The State of the Urban Sector in Uganda - 2022 Report Highlights

 
THE STATE OF THE URBAN
SECTOR REPORT FOR
UGANDA, 2022
 
FINAL REPORT
 
Presented 
during the MLHUD Dissemination
Workshop
 
Outline
 
Introduction and
Introduction and
background
background
Client’s Requirements
Client’s Requirements
Methodology
Methodology
Thematic Reports
Thematic Reports
 
 
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Introduction
 
Urban areas are the engines of economic growth
& development functioning ( employment,
education, technology & knowledge transfer and
markets).
The primarily challenge of urban development is
uncontrolled rapid urbanization (projection: 
70%
of the world’s population will live in cities by
2040).
Uganda is also rapidly urbanizing at about 5.2%
p.a with 583 TC, 31 MC, 11 Cities.
This study was aimed at understanding the
current state of urbanization in Uganda so as to
inform Policy and other strategic government
and private sector interventions.
 
 
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The  Goal
 
To produce through a participatory process the
state of Urban Development sector report for
Uganda 2022.
 
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Specific Objectives:
Identify the key urban development issues/challenges,
potentials/opportunities, and needs and provide
information on appropriate strategies for
implementation
Identify institutional and policy strengths and
weaknesses in the governance of urban areas and
suggest areas for reform
Identify and critically analyze the state of urban
development
Produce a detailed report of the sector
Scope of work
 
Develop data collection tool
(adapted from the UN-HABITAT)
Engage stakeholders
11 Cities
10 Municipalities
10Town Councils
Analysis the existing situation
looking at different thematic areas
Write a report on the state of
urban environment in Uganda
 
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undefined
 
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Selected urban councils for the study
undefined
Approach 
and Methodology
and Methodology
 
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There is limited data on the urban sector in Uganda.  Information
herein was based on 2014 Census data, some statistics and estimates
from sampled ULG
Some indicators within the tool could not be handled because of the
unavailability of data
 
THEMATIC REPORTS
 
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URBANISATION IN UGANDA
 
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Overview
 
Uganda has a population
base of 35 million and a high
population growth rate of
3.2% - one of the fastest-
growing populations in Africa
(Un-Habitat 2016 – 2021).
Also experiences rapid urban
population growth rate - % of
the population living in urban
areas increased from 12.3%
in 2002 to 18.6% in 2014
which reflects an annual
urban GR of 5.2% and 
the
level of urbanization in
Uganda will increase to 50%
by 2050 (UBOS 2014).
THE URBAN SECTOR AS A CATALYST FOR NATIONAL
DEVELOPMENT SOCIO- ECONOMIC TRANSFORMATION
 
Government prioritizes sustainable development of the
urban sector as the engine for the country’s economic
growth and to provide high quality of life
The sector offers real economic opportunities;
about 70%  average contribution to the GDP of the
Country (NUP).
Poverty level is 7% lower in urban areas compared to
19% in rural areas (NUP).
If well planned and effectively managed, will result in a
competitive and productive sector to stimulate socio-
economic growth
Benefits of agglomeration which enhances access to
services
Plays a dual role as a producer and consumer.
Market for goods and services both internally
generated and from rural areas
The target is to attain the Country’s Vision 2040 of Middle
Income Status if urbanization is harnessed properly
 
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Urbanization Trends in Uganda
 
Pre-colonial
Before 1890, societies in Uganda were organized around tribal
kingdoms and it is from these that early urban centres in the
country were initiated for administration and public service
Kampala – Mengo
Fort Portal – Kabarole
Hoima – Bunyoro
Mbarara – Kamukuzi/Ankole, and
Bugembe – Jinja, Etc
End of the 19th century – Colonial (1900 – 1962)
Era 1900-1962 was for settlement stabilization,
fixation and pseudo-planning by the British and
defined Uganda’s urban spatial and development
pattern
Creation of large and medium urban centers as
central points of administration, and commerce
towards the capital and other world ports. (jinja,
Tororo, Mbale)
 
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Urbanization Trends in Uganda…
 
Post-colonial
Concentrated and polarized pattern, with the major towns of
Kampala and Jinja dominating was consolidated.
Medium sized centres functioning as 'intermediary centres and
regional headquarters continued to expand
Small centers developed more as district administration centres or
as administration centres for counties and sub counties;
 
Military State (1970-1980) & 'Changing' Urban
Composition
Ideology for the military regime of “self-reliance and
Ugandanization” was declared in 1972  that created magendo
economy
Period of changing urban land uses, environmental decline and
growth of the urban informal sector, as well as growing urban
poverty
Between 1970-1980 - stagnation of the larger centres, the
'stumbling' of some medium centres and the shooting up of smaller
centres
Creation of administrative provinces which later became main
urban centres
 
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Urbanization Trends in Uganda…
 
Period of laissez faire and urban informality (1986–2004)
From 1986 – 2004 - adoption of more liberal economic policies in the
pursuit of economic growth after two decades of political turmoil and
economic collapse.
In the face of central government resource constraints, the changes in
internal boundaries and subsequent creation of districts resulted into a
gradual evolution of small rural service centres into government
recognized urban centres, without any semblance of urbanity.
 
Age of urban renaissance 2005- to-date
Urban Policy to control & manage the Country's high urban growth
Policy of decentralization; political control of urban areas and the
electorate, planning and managing urban areas
Supportive policies; National Land Policy, National Land Use Policy,
Housing policy, National Environment Management Policy, 
LED policy,
National Population Policy, PPP policy, 
Slum Upgrading Strategy, etc.
Creation of Ministry responsible for Urban Development;
Ministry of Local Government - for urban administration and
supervision
 
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Current urbanization trends
 
Population living in urban areas increased from 12.3% in 2002 to 18.6%
in 2014 which reflects an annual urban growth rate of 5.2% - among the
highest in the world
Kampala accounts for 39.6% of the total urban population (
2002
Census)
 however this reduced to 20.3% as the number of urban centres
in the country increased – proliferation of urban areas
By 2035 Uganda’s population is projected to 68.4 million of which 30%
will be in urban areas
 
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undefined
Colonial & post-colonial Urbanization Trends;
 
