cost houses for all citizens.

This budget allocation includes USh88 billion for the capitalisation of the National Housing and Construction Company Limited.

During a recent announcement on May 11, Minister Nabakooba highlighted that these low-cost houses aim to address the housing deficit currently plaguing the country, with a staggering 2.4 million housing units required.

Among this deficit, 210,000 units are needed in urban areas, while 1.395 million units are needed in rural areas.

The minister confirmed that she had already presented the USh350 billion budget figure to Parliament in her ministerial policy statement for the financial year 2023–24.

She further explained that the acute housing deficit in Uganda stems from a significant disparity between housing demand and supply.

Minister Nabakooba elaborated on the issue, stating, “This grand housing deficit is contributed to by the annual deficit of 284,000 arising from average annual urban and rural demand for housing at 150,000 and 194,000 against an annual supply of 60,000. The few supplied are largely informal, and the few formal ones are exclusively for the high end.”

To emphasise the affordability challenges faced by some low-income earning Ugandans, the minister highlighted that 96% of the population cannot afford the cheapest typical house constructed by a developer, which costs around USh183 million.

With a median income of USh220,000 per month for urban residents and USh168,000 per month for rural residents, the majority of Ugandans (76%) can only afford houses ranging from 12 to 24 million shillings.

Habitat for Humanity, a housing organisation, has estimated that approximately 900,000 housing units in Uganda fall below standard quality, further exacerbating the housing crisis.


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