- The Building Control (Amendment) Act, 2026
- The Mortgage Refinance Institutions Act, 2026
- The Valuation Act, 2026
Together, they represent a comprehensive effort to reform the legal and institutional framework governing construction, housing finance, and valuation services in Uganda.
1. The Building Control (Amendment) Act, 2026
The Building Control (Amendment) Act, which came into force on 19th March 2026, addresses persistent challenges such as illegal developments, non-compliance with building standards, and recurring building collapses.
Key Reforms Introduced
a) Stricter Penalties
The Act introduces severe penalties for illegal construction, including:
- Imprisonment of up to 5 years
- Fines of up to UGX 40,000 per square meter of illegal construction
This marks a decisive move toward enforcing compliance and deterring unsafe building practices.
b) Strengthening the National Building Review Board
The law reconstitutes the National Building Review Board, expanding it to nine members with expertise in:
- Engineering
- Architecture
- Physical planning
- Surveying
New powers of the Board include:
- Issuing stop and evacuation orders
- Imposing penalties
- Inspecting construction sites
- Referring matters for police investigation
- Guiding building committees on compliance
c) Standardization of Building Committees
District and urban building committees have been standardized nationwide. Key features include:
- Chairperson: Officer responsible for engineering
- Secretary: Physical planning officer
- Members: Health, architecture, and environmental officers
This reform ensures consistency and technical competence across all jurisdictions.
d) Addressing Administrative Delays
The Act introduces remedies for delays in permit processing:
- Complaints may be escalated to the Chief Administrative Officer or Town Clerk
- Decisions must be made within:
- 30 days (building permits)
- 14 days (occupation permits)
e) Introduction of Mandatory Occupation Permits
One of the most significant changes is the mandatory requirement for occupation permits.
This means:
No building—residential, commercial, or institutional—can be legally occupied without approval from the relevant authorities.
Failure to obtain an occupation permit exposes property owners to legal penalties and potential closure of premises.
This applies to:
- Homes
- Schools
- Hospitals
- Arcades and commercial buildings
Purpose:
- Ensure structural safety
- Protect occupants
- Enhance regulatory compliance
- Increase government oversight
2. The Mortgage Refinance Institutions Act, 2026
This Act empowers the Bank of Uganda to regulate mortgage refinance institutions.
Key Objectives:
- Stabilize housing finance markets
- Improve access to long-term housing credit
- Strengthen financial oversight
The law is expected to make housing more accessible by improving liquidity in mortgage lending systems.
3. The Valuation Act, 2026
The Valuation Act introduces a formal regulatory framework for valuation professionals in Uganda.
Key Features:
- Establishment of the Institute of Certified Valuers of Uganda
- Mandatory licensing of valuers
- Enforcement of professional standards and ethics
- Defined disciplinary procedures
Why This Law Matters: A Landmark Court Case
The importance of valuation regulation was underscored by a recent High Court decision in Centenary Rural Development Bank Ltd vs Namulondo Hasifa & Others (HCCS No. 0355 of 2023).
In this case:
- Valuers were found jointly and severally liable for professional negligence
- A property was overvalued despite being vacant land
- The court awarded:
- UGX 471,963,606 in damages
- UGX 50,000,000 general damages
- Interest at 20% per annum
This case highlighted the risks of unregulated valuation practices and reinforced the need for statutory accountability—now addressed under the new Act.
Conclusion
The 2026 legal reforms mark a transformative shift in Uganda’s construction and housing sector. With stricter enforcement mechanisms, mandatory occupation permits, improved financial systems, and regulated professional standards, the legal landscape now demands greater accountability from all stakeholders.
At BORA ADVOCATES, we advise developers, property owners, investors, and professionals to take proactive steps toward compliance