The country currently
has 
11 cities 31
Municipalities and 583
Town Councils
undefined
Qualifica
tion of
cities as
per the
NUP
2017 set
criterion
Using the  urban Policy criteria, all cities in Uganda save Kampala, do not qualify to be cities but
upgrading was rather based on administrative arrangement.
With NUP set density, only Kampala and Soroti meet the minimum requirement for city status while
Masaka, Hoima, Mbarara and Gulu fall way below the threshold
Only Kampala and Arua cities meet the minimum requirement under the population threshold while
Soroti, Hoima, Fort portal and Lira are far below the threshold.
All cities meet the minimum requirement for area however some cities like Masaka, Lira, Gulu, Arua
and Mbarara are too big which makes them lose out on other parameters like density.
The bigger percentage of these cities, other than Kampala (76.9%), is typically rural (have less than
10% built up coverage except Jinja and Mbale who stand at 10%) which places a big financial burden in
service provision to populace that doesn’t generate the requisite revenue.
All had no approved PDPs except Kampala. Fort Portal, Jinja, Masaka and Hoima cities are in the
process of preparing new PDPs while Jinja, Arua and Gulu have their PDPs on deposit.
A functional urban council should be able to locally raise at least 50% of its budget but only Arua
meets this requirement
Viability of Uganda’s Urban Councils
undefined
Viability of Uganda Urban Councils...
Qualification
of
Municipalities
as per the
NUP 2017 set
criterion
The expansion and upgrading of municipalities in Uganda does not follow any systematic criteria
but rather selective application which must be corrected.
Densities of some municipalities are way above those of cities e.g. Iganga, Kira, Makindye
Ssabagabo and Nansana while some
 are way below the threshold (in Nebbi, Kumi, Ntungamo and
Bushenyi.
By population criteria, Nansana, Makindye Ssabagabo and Kira would qualify for city status while
some would qualify to be TCs.  Ntungamo does not even qualify for TC status but rather TB.
Based on the minimum area criteria, Iganga MLG would not even qualify for TC status.
Only Kira, Bushenyi, Makindye Ssabagabo and Kumi MLGs would qualify to be MLGs using the
minimum area criteria. 
Other than Kumi, all the selected MLGs in the study had approved PDPs.
The functionality criterion requires an urban council to be able to locally contribute at least 50% of
its budget but none of the MLGs meets this requirement.  Ntungamo municipality was the worst
performer with only 2.5% locally raised revenue
undefined
Viability of Uganda Urban Councils…
Qualificati
on of Town
Councils
as per the
NUP 2017
set
criterion
None of the town councils meets the NUP criteria for TC status.
In terms of population size, Kasangati, Kyenjojo, Buwenge, pakwach and Dokolo meet the
policy requirements.  However, Dokolo TC was the outlier under this criterion.
Using the density criteria, Kasangati, Busiu, Buwenge and Pakwach would qualify for TC
status but Dokolo, Aduku, Kamwenge, Kyenjojo and Kihihi are outlyers with very low
densities
Using the minimum area criteria, Kasangati, Kyenjojo, Kamwenge and Dokolo are way above
the threshold (above 90 sq kms) which is above the requirement for TC save for Kamwenge.
On the other hand, Buwenge was way below the threshold for the minimum area
requirement.
Using the PDP requirement, Kalisizo, Pakwach and Dokolo would qualify for TC status.
Urban Sector Challenges
 
Mismatch between the policy requirements and the capacity of the urban
councils to meet the set requirements
Urban growth that is un-planned, with high rates of sprawl and unplanned
growth, lack of integration between sectoral and spatial planning, inadequate
provision of basic services, weak urban management capacity and significant
fiscal constraints
Urban youth dependency is large, while the urban working age population
remains relatively small hence many urban center now have large numbers of
unemployed youth.
Urban footprints growing faster than urban population, the physical extent of
urban areas in Uganda is growing much faster than their population. This has
profound implications for energy consumption, greenhouse gas emissions,
climate change and environmental degradation.
Climate change: an enduring threat to cities. Urban areas are both the source of
the majority of the world’s carbon emissions and home to the majority of the
country’s population that will be the victims of climate change.
Shortfall in Funding for Urban Development.
Affordable and adequate housing - still an illusion for many;
Deteriorating Urban Environment
Inadequate Urban Infrastructure and Services
 
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Government fundamentals for strengthening the urban Sector
 
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New Urban Agenda (NUA) and 2030 Agenda for Sustainable
Development (SDGs);
Vision 2040 identifies fundamentals to harness the opportunities from
urbanization;
NDP III prioritizes urbanization and urban development as very critical
for accelerating socio-economic transformation with the following
objectives;
NPDP defines the pattern of human settlement;
 Albertine PDP
strategies that are critical to the Uganda's urbanisation process;
National Transport Master Plan (2020-2040) strategies that are critical to
the Uganda's urbanisation process;
Expressway Development Master Plan 2020-2070 strategies  for Uganda's
urbanisation process;
Master Plan on Logistics in the Northern Economic Corridor 
is focused
on implementing a number of strategies that are critical to the Uganda's
urbanisation process;
National Urban Policy review 
to bridge the gap between the set
standards and the situation on ground.
Invest in nation-wide integrated economic and spatial planning
.
Invest in city-wide development and infrastructure plans.
Support urban physical planning and urban systems development
Urbanization programmes should not be politicized
Active participation of the youth
The compact city concept
Urban Land Management, including addressing Urban Sprawl
 
LAND TENURE
 
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Land tenure regime in Uganda
 
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A well-functioning urban area is contingent
upon secure and enforceable rights over land
and property
Land Act recognizes four classes of land tenure:
o
Freehold - the holding of registered land in
perpetuity or for a period less than perpetuity
that may be fixed by a condition
o
Leasehold - tenure that is created either by
contract or by operation of law between two
parties ,
o
Mailo - holding of registered land in perpetuity. All
its characteristics are exactly the same as freehold
tenure. Mainly in Central Uganda and Bunyoro
o
Customary - predominant mode of access right in
Uganda, mainly in eastern and northern regions
Land tenure regime in Uganda
 
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Customary land tenure was the
most dominant in cities (33%),
Municipalities (40%) and Town
Councils (38%).
Free hold was most dominant in
TCs at 33% and least dominant
at city level (19%).
Leasehold was most dominant
in cities with 30% coverage
Freehold
 
was most dominant in
western region at 34%
, 
mailo in
central with 40%, 
leasehold in
central at 23%,
 
customary was
highest in eastern with 54%
Customary tenure was the most
dominant in all regions save
central
undefined
Land Tenure Challenges
undefined
Land Tenure Challenges
undefined
Government interventions on tenure security
Government through MOLHUD has created 21
Regional Land Office (cadaster zonal areas) in
order to ease access to land services
Development of the Land Information System
(LIS) that commenced in 2010 (at Ministry Zonal
Offices (MZOs), Surveys and Mapping
Department, the National Land Information
Centre and Ministry Headquarters) aimed at
establishing an efficient land administration
system in Uganda.
Central region has nearly all (98.04%) the land
registered in comparison to other regions (50%)
The Northern region has not had most of its land
registered (
8%) 
because of its reliance on the
customary system.
The complexity of tenure comes into play as over
60% of urban dwellers in Uganda are informal
settlers on land (LANDnet Uganda 2017).
Location of Cadastral
sheets that have been
fully covered
Strategies for land tenure harmonization & regulation
 
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Urban land use planning as a path to land tenure regularization;
Tenure Responsive Land Use Planning (TR-LUP) at all stages i.e.
planning and implementation.
Incorporate tenure responsive LUP with other planning and
land management tools and approaches;
MoLHUD pilot successes on tenure security through Physical
Planning and Systematic Land Adjudication and Certification in
the nine (9) Refugee Host Districts (RHDs) since 2019 should be
upscaled to other areas.
Institutional responsibility and capacity for tenure responsive
land-use planning;
Enhance capacity and address resource constraints of
planning authorities;
Improving coordination;
Strengthening urban development stakeholders’
coordination;
Local knowledge is key;
Avail resources for relocation; and
Making urban development and planning a priority.
Awareness creation
 
SPATIAL PLANNING
 
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Overview
 
Assessment of this sector was based on PDPs
and Detailed plans looking at preparation,
implementation and Development Control.
The development control function seeks to
manage and regulate property development to
ensure that all development takes place in
conformity with the detailed schemes.
In the absence of physical plans, decisions are
made entirely at the discretion of the physical
planner evaluating a development proposal.
This leads to inconsistency in decision making
and uncertainty in the minds of developers
leading to urban informality.
 
