On 20th February 2026, the President of Uganda assented to three new laws aimed at reforming the housing and construction sector. These Acts took effect on 19th March 2026 and introduce significant regulatory changes.
At BORA ADVOCATES, we provide this brief overview of the key legal developments.
1. The Building Control Amendment Act 2026
This Act addresses illegal developments, non-compliance with building standards, and building collapses.
Key Provisions:
- Stricter penalties: Up to 5 years imprisonment and a fine of UGX 40,000 per square meter of illegal construction.
- National Building Review Board: Reconstituted with nine technical members from engineering, architecture, physical planning, and surveying.
- Board powers: Issue stop/evacuation orders, inspect sites, and refer complaints to police.
- Standardized building committees: Established at district and urban council levels with clear composition.
- Remedy for administrative delay: Applicants may complain to the CAO or Town Clerk if permits are delayed. Decisions must be made within 30 days (building permit) or 14 days (occupation permit).
- Mandatory occupation permits: Required for all houses, schools, hospitals, and arcades.
2. The Mortgage Refinance Institutions Act 2026
This Act empowers the Bank of Uganda to oversee all mortgage refinance institutions. The reform is expected to stabilize housing finance markets and improve access to credit for housing.
3. The Valuation Act 2026
This Act establishes the Institute of Certified Valuers of Uganda as the professional regulatory body.
Key features include:
- Mandatory licensing regime
- Codified professional ethics and disciplinary processes
- Prescribed rules of valuation and reporting
Why this was necessary:
On 2nd March 2026, the Commercial Court in Centenary Rural Development Bank Ltd vs Namulondo Hasifa & ors (HCCS No. 0355 of 2023) held valuers jointly and severally liable for professional negligence. The valuers had overstated the value of a mortgage property that turned out to be vacant land. Court awarded UGX 471,963,606 plus UGX 50,000,000 in general damages at 20% interest per annum. This case highlighted the urgent need for statutory accountability, now addressed by the new Act.
Conclusion
These three laws revamp Uganda’s legal framework governing housing, construction, mortgage finance, and valuation services. Developers, homeowners, financial institutions, and valuation professionals should familiarise themselves with the new requirements.
BORA ADVOCATES is available to advise on compliance, permits, and any disputes arising under these recent legal developments.