MPs seek reliable, realistic real estate valuation in proposed law

KAMPALA - Members of Parliament (MPs) say they are seeking a solution to the country's valuation system challenges in passing the Valuation Bill, 2024.

The House committee on physical infrastructure says the country’s valuation system, which is critical for land compensation, loans, real estate, and public projects, has long suffered from unreliable and unrealistic assessments.

To cure this challenge, Parliament has passed the Valuation Bill, 2024, following the adoption of the committee report, which introduced sweeping reforms aimed at closing loopholes and professionalising Uganda’s valuation sector.

Committee deputy chairperson Tony Awany, who presented the report during plenary on Thursday, 04 September 2025, said the flaws in the system had resulted in “delayed implementation of public investments and infrastructure projects, financial losses, contestations of government valuations, increased litigation against the Government, hefty court awards, as well as imperfect real estate markets and non-performing loans.”

Institute of valuers to be created

The new law establishes the Institute of Certified Valuers of Uganda, sets professional standards, and strengthens the Office of the Chief Government Valuer (CGV). Key clauses were also amended to prevent abuse.

Valuation in Uganda, Awany said, had long suffered from unprofessional practices that required urgent reform.

“The valuation function has for years, suffered from a lack of standards, unclear professionalisation, and unreliable practices. This Bill, with the committee’s recommendations, sets clear definitions, strengthens institutions, and streamlines membership and practice to protect both government and the public,” he said.

One major reform concerns the powers of the Chief Government Valuer. The original Bill required statutory valuations whenever a court ordered one, which the committee warned could involve the CGV in every property-related court case.

“Only court orders specifically made to the Chief Government Valuer to carry out valuation should fall under statutory valuation,” the report stated.

No exceptions for training

Membership of the institute has also been tightened. While the draft Bill allowed the CGV and staff to automatically become members, the committee recommended that all valuers undergo training and examinations, except those already belonging to recognised professional bodies.

Recognition of foreign qualifications was confirmed to remain under the National Council for Higher Education, not the Institute.

Governance of the new Institute was refined. The committee recommended that the four practising valuers on the governing council must have experience, be elected at a general meeting, and that ambiguous dismissal grounds, such as “moral turpitude” or “any other reasonable ground,” be removed.

“The phrase ‘moral turpitude’ is incapable of exact definition; therefore, the proposal is subject to abuse,” the report noted.

Harmonisation of licensing provisions

Licensing provisions were harmonised. Parliament resolved contradictions between “certificate of licence” and “certificate of practice” for sole practitioners, gave the council discretion to grant or deny licences, and exempted the CGV’s office from requirements designed for private valuers.

New clauses were added to make the Chief Government Valuer responsible for all government valuers and officers undertaking statutory valuations across ministries, departments, and agencies. Another clause ensures that individuals aggrieved by a valuation decision may appeal.

The Bill initially proposed that anyone practising valuation without a valid certificate would face a fine of shillings 100 million or imprisonment of up to two years. The Minister for Local Government, Raphael Magyezi, argued for a lower fine, suggesting shillings 10 million as more realistic.

“It is okay to provide for a penalty, but 5,000 currency points (100 million) is too much. Is it possible to scale it down and be a little more realistic? I am looking at shillings 10 million,” he stated.

Deputy Attorney General, Hon. Jackson Kafuuzi, noted the difficulty in fixing a penalty, suggesting 1,000 currency points (20 million) as sufficient, and proposed leaving discretion to the courts.

“The effect of this problem might be so huge, in billions and yet the fine might be only shillings 10 million or five million,” he said.

Speaker Anita Among guided that a maximum of 5,000 currency points be approved, in line with the committee’s report.

With the adoption of the report after debate, the Bill was passed and now awaits Presidential assent.