 Availability of PDPs
45% of urban councils had
PDPs.
Majority of MCs (80%) had
PDPs while only 27% of cities
had PDPs.
PDPs for Gulu, Fort Portal
and Jinja were still in draft
form.
Most cities still used old MC
PDPs.
71% of TCs had no PDPs due
to meager resources.
 
Central region had the
highest share of PDPs
at 71% while Western
had the lowest with
37%.
Coverage of Detailed Plans
Absence of detailed plans resulted into growing levels of informality
and haphazard growth.
Cities and MCs had area coverage of 10% while TCs had 5%.
Majority of urban councils save for cities, their level of coverage was
between 1 and 30%.
TCs - the available detailed plans were mainly work done by students
on internship.
Cities and MCs had detailed physical plans prepared in the early
sixties and no significant effort to review them
 
Total area coverage under
detailed physical plans was very
small - 
only 10%.
Urban areas with detailed
plans, most did not cover the
the entire urban council
boundary.
Coverage of Detailed Plans…
Central region had the least coverage of detailed plans with only 4%
followed by the Western region with 6%.
Yet, these two regions have the
largest percentage of built-up area (hence the informality).
Central region with the highest number of urban councils had the least
coverage of detailed plans.
Central Govt needs to develop a policy or assessment parameters that
would drive the preparation and implementation of detailed physical plans
in urban areas.
Availability of 5 Year Development Plans
Majority of urban councils (81%) had 5 year development plans.
MCs recorded the highest share with 5 YR Devt Plans at 90%.
Cities recorded 78% while TCs had the lowest at 75%.
Arua and Gulu cities did not have 5 Yr Devt Plans.
Many cities were in the process of developing the said plans
.
Lack of a 5 Yr devt plans attracts a penalty during the annual
performance assessment by OPM hence hinders service delivery.
Availability of 5 Year Development Plans…
Western region had the best performance as all urban
councils had a 5 Yr devt plans at 100%.
Most urban councils in the Northern region lacked the 5 Yr
devt plans (43%).
The poor performance of 57% was attributed to lack of 5 Yr
devt plans by Arua and Gulu and Dokolo TC among others.
Implementation of PDPs and DPS
Majority of MCs at 33% implemented between 11 to 20%.
Majority of TCs at 48% implemented between 0 to 10%.
Overall, implementation of PDPs in Uganda’s urban areas is only at 10%.
Most PDPs expired before they were implemented.
Low levels of implementation were attributed to;
complex land tenure system which makes land acquisition very costly.
Inadequate funding and non-prioritization of physical planning activities
Weak institutional and enforcement capacity and urban poverty.
 
60% of urban councils
implemented between 0 to
40% of their PDPs.
Almost two-thirds of urban
councils implemented less
than 40% of their PDPs.
This implies low levels of
implementation of PDPs in
urban areas.
Source of Funding for Spatial Planning
Central region use locally raised revenue to fund their PDPs at 67%.
North region depended on central government funding at 63%.
Eastern region depended on donor funding (67%).
Western region depended equally on central government and donor
funding both contributing 40% each.
Central Government should balance its efforts in other regions for
equitable and balanced urban development.
 
Source of Funding for Spatial Planning…
Cities depended more on donor funding at 87% than Central
Govt funding at only 13% (
USMID funded while at MC level).
Local revenue was the major source of funding for the MCs
at 50% with Central Govt and donor community at 25%
each.
MCs had more capacity of generating local revenue and
were good at prioritization of physical planning.
Central Government was the major source of funding for
TCs at 67% and local revenue at 33%.
Central Govt should prioritize town councils because of
their inability to generate adequate local revenue.
MCs have demonstrated a good practice of using locally
raised revenue in funding PDPs.
 
Implications
The absence of PDPs has resulted into substantial growth
of unplanned settlements that lack infrastructure and
services.
Un-guided concentration in the urban core leading to
squatter settlements and dispersion due to sprawl in the
urban periphery.
Significant urban expansion with developments taking
place along major transportation routes, forming ribbon
developments and scattered settlements.
Lack of access to basic infrastructure and services which
are only limited within the CBD and the surrounding
areas.
Provision of infrastructure and facilities has not matched
with the pace of urban growth.
Urban development pattern is un-sustainable and renders
service provision very costly.
 
Spatial Planning Challenges
Weak governance and institutional framework – 10% of TCs had no
established PPCs (MoLHUD, 2016).
Limited human resources and skills for enforcement of PDPs – 25% of TCs
had no Physical Planner as Land Officers were in control (MoLHUD, 2016).
Limited funding & low prioritization of urban planning – 27% of TCs had no
budgetary allocation in FY 2013/14 (MoLHUD, 2016).
Lack of awareness of available PDPs and roles of each stakeholder – 70% of
TCs do not carry out sensitization (MoLHUD, 2016).
Proposed and existing rights of way, service areas and no development zones
are not demarcated for easy enforcement hence encroachment.
Poor coordination among planning authorities and infrastructure & utility
provision agencies and parastatals.
Costly and time consuming processes of preparing PDPs – Most Urban
Authorities continue to rely on external consultants due to limited capacity
and this has a high cost implication.
Political interference and competing interests & needs of the political
organs of Councils.
 
Recommendations
MoLUD should  establish a Physical Planning Fund to support implementation of
key and major physical planning proposals in terms of land use and public
infrastructure and utilities
Expand the coverage of detailed physical plans in urban authorities so as to
ensure orderly urban development.
Prioritize formulation of urban action area plans for upgrading and promoting
vitality of already developed areas.
Undertake effective integration of urban physical plans with economic
development plans, sector plans and works plans.
Provision of public infrastructure and utilities such as road network and public
facilities as a strategic tool to lead and induce desired orderly and sustainable
developments, (World Bank Report, 2018).
Physical demarcation of proposed infrastructural routes, service areas and no-
development zones should be undertaken to avoid present and future
encroachment.
Partner with private real estate developers to pilot innovations in developing
planned neighbourhoods or site & serviced areas.
Explore and establish sustainable financing options for implementing and
enforcing urban physical development plans.
 
HOUSING
 
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Overview of Urban Housing
 
The current housing requirement is about 767,000 units,
presenting a critical shortage of 54,400 units in Uganda’s
urban areas.
About 70% of the urban population stays in informal
settlements, of which 20% reside in typical slums
There is a major shortage of decent and affordable rental
housing forcing low income population into low quality
and squatter settlements in city centers close to jobs.
Uganda’s urban population will grow from 11 million in
2022 to 20 million in 2035 raising the housing demand to
1.4 million units - a total increase in housing needed of
48,700 units per annum.
Housing market is faced with high mortgage interest rates
which increase the cost of borrowing leading to high cost
of housing.
Urban Housing Demand …
 
Number of housing stock required is
about 1.4 million units by 2035, of which
285,600 would be required for Kampala
alone and 331,800 in Central Region.
Additional 633,000 units will have to be
build between now and 2035 (about 48,700
units per year).
 
Urban Housing Demand …
 
Urban Household Incomes
Issue: 
Incomes are low and informal for most urban households
to afford a house.
A household purchasing a low-cost house of Ushs 72
million (US$ 20,000) would need to earn at least Ugx
2,862,011 (US$ 800) a month to afford it, paying a monthly
installment of Ugx 1,001,704, represents 35% of the
monthly income at an interest rate of 16%.
This implies that 89% of the Uganda’s urban households
could not qualify for mortgage to afford a low-cost house
of Ugx 72 million due to low incomes.
Urban Housing Demand…
 
Housing Finance
Issue: 
Interest rates are high limiting access to housing
finance
 
The interest rate for mortgages ranges from 16 to 20% per
annum with a repayment period of up to 20 years.
Uganda currently has a total value of Ugx 1.6 billion (US$
429,166) in residential mortgage loans collectively held by
financial institutions.
The interest on mortgage loans has still remained relatively
high at about 17%.
The mortgage market in Uganda accounted for only 1% of
the GDP.
An urban household with an average monthly income of
Ugx 703,000 could afford a mortgage of Ugx 18 million (US$
5,000) at an interest rate of 16% amortized for 20 years with
a monthly repayment of 35% of the monthly income.
 
 
 
Urban Housing Demand …
 
Urban Rental Housing
Issue: 
Rental housing is more affordable and accessible
though of low quality.
Rental housing is growing at a higher rate due to un-
affordability of own house ownership.
48% of urban households were renting.
The average household monthly rent is Ugx 263,500
($74) for both formal and informal rentals.
For an urban household earning the average monthly
income of Ugx 703,000, this amounts to 37.5% of
monthly expenditure on house rent, above the
maximum 30% expenditure standard.
Hence, most urban households staying in rented
housing were facing un-affordable house rents.
 
 
 
 
 
 
Urban Housing Demand …
 
 
Supply of Urban Housing
 
Main Issue:
Poor Conditions & Inadequate Formal Supply of
Housing.
Quality of Urban Housing
Issue:
About 70% of urban households live in informal
settlements, of which 20% stay in typical slums
There is still shortage of decent and affordable rental
dwellings which doesn’t match with urban population
growth.
Growing conversion of owner-occupied houses into
rental accommodation increases the share of rental
housing.
Supply of Urban Housing…
Cities had about 50% of households renting, followed by town
councils and municipals at 47.5% and 41 respectively.
Kampala had the highest percentage of renting households at 72%.
Municipalities and town councils had a high demand for land for
construction of individual dwellings (owner-occupiers) resulting in
low-density areas.
Central region had the highest share of renting households with
46% due to high concentration of Uganda’s urban population
 
Supply of Urban Housing…
 
Nature of Urban Shelter
Issue
:
At regional level, permanent structures were highest in the central
region at 75% and lowest in the Eastern at 45%
More temporary structures were recorded in Northern and Western
region at 20%
At ULG level, municipalities had more permanent structures at 56%
There was a considerable high level of temporary structures across the
board at 24%
 
Supply of Urban Housing…
 
Urban Housing Occupancy
Issue: 
Surplus of smaller housing units characterized with
overcrowding and congestion increasing the spread of
infectious and respiratory diseases.
 
UN-HABITAT recommends a maximum of two persons
per room of 3.5m by 3.5m.
Majority of urban households (51%) had only one room
while 82% of renting hhs occupied similar dwellings.
Given the urban household size of 4, more than half of
households are overcrowded and congested.
This provides a clear indicator of poor quality of housing
characterized with overcrowding and congestion
responsible for infectious and respiratory diseases
.
 
 
Urban Settlements
 
Only 31% of the urban areas had planned or
formal settlements while the rest were largely
informal.
About 70% of the urban households lived in
unplanned and informal settlements, of which
20% lived in typical slums.
Most informal settlements resided on customary
tenure which is largely un-registered.
51.4% of the buildings were illegal and hence un-
authorized.
There is high level of informality in urban areas
with more than half of the buildings being illegal.
 
 
 
 
Urban Settlement…
 
The urban form is mostly characterized by
level and nature of concentration of
settlements.
Highly concentrated settlements in the
CBD and the surrounding areas.
Low density settlements in the peri-urban
areas with rural characteristics.
This duality has resulted into informal
housing characterized by overcrowding in the
centers and residents living in low density and
spacious dwellings with insufficient
infrastructure and utilities in the urban
periphery.
This has given rise to linear or ribbon pattern
following transportation routes
 
 
 
 
 
 
 
 
 
 
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Housing Constraints…
 
High Cost of Building Materials
Limited Access to Housing Finance
Building Guidelines and Regulations –
impede development in the sector
(stringent).
Policy of enabling environment in
housing sector is no longer attainable.
Central Government’s role of
facilitating the formal supply of
affordable housing is not being met.
 
 
 
 
 
 
Recommendations
 
Central Government should increase accessibility to
affordable & decent housing for all.
Un-lock the enabler’s role to become more responsive to
all segments of urban population.
Facilitate delivery of planned & serviced land.
Reduce cost of construction by cutting costs of housing
inputs such as building materials.
Ensure access to mortgage housing financing for all
population segments
Explore low-cost technologies and use of locally available
materials.
Formalize incremental housing construction due to low
urban incomes.
Promotion of decent and affordable rental housing for all
population.
Revise the building regulations and guidelines to care of
the emerging issues in the housing sector
 
URBAN REFUGEES AND
MIGRATION
 
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Overview
Urban refugee population and area
coverage in Uganda
INFLUENCE OF URBAN REFUGEES ON HOST COMMUNITIES
 RECOMMENDATIONS AND WAYFORWARD
 
Inclusive city planning and financing;
Land consolidation and land banking;
Support and strengthen Local Economic
development initiatives;
Well-serviced socioeconomic infrastructure
development;
Encourage sustainable development through
proper land use planning and management;
Promote environmental conservation and
protection;
Design and implement integrated refugee
settlements;
Increase investments in refugees housing and
infrastructure;
Strengthen urban and territorial systems;
Information dissemination and awareness;
Strengthening social cohesion between host and
migrant communities.
 
SAFETY AND SECURITY
 
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Overview
 
Urban safety a key component for realizing livable,
productive, inclusive and sustainable urban areas and
hence MUST be prioritized.
60% of all urban residents in developing countries have
been victims of crime at least once over the past five
years, and in Uganda this stands at 43.9%  as of 2020.
Urban safety goes beyond safety of persons, the integrity
of investments and the sustainability of urban
development. This report therefore focuses on urban
safety in three (3) major components, i.e.;
Urban crime and violence;
Tenure security and eviction;
Natural and human made disasters (traffic accidents).
Crime-an act, omission or attempt in violation of
criminal law, while crime rate refer to the crime
rate as the incidence of crime per 100,000
people.
 
URBAN CRIME & VIOLENCE
 
Trend analysis of urban crime rate
Urban crime and violence
Natural and Human-Made Disasters
The impact of disaster tends to be
particularly severe in urban
settlements, due to their high
population density, complex
infrastructure and often location in
vulnerable environmentally sensitive
areas.
Disaster risk increases due to rising
complexity and interdependence of
urban infrastructure and services,
greater population density and
concentration of resources.
 
