NHCC seeks sh500b annually to tackle housing deficit
“Aware that land belongs to the people and the shrinking land space due to sprawling developments, NHCC requests for sh300 billion per year for acquisition of adequate land, especially in cities and municipalities to facilitate timely funding and implementation of projects."
Eng. Kenneth Kaijuka, head of NHCC, appearing before MPs. (Photo by Teopista Nakamya)
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To address the country's housing deficit, the National Housing and Construction Company (NHCC) has appealed to the Government to provide at least sh500 billion annually for the next five years to support affordable housing development.
This is contained in documents submitted by the entity's chief executive officer (CEO), Eng. Kenneth Kaijuka, to the House Committee on Lands, Housing and Urban Development, chaired by Edson Rugumayo, on August 5, 2026.
Kaijuka said proceeds from the sale of the houses would create a revolving fund that would continuously finance the construction of affordable housing.
“Aware that land belongs to the people and the shrinking land space due to sprawling developments, NHCC requests for sh300 billion per year for acquisition of adequate land, especially in cities and municipalities to facilitate timely funding and implementation of projects. Availability of conflict-free land will facilitate attraction of major developers on a long-term basis for mass developments,” he added.
Arguing that if adequate development funds were appropriated, the current housing shortage would be significantly lower.
Housing deficit
Table 1: Uganda’s Housing deficit by quality and Lifespan (Derived by NHCC)
No | Housing Type | Lifespan as per NPH 2016 | Current Housing Shortage |
1 | Permanent Housing Type | 50 years + | 7,000,000 |
2 | Semi-Permanent Type | 15-49 years + | 5,000,000 |
3 | Temporary Housing Type | 0-14 years | 2,400,000 |
Kaijuka said that if Uganda's housing deficit is measured using only permanent houses, defined as those with a lifespan of 50 years or more, the country faces a shortfall of seven million units.
If semi-permanent houses, with a lifespan of 15 to 49 years, are included, the deficit falls to five million units.
He said the situation had been compounded by the lack of an annual Government budget allocation for housing.
“All the projects developed by NHCC over the years have been financed using commercial loans at interest rates ranging between 18-25%. What this means is that if a unit is to be sold at Sh100 million, Sh25 million will be bank money and the remaining Sh75 million is insufficient to cover land, materials, labour, profits, etc. This leads to small and costly products which become unaffordable to most Ugandans,” Kaijuka said.
Potential job creation
Kaijuka said massive investment in affordable housing could spur job creation, particularly for professionals such as surveyors and engineers who are currently struggling to find opportunities, while also creating a larger market for construction materials.
MPs pledge support
Committee chairperson Edson Rugumayo agreed that the housing gap needs urgent attention.
“As a person who has gone through this, I was filled with a lot of pain. Knowing that this sector has been abandoned for all this long. It is very painful. Yesterday, here, we were talking about slums. Honourable colleagues, the reason we are put in these committees is for us to dedicate our time, listen to issues and advocate for them,” Rugumayo observed.
He added that while MPs must legislate for their communities, they must also champion issues of national importance.
“Who owns the land in Naguru? And why are you not developing it?” Bakashaba asked.
About NHCC
The National Housing Corporation was established under the National Housing Corporation Act of 1964 (Cap. 321) as a wholly Government-owned parastatal to increase the country's housing stock and promote organised home ownership.
It was later renamed the National Housing Construction Corporation under Decree No. 19 of 1974 and placed under the Ministry of Works, Housing and Communications.
In 2002, under the Privatisation and Divestiture Reforms (PERD) Act (Cap. 98), it was incorporated as a limited liability company and renamed the National Housing and Construction Company Limited.
The Ministry of Finance holds a 51% stake, while the remaining shares are held by the Minister of State for Privatisation.
Its fortunes declined in 2005 when, under a debt settlement agreement with the Libyan government led by Muammar Gaddafi, the Government of Uganda swapped part of a $25 million debt (approximately Sh35 billion) for a 49% shareholding by the Libyan government.
Following Gaddafi's removal from power in August 2011, efforts to fully revive NHCC were hampered by competing claims to the Libyan shareholding.
There was, however, a breakthrough in 2017 when the High Court granted the Ugandan majority shareholder permission to run the company's affairs as a "single member" while preserving the interests of the absent shareholder.
“What that means is that because you are a limited liability company, your highest decision-making organ is the board. And your ultimate meeting would be the shareholders’ meeting, AGM (Annual General Meeting). When board members are not there, the company risks holding AGMs. You can’t borrow, appoint and move,” Kaijuka elaborated.