Examining the affordable rental housing gap in Kampala City, Uganda

Mutebi, Muhammed

Examining the affordable rental housing gap in Kampala City, Uganda

Thesis / Dissertation

2026

Publisher

University of Cape Town

Department

Department of Construction Economics and Management

Faculty

Faculty of Engineering and the Built Environment

Abstract

Uganda is facing an escalating housing crisis due to the rapid urbanization and rural-urban migration, which have resulted in a severe shortage of affordable rental housing. This paradox is particularly striking given the high demand, significant potential for growth, and prospects for a good return on investment in the housing market. The aim of this study therefore, is to identify the factors hindering the development of affordable rental housing in Uganda. A qualitative research approach was employed, using semi-structured interviews with 16 participants from diverse backgrounds and expertise. The interviews were conducted both through physical face-to-face interactions and online sessions to accommodate the participants' preferences and geographical locations. The study focused on low- and middle-income renting populations from the five divisions of Kampala, the capital city of Uganda. The data collected was transcribed and analyzed using thematic analysis. The study revealed that property managers, developers, financial institutions and government are critical stakeholders influencing the housing market as their contributions and interests shape the market's trajectory. Also, the results revealed that the current institutional and policy framework in Uganda has constraining factors that affect the provision of affordable rental housing. These factors create barriers to entry and affordability such as inadequate regulations, limited access to finance and inefficient land use. More so, the findings indicate that amenities, transportation, demographics and housing policies shape the affordable rental housing market. The study recommends that addressing the challenges of affordable rental housing in Uganda requires a multi-faceted approach that involves regulatory reforms such as zoning regulations, to remove barriers to entry and affordability. Prioritizing affordable housing and community amenities can be achieved through incentives for developers and improved public housing options. This can be further enhanced by promoting mixed-use developments, stakeholder engagement and local council involvement to contribute to sustainable and community-focused solutions. These recommendations enable Uganda to create a more inclusive, sustainable and equitable housing market that provides housing options for all its citizens. This study contributes valuable housing insights for policymakers, practitioners and stakeholders in sub-Saharan Africa.

Keywords

affordable rent

Uganda

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