Natural and Human-Made Disasters…
Initiatives towards improving urban safety and security
 
URBAN ECONOMY
 
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70
Urban Economies - Overview
 
Competitiveness
: 
to enable business firms and industries
create jobs, raise productivity and increase income of
citizens over time. Competitive growth exploits
comparative advantage of an area
 
Productivity: 
to efficiently use available inputs/resources
to produce goods and services. This is reflected in level
of GDP and GDP per Capita
 
Local Economy: 
activities carried out by dwellers in an
areas to earn a living
Urban Economies -Competitiveness
Current urban
growth is sprawling
with limited or no
control.
This limits the
growth of urban
areas basing on
comparative
advantage,
agglomeration and
competiveness.
Urban Economies - Competitiveness:
Western
Hoima-Fort Portal-Kasese oil,
Gas & Tourism cluster
Industrial zone, 
Presence of oil
(including by products) and
Gas , Tourism and Recreation
related activities with
connection to DR. Congo and
international community by
airport
 
Central
Kampala National
Metropolitan economic area:
Primacy in most fields due to
capital city advantages,
diverse economy, relative
higher value addition
economy
 
Preferred Situation
Northern
Northern Uganda
Agriculture Cluster:
Hub for Agriculture in
the north of Uganda.
Focused on agro
processing and light
industries and export to
Southern Sudan and
North – Western DR.
Congo
Eastern
Mbale – Tororo Industrial
Processing and Trading zone:
Industrial zone(agro), Rich
Agricultural hinterland,
trading and logistical services
due to Link to Kenya, high
urban densification.
Western
Mbarara - Kabale regional
trading corridor: 
industry
zone,  presence of
minerals(e.g. gold, mica)
with good connection to
Rwanda and DR. Congo
Urban Economies - Competitiveness
 
Cities: 
regional administrative/commercial urban centres in their region: centres of
urban densification based on comparative advantage; planned industrial parks and
relatively good road connections
Municipalities:
All municipalities are major administrative/commercial centres for
the respective districts: 
providing administrative, commercial, financial, education,
and major government and public services in their respective localities; located in
abundant food production areas.
Town Council
: 
Administrative centre; market centres of agriculture hinterland
 
Challenges
National level and local level urban Sprawl growth and low population densities
hence limiting agglomeration effects, economies of scale and economic
transformation.
Limited exploitation of the comparative opportunity and competitiveness in the
regions.
Inadequate integrated connectivity: intercity and intra city and regional
(connection to other countries) connections.
 
Implication
limited exploitation of the comparative advantages in the different cities and
hence limit their competitiveness, optimum resource utilization, contribution to
GDP and their full contribution to economic development and prosperity.
 
Recommendation
Promote Compaction, densification and connectivity of urban areas, to reduce cost
of services, cost of market access and enable exploitation of economies of scale
and agglomeration, hence making urban centres more competitive.
Urban Economies - Productivity
 
Urban areas are engines of growth of
national economies.
 
The value of concentration in urban areas
leads to increased productivity and job
creation, especially in services and
manufacturing sectors and hence higher
GDP.
 
E.g. urban areas constitute 55% of the
world’s population, and generate about
80% of the world’s gross domestic
product (world bank).
In Uganda, urban areas account for 70%
of non-agricultural GDP and provided
36% of overall job growth between 2001-
2010(GOU)
 
GKMA houses 10% of the population,
generate 33%  of the national GDP, has
46% of the formal sector workers, 70% of
the manufacturing firms, (World Bank),
yet this area is only 3% of the total land
cover of Uganda.
Urban Economies - Productivity
 
Contributions to 80% of GDP: 
Central 59%; Eastern 8.5 Northern: 2.8%; Western:10.2%
 
GDP Contributions and per Capita for the Top Twenty - Five Districts by Region
 
Source: USAID
Urban Economies - Productivity
Cities: Districts which housed
current cities - 40%
All the districts which
formerly housed the cities
were among the top twenty
– five districts
13 municipalities; Kira,
Nansana and Makindye
Ssabagabo in Wakiso
district; Lugazi and Njeru in
Buikwe district; Mubende,
headquarter for Mubenda
district; Tororo, headquarter
for Tororo district; Iganga,
headquarter for Iganga
district, Ntungamo,
headquarter for Ntungamo
district; and Masindi,
headquarter for Masindi
district.
47 Town Councils located in
25 districts out of the 136.
Urban Economies - Productivity
 
Challenges
Economic growth is skewed to the central region which contributed
about 60% to 80% of the GDP. Economic growth is further skewed to
GKMA which contributes about 40%.
Low level of productivity as indicated by the per capita, with only three
cities, five municipalities and 17 town councils located in districts with
GDP per capita above USD. 1000.
Implications
Development and growth will concentrate in the relatively developed
areas straining the limited resources and resulting into diseconomies of
scale(e.g. traffic jams), slowing growth and development in these areas.
Other areas will remain underdeveloped, limiting their full potential
 
Recommendations
Promote balanced growth by strengthening the created cities.
Enhance technical and financial capacities of newly created city institutions
One national Planning/coordinating development programs/supervision
office for urban areas with Urban data Management system
Develop and maintain regional integrated infrastructure and utilities
Encourage growth based on specific functions and comparative
advantage to promote specialisation but also to attract diversified
investment.
Urban Economies – Main Economic Activities
The largest sector in urban regional economies is the service sector -
provided employment to 48% of those employed
There were no major percentage differences across regions in
employment within the same sector. For example trade ranged from 28%
in the North to 35% in central; Manufacturing ranged from 9% in the East
to 13% in the West
Manufacturing more diversified in central region; more value addition in
central region esp. GKMA
 
Percentage Employment in Main Economic Activities by Region
Urban Economies – Main Economic Activities
The largest sector in cities and municipalities was the service sector - provided
employment to 45% of those employed
The major percentage differences cities and municipalities was in the trade sector Cities
35% and municipalities 45%, since economy is more diverse in cities
Food processing was sizeable in cities and could be separated from other manufacturing
Urban Economies – Main Economic Activities
About 52% HH practice some form of urban
farming
Highest percentage was Western region with
62% HH in urban farming.
High reliance on Agric, 23% HH have
subsistence as main source livelihood,
highest in Western 34% HH have subsistence
farming as main source of livelihood
Urban farming was more in municipalities
57% HH practice some form of urban farming in
municipalities
High reliance on Agric, 26% HH have subsistence
as main source livelihood in municipalities.
 
Source: UBOS – Census 2014
Urban Economies – Main Economic Activities
Challenges
Limited industrialisation basically in agro processing
Large low value service and industrial sectors  products as
indicated by low GDP per capita. These cannot favorably
compete on international markets
Many small scale enterprises with 70% of enterprises having
low turnover of less than 10millions and employing  many
unskilled/semi skilled youth of limited education.
Large proportion of urban population depend on agric even
as main source livelihood
Implications
Low quantity and quality  job creation, leading to low
incomes(and poverty) and hence limiting  transformation of
the economy to better income country and prosperity.
Limited taxable entities leading to poor provision of
services
Urban Economies:
 recommendations and Conclusion
Recommendations
Building competitive urban areas 
with emphasis of clustering basing on
competitiveness and comparative advantage and reduce competition amongst
the urban areas themselves. This will lead urban areas to be engineers of growth
in the economy.
Promote balanced urban growth and support urban areas 
and link the urban
centres with modern transport systems. This will be pursued in line with the
above (build competitive urban areas), hence reducing the negative effects of
skewed development, but encourage complimentary development in urban areas
and leading to more equitable growth.
Promote the development of formal and informal enterprises
 
through:
Supporting the informal sector businesses to transforming into viable
and sustainable business enterprises
Supporting manufacturing through innovation, research, technology
and providing the necessary infrastructure
Relevant skilling of the population 
especially the youth, away from tradition
skills(carpentry, brick laying, welding etc.)high rates of unemployment among
the youth yet many enterprises in Uganda lack the requisite technical expertise
for industry and firms do not compensate for the low level of education and skills
by providing significant on-the-job training (An abc of industrialisation).
 
INFRASTRUCTURE &
UTILITIES
 
4/2/2024
 
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84
undefined
Spatial distribution of roads
Study investigated the Interaction
between roads, physical urban area
and population as typical
manifestation of urban development
.
Cities
Kampala city with 
smaller physical
area
 had high road density which
meant that it 
had high circulation of
roads
 whereas the 
rest of cities
with bigger physical areas
 had low
road densities thus 
low circulation
of roads.
Despite Kampala city having 
high
circulation of roads
, the  coverage
of 
roads per 1000 persons
 was high
thus higher congestion levels.
The reverse was true for the newly
created cities.
undefined
Spatial distribution of roads
Municipalities
MCs with 
bigger physical areas
had low road densities which
meant that they 
had low
circulation of roads
 whereas
those with 
small physical areas
had high road densities thus
high circulation 
of roads.
Congestion levels were still low
due to 
low coverage of roads
per 1000 persons
 however with
expected rise in population the
situation was expected to
change.
Town Councils
The above was true also for
town councils
undefined
Spatial distribution of roads..
Key issues.
Lack of road equipment.
Many urban areas lack PDPs and
detailed plans to guide
infrastructure development.
Inadequate funding for physical
planning to implement where
planning, opening and demarcation
of roads is a critical activity.
Tedious customary land tenure
acquiring process and costly mailo
land had made it difficult to acquire
land for investment and public
infrastructure.
Uganda road funds received by
urban authorities were for mainly
maintenance which aims at keeping
the road conditions as close to its
original design not
creation/expansion of roads.
Conclusion
There was an imbalance between supply
and demand for urban roads & thus
need to increase supply of urban roads.
Recommendations.
Acquisition of road equipment by
urban authorities with central
government support.
Urban areas have unique challenges
which should be considered in resource
allocation.
Put much emphasis on physical
planning of all urban areas to eliminate
unplanned settlements.
Ministry of Lands, Housing and Urban
Development should provide grant to
Urban LGs for preparation and
implementation of PDPs.
undefined
QUALITY OF URBAN ROADS-Road surface condition
The Quality of a road is dependent on the road’s
geometric characteristics (Alignment, profile, and
cross-section).
Asphalt surfaces or bituminous surfaces –the
commonest surface treatments that provide the best
quality due to their better traction (grip) and skid
resistance.
Cities
Urban roads accounted for 
7% 
(10,108Km) of the
entire country’s road network (144,785Km) and
paved urban roads accounted for 
5.6% 
(570.8Km) of
the entire country’s urban roads (MWT Sector plan
2015-2020).
6 out of the 11 cities had coverage of paved roads
above the national (5.6%).  The improved
performance in cities was due to road budgeting
outside road sector funding (
Donor funding).
Upgrading of a road to paved standard with bitumen
surface treatment was UGX 3.1 billion per kilometer
(NDP-III)
Note: figures indicate what is
required to improve roads in the
cities
undefined
QUALITY OF URBAN ROADS-Road surface condition
Municipalities
MCs performed better than
cities probably because cities
were bigger in physical size
than MCs.
Paved roads were mainly
concentrated within CBDs &
where efforts were made to
link CBDs and other suburban
areas the percentage of paved
roads was above 5.6%.
Town Councils
Coverage of paved roads was
below national (5.6%) 
due to
inadequate funding. Paved
roads were mainly UNRA
roads that traverse through
these towns.
undefined
Conclusion.
The low coverage of paved roads in urban roads points to a
lack of resilient road infrastructure to improve transport
connectivity, effectiveness, and efficiency. There is a need to
commit adequate financial resource allocation toward road
network improvement.
Recommendations.
Target to achieve average paved road density of 100 Km per
1000 Sq. km by 2040.
The percentage of paved roads in urban areas should be
increased from 5.6% to 32% (achieved by KCCA) in the long
term.
Formulate a financing strategy for future road infrastructural
development for all urban areas.
Promote low-cost road sealing technology in Town Councils.
QUALITY OF URBAN ROADS..-Road surface condition..
Quality of urban roads… –Road reserve widths
undefined
Quality of urban roads…. –NMT
NMT assessment recognizes that
streets are multi-modal which must
provide multi-modal transport to all
users.
The majority of road users in Uganda
preferred to use NMT; mainly walking
and 
cycling (MWT Sector Plan 2020).
However the use of bicycles was on
the rise since these not only offer
personal travel but also carry goods
and promote good health.
 
Cities
Cities lacked NMT facilities within the
ROWs rendering pedestrians and
cyclists susceptible to road accidents.
In cities where motorized speeds and
volumes were high, bicycle ownership
was on the decline and the reverse
was also true.
undefined
Quality of urban roads…. –NMT
Municipalities & Town councils
1)
Bicycle ownership was on the
rise.
2)
M
ajority of the MCs & TCs equally
lacked NMT facilities within the
right of way.
3)
Limited motorized modes in the
northern region had compelled
citizens to use bicycles.
C
onclusion
Evidence of ownership of bicycles
was an indicator that cycling was
inevitable despite the absence of
NMT infrastructure.
Recommendations.
Urban areas should adopt the
Universal design principles that
recognize 
walking and cycling in
transport, planning, design, and
infrastructure provision
Quality of urban roads…..-street lighting
The introduction of adequate street lighting
helps reduce night-time accidents and is an
established accident prevention measure in
urban areas.
Cities
Apart from Jinja, cities were performing
poorly.
Street lighting was a component in the
design & and implementation of new road
construction projects. 
Delivery was
entirely dependent on the availability of
funds committed to new road projects
thus, there were no standalone projects
funded specifically to provide street lights.
Areas with access to funds for new road
projects were better placed to benefit
than those with a lack of access.
Municipalities.
Majority of MCs were performing poorly
due to limited funds. Streets lights were
mainly on paved roads.
Where street lighting exists, vandalism by
people trying to generate an income
through selling accessories, electric wires
and cables containing copper was also a
deterrent factor.
Quality of urban roads…..-street lighting
Town Councils
The majority of the TCs could not afford to install street
lights due to limited financial resources.
Recommendations.
Need for Stand-alone projects funded specifically to
provide street lights.
At the city and municipal level, targets and strategies
should be set on how we can improve street lighting in
urban areas.
With support from central governments, urban authorities
should give priority to street lighting in the allocation of
funds to have uniformly lit areas.
Urban councils should also promote PPPs to attract
external support in this venture.
Central government should also provide incentives in
communities where streetlighting is promoted.
Urban roads funding & expenditure
Urban roads funding & expenditure..
URBAN PUBLIC TRANSPORT
Study Recognizes that 
t
he collapse of the Uganda Transport Corporation,
which offered bus service to & from Kampala in the 1990’s, gave birth to an
individualized approach to public transport where Private taxis & buses
licensed as PSV’s (Public Services Vehicles) by the TLB operate as public
transport vehicles.
Intercity Public transport system.
Intercity services existed where private Buses & taxis operate on defined
public routes from Kampala City to other cities/municipalities with
 
