Uganda's efforts to address its housing shortage and achieve sustainable urbanization goals are being significantly hindered by the undercapitalisation of the National Housing and Construction Company Limited (NHCCL), according to the 2024 Auditor General’s report.
The company’s struggle to meet its mandate has resulted in a severe shortfall in affordable housing, exacerbating the urban housing crisis.
SDG 11, which emphasises the creation of inclusive, safe, resilient, and sustainable cities, is at the heart of Uganda’s housing development agenda.
NHCCL is central to this goal, with a strategic plan aimed at addressing the country’s estimated 1.6 million housing unit deficit.
To meet these objectives, the government committed to capitalizing NHCCL with Shs231.5 billion, including Shs118 billion in contributions.
However, only Shs30 billion—just 25% of the expected government contribution—was allocated in the year under review, severely limiting the company’s capacity to build affordable housing.
The consequences of this underfunding are stark. Between 2018 and 2022, NHCCL was able to construct only 1,474 housing units, far below the targeted 69,288 units, achieving a meagre 2.12% of the goal.
This underachievement has deepened the housing crisis, especially in rapidly growing urban areas, and has led to an increase in informal settlements and overcrowded conditions.
NHCCL management has raised the issue with Parliament, and the Ministry of Finance, Planning and Economic Development (MoFPED) has been engaged to secure the necessary funds.
However, the persistent funding shortfall calls into question the government’s commitment to resolving the housing crisis.
The Auditor General’s report underscores the urgent need for the government to honor its funding commitments to NHCCL to enable the company to fulfill its mandate and contribute to sustainable urbanization.
