President Signs Three Laws Tightening Construction Oversight and Housing Finance

President Yoweri Kaguta Museveni has assented to three major laws aimed at strengthening Uganda’s construction regulation, housing finance framework, and property valuation standards; marking a significant tightening of oversight across the built environment.

The new legislation is expected to:

• tighten control of building standards

• deepen the mortgage finance market

• professionalise property valuation

  
  

Signed at State House Entebbe, the package includes the Building Control (Amendment) Act, 2025, the Mortgage Refinance Institutions Act, 2025, and the Valuation Act, 2025.

Law	Core Focus	Expected Impact
Building Control (Amendment) Act, 2025	Stronger construction enforcement	Higher compliance pressure on developers
Mortgage Refinance Institutions Act, 2025	Housing finance liquidity	Potential expansion of mortgage access
Valuation Act, 2025	Professional regulation of valuers	More credible and standardised valuations

Building Control Amendment Raises the Stakes

Assented to on February 19, 2026, the Building Control (Amendment) Act significantly overhauls the 2013 framework in response to persistent building collapses and unregulated construction.

The most consequential change is the shift from flat fines to scale-based penalties. Developers building without permits now face UGX 20,000 per square metre, replacing the previous UGX 1 million flat fine, alongside possible imprisonment of up to two years.

Where negligence leads to death, injury, or property damage, penalties rise to up to UGX 10 million or 12 years’ imprisonment.

The Act also introduces express enforcement powers, allowing authorities to issue on-the-spot fines and immediately seal non-compliant sites.

Leaner but Stronger Oversight

The National Building Review Board (NBRB) has been streamlined from 16 members to 9, while maintaining cross-sector and professional representation, including a dedicated slot for Persons with Disabilities to reinforce accessibility compliance.

Regulators have also been given sharper enforcement tools. District and urban Building Committees can now explicitly order evacuation or demolition of illegal structures, while the NBRB may directly intervene where local authorities fail to act.

To improve technical scrutiny nationwide, Building Committees are now standardised to include the Engineer (Chair), Physical Planner (Secretary), and officers responsible for Health, Architecture, and Environment.

Building inspector reviewing construction site plans against built structure

Permit Bottlenecks Targeted

The amendment also addresses slow approvals that often push developers into informal construction. Applicants may now appeal directly to the NBRB if a Building Committee fails to decide within statutory timelines.

The law further creates a formal pathway for approving unconventional building technologies and materials, acknowledging emerging construction methods.

Mortgage and Valuation Reforms

Alongside construction controls, the Mortgage Refinance Institutions Act, 2025 empowers the Bank of Uganda to regulate refinance institutions, a move intended to deepen the mortgage market and improve access to long-term housing finance.

Meanwhile, the Valuation Act, 2025 establishes the Institute of Certified Valuers to oversee professional standards, registration, and discipline of valuation practitioners, aiming to improve consistency and credibility in property valuations.

Stakeholder	Practical Signal
Developers & contractors	Much tighter compliance environment
Urban authorities	Stronger enforcement mandate
Banks & lenders	More structured mortgage ecosystem
Property valuers	Mandatory professional regulation
Homebuyers	Potentially improved financing pathways

Key Takeaway: Uganda has moved decisively toward stricter construction enforcement, more structured housing finance, and tighter professional oversight.

This package of laws represents one of the most consequential regulatory tightenings in Uganda’s built environment in recent years, particularly as urbanisation accelerates and housing demand expands.