no
timetables, no fixed fares or fare structure.
Intracity Public transport system.
Intracity services only existed in Kampala & Jinja Cities with, 
no
timetables, no fixed fares or fare structure, no formal stops, no formal
terminals & no fixed routes
.
O
ther cities, MCs & TCs relied on  boda-bodas as the quickest way to get
around urban areas however they continue to 
operate without PSV
licenses and fixed routes.
Boda-bodas are regarded as non-sustainable mode i.e
1)
Not mass transit 
vehicles.
2)
Not safe & secure due to reported 
fatalities & injuries
.
URBAN PUBLIC TRANSPORT..
Conclusion.
Integrated Public transport is non-existent and existing services
were of poor standard.
Lack of integration among operators or among routes means
that passengers have to pay separately for each boarding of a taxi
or a Boda-boda, making public transport unaffordable to many;
especially the urban poor.
Recommendation.
Formulation of public transport policy to address all emerging
issues.
Reduce use of non-sustainable modes (cars & boda-bodas) &
transfer more people to use sustainable modes (walking, cycling
& public transport)
Government should fast track the implementation of Bus Rapid
Transit (BRT) and Light rail transit (LRT) re-organize public
transport and move towards franchised bus routes operated by
formal companies with an integrated fare system.
URBAN RAIL TRANSPORT
URBAN INLAND WATER TRANSPORT
URBAN AIR TRANSPORT
Social & Economic Infrastructure
C
onstruction & maintenance of facilities that support social & economic
services, (schools, hospitals or health centers, markets and other public
building structures).
Financing
.
Resources for the social & economic infrastructure include Local revenue, Gov’t
transfers & external funding channeled through Ministry of finance, Planning &
economic development.
Budget allocations.
Urban authorities Study found out that meagre resources were allocated to
construction & maintenance of social and economic infrastructure.  Available funds
were committed to only recurrent expenditure and none to capital projects.
External funding
The following projects had contributed to the rehabilitation and development of social
& economic infrastructure through line ministries.
1)
Markets & agricultural improvement project (MATIP) for construction of central &
auxillary markets aimed to boost markets in 21 MCs.
2)
Uganda teachers & schools effectiveness project (UTSEP) that provides construction
of primary school facilities.
3)
Uganda secondary school expansion project & UGIFT project for Construction of
secondary schools.
4)
Under MOH, Uganda health services rehabilitation project aimed at rehabilitation of
selected primary & secondary health care services.
Social & Economic Infrastructure
Conclusion.
The above 
external funded projects
where the right step in the right
direction.
Recommendation.
Formulating financing strategy for
social and economic infrastructural
development projects for all urban
areas  should be prioritized
 
URBAN UTILITIES
PROVISION
undefined
Urban water supply
Large towns were under the jurisdiction of NWSC and Small towns outside the
jurisdiction of NWSC were managed by the DWD-MWE in conjunction with
respective District and Urban Authorities
The study investigated the state of urban water supply by looking at access to safe
piped water WHERE piped water is defined as tap water from the distribution lines
of a piped water supply station
Cities
According to water and environment
sector plan 2020 prepared by (MWE), the
target was to increase urban water supply
from 
73% in 2014/15 to 100% by 2019/20
in towns with population greater than
15000.
By 2014 only 
two Cities
 (Kampala & Jinja)
had achieved 73% and 
none
 of the cities
had achieved 100% access by 2020
Failure to hit the 100% target was mainly
because NWSC lacks capacity to meet the
growing demand for services & urban
poverty where households cannot afford
connection fees and water charges.
undefined
Urban water supply…
Municipalities
By 2014 none of MCs had achieved
73%.
Town Councils
W
ater and Environment Sector
Plan 2020 indicated that safe
water coverage in the small towns
had significantly increased from
55% to 60% as a result of
completion of new construction
works under the Water and
Sanitation Development Facilities’
(WSDFs) arrangements instituted
by the MWE.
Majority of TCs had more than
15,000 people but were
categorized as small towns outside
NWSC
undefined
Urban water supply..
Key issues.
Unreliable and intermittent power supply
in northern Uganda had affected water
production.
Prolonged drought in some areas that
affected water supply reliability,
especially in northern Uganda.
By law a city is equivalent to a district,
but c
ities do not benefit from the Water
grant like districts to cover up gaps left by
NWSC Despite the high population in
comparison to districts (rural 
area
s).
Climate change effects have led to low
yields of both underground and surface
water resources.
Increased cost of production due to the
need to use more quantities of chemicals
to purify water in the NWSC-operated
systems,
Unplanned settlement patterns that lead
to difficulties in the supply of water.
Low level of connectivity in the newly
taken-over towns which renders the unit
cost of operation high.
Conclusion
Given the above issues level of water supply
leaves a lot to be desired if the 100% target is
to be achieved
Recommendations.
Improve access to safe, affordable, and
sustainable water supply 
f
or all large
towns with an emphasis on the financial
sustainability of NWSC systems.
NWSC should take over small towns
Extend the water grant to all urban areas
to extend water services that NWSC
cannot afford.
Provision of adequate electricity supply
and connection of all areas of Northern
Uganda to national power grid network.
Enforcing protection of both underground
and surface water resources by all
stakeholders to reduce pollution,
depletion and poor water quality.
Institute measures to reduce urban
poverty.
Put much emphasis on the physical
planning of all urban areas to eliminate
unplanned settlements.
undefined
Urban Sanitation
Two Sanitation systems exist:
1)
L
arge towns under the jurisdiction of NWSC- (Flush toilets-sewer line and
treatment).
2)
Small towns outside NWSC-Dry toilets/pit latrines/flush toilets with septic tanks-
transport to treatment site.
The study investigated the state of urban sanitation by looking at household access
to piped sewerage for large towns and households with no toilet facilities FOR
small towns.
Cities
P
iped sewerage in large towns stood at 
6%
(water and environment sector plan 2020 –
MWE).
All large towns had 
inadequate
 Hh access to
piped sewerage, citizens were relying on on-site
sanitation facilities. This was mainly due to
inadequate sewer network and infrastructure.
NWSC agrees that sewerage coverage was still
low 
i.e 
need to upscale sewerage services
through infrastructural development.
substantial proportion of Hh
s 
lacked toilet
facilities due to unplanned settlement patterns
undefined
Urban Sanitation..
Municipalities
All MCs had more than 15000 people
categorized as large towns under
the jurisdiction of NWSC but
majority completely lacked piped
sewerage services.
Town Councils
None of TCs had access to
conventional sewerage services-
Majority of TCs had more than
15000 but were categorized as small
towns outside NWSC
Northern and eastern Uganda had
the highest proportions of people
with no toilet facilities. This was
probably due to negative cultural
beliefs, taboos, urban poverty and
weak institutional and management
framework for enforcement of
existing laws.
undefined
Urban sanitation...
Key issues.
Urban areas do not benefit from the sanitation grants like
districts yet they are highly populated compared to districts
which are rural in nature.
Urban poverty where households cannot afford sewer
connection fees and cannot afford construction of individual
cesspools. Lack of affordability was ascertained by households
with no toilets.
Conclusion
Sanitation is health and therefore lack or low access to a sanitation system
depicts the appalling state of health conditions in Uganda’s urban centers.
Recommendations.
Formulation of Financial strategy for sewerage services in urban
areas.
Upscale sewerage services through infrastructure development
in all urban areas of Uganda
Extend the Sanitation grant to all urban areas to extend
sewerage services where NWSC cannot afford.
undefined
Urban electricity supply
As part of the GoU privatization policy to attract foreign direct capital under
electricity generation subsector, the operations of UEDCL in urban & semi-urban
areas except off-grid stations were concessioned to Umeme Ltd in 2005 for 20
years under Lease and assignment agreement.
The study investigated the share of the urban population using reliable electricity
(with available electricity connection at home or relying primarily on electricity
for lighting).
Cities
Access to electricity (% of population) in
Uganda was reported at 
42.07% in 2020
,
according to world bank collection of
development indicators & also the national
connection rate for urban areas was at 42%.
Access to electricity in Uganda was reported
at 
57% where 19% on national grid & 38%
off-grid including solar power
, (budget
speech FY 2022/2023).
Kampala had the highest at 86% while Arua
and Gulu had the least at 14%.  Averagely
the connection rate within cities stood at
38.2% which is quite low for this level of
urban development.
undefined
Urban electricity supply..
M
unicipalities
T
he situation in municipalities is
slightly better than that of cities
with an average of 
43.8
%.
W
orst performing MCs were Kumi
and Nebbi (below 16%), however
MCs within the 
GKMA had the
highest
 connection rate (above
60%).
 Town Councils.
T
otal average connection rate for
town council was 
27.9% far below
the national average (42%).
The least connection rate was
observed in Dokolo and Packwach
as less than 12% while Kasangati and
Busiu recorded the highest at 59%
and 45% respectively
.
undefined
Urban electricity supply...
Key issues.
Lack of network coverage and access.
low-capacity infrastructure that is
unable to cope-up with the electricity
distribution requirements, inability to
create sufficient demand to consume
electricity.
Non-expansion and refurbishment of
distribution infrastructure.
High investment costs from the
predominantly private sector
(resulting in affordability challenges)
and quality assurance challenges
associated with infrastructural
development projects.
Use of other energy sources
especially solar energy (considered to
be cheaper) has posed great
competition to urban electricity
supply.
Conclusion
The limited connection rates
within Uganda’s urban areas
indicates that the populace cannot
use electricity to spearhead
development yet this is not only
critical for economic & industrial
development
Recommendations.
Improve access and utilization
of electricity in urban areas,
especially to economic zones
and other productive areas.
Build new transmission lines to
evacuate power and urban
electrification programs be
accelerated
undefined
Urban ICT
Telephone and optical fiber networks are managed by state and private owned
utilities. (NITA-U and MTN, Airtel plus others).
The study investigated the share of the urban population that owns mobile phones
and computers, and internet usage.
Internet Usage
I
nternet usage was at a merger 
17.4%
within urban areas.
Central regions had the highest
percentage of population above 10
years that used the internet services at
23.3%, followed by eastern region
18.3%, northern 14.7% while the
western region was the lowest with
13.2%.
MC
s had a higher percentage coverage
(22.8%) as compared to TCs & cities
with 24% and 17.3% respectively.  
The
low coverage in cities may be
attributed to the annexed areas which
are predominantly rural with limited
access to internet services.
undefined
Urban ICT..
Ownership of 
Mobile Phones
Use of mobile phones was significantly
increasing across all regions.  Central
region recorded the highest with
65.6%, followed by Western 53.6%,
Eastern with 52.3% while northern
region had 45%.
Other than the northern region, the
rest of the regions were either equal
or above the national average of 52.9%.
I
n terms of urban levels, municipalities
recorded the highest with 56.3%
followed by cities with 53.5% and town
councils with 49%.
There is a noticeable disparity
between ownership of a device (52.9%)
and usage of internet services (17.4%).
This implies that either many do not
have smart phones or the cost of
internet services is unaffordable by
majority of the urban population.
undefined
Urban ICT…
Ownership of computers
Ownership of computers in Uganda’s urban
areas was significantly low across all regions
with a national average of 8.1%.  
The central
region recorded the highest with 12%,
followed by Eastern 7.3% while Western and
Northern recorded 6.3% and 6.7%
respectively.  Other than the central region,
the rest of the regions were below the
national average.
M
unicipalities recorded the highest with
9.8% followed by cities with 8.8% and town
councils with 5.8%.
It was noted that there were more people
with phones than those with computers,
because:
It is cheaper to buy a phone than a
computer.
With the advent of smartphones which
perform the same functions as
computers to a greater extent, many
prefer a phone to a computer as a way
of cutting cost but also versatility.
undefined
Urban ICT....
Conclusion
Though ICT is a national priority, its usage is still very low to
bring meaningful development in this sector. Vision 2040
highlights the need to increase access to the national grid to
80%.
 
L
ooking at the current situation, government needs
ICT performance by 73.7% in the next 18 years so as to
realize its target.
Recommendations.
Ensure increased access and usage of ICT equipment and
devices in urban centers in order to improve service
delivery, employment and social transformation.
Government should invest in providing internet services
within central areas like markets and taxi parks
Subsidize
 internet provision so as to reduce data costs and increase
usage and consumption of internet services
 
SOCIAL SERVICES
 
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Education Services
 
Ownership
Averagely government owned education facilities account for
42%
Cities - 53%
Municipalities – 35%
Town councils - 38%
 Low figures point to a big gap in accessibility and usability
especially among the urban poor
Education Services…
 
Affordability
Averagely only 59.4% of the urban population could afford the
cost of education
Municipalities and cities were higher - 65%
Town councils - 41.7%
 At a regional level – more or less the same
Education services are unaffordable to many of the urban
poor
Education Services…
 
Accessibility
Averagely only 58.2%  of the urban
population could access education
facilities
Cities - 69.2%
Municipalities – 46.7%
Town councils – 58.7%
Northern region - 70%, western region
- 66.6%, central -57.5% and eastern -
52%.
Though education facilities are
accessible to most of the urban
population, many cant afford them
hence the disparity between
accessibility and affordability especially
in the east and central regions.
Education Services…
 
Range of service
Averagely -  2.67kms  which
is within the recommended
standards of 0.5 – 3 kms.
The lowest distances are
within cities with an average
distance of 2kms, town
councils with 2.5kms while
municipalities stand at
3.5kms.
At a regional level, the
central region had the
shortest distance covered at
1.5 km 
while the 
northern
(4km)
, 
eastern (3.5km
), and
western (2.5km).
The northern and eastern
regions were above the
national average of 2.67km.
 
Challenges / Issues
High level of teacher and
student absenteeism
Weak school-level
management structures
Inadequate availability of
learning materials
Large class sizes – (40+
Average pupil-to-teacher
ratio)
Poor physical infrastructure
High cost of quality education
that prepares students to
meet the demanding needs of
society versus poverty
Declining Gov’t Expenditure
on Education. 2.5% GDP spent
on education (versus >5%
target); ~8% of the national
budget in 2020 (versus >20%
target)
 
Health services
Health Services
 
Ownership
Averagely government
owned education facilities
account for 51.2%
Cities - 
53.3%
Municipalities – 53.3%
Town councils - 47%
 the northern region had
more (60%) government
facilities while the western
region had the least (47.9%)
 
Affordability Of Health
Facilities
National average - 69.9%.
Cities - the highest (70%),
as opposed to 61.7% for
town councils.
At a regional level, the
northern region recorded
the highest at 81.3%
followed by 
western region
at 67.5%
 and 
eastern region
was the least with 53.3%.
The low levels of
affordability can be
attributed to the increased
poverty levels with in the
urban areas
Health Services…
Range of health facilities
Average distance - 3.9km
in order to access a health
facility which is within the
recommended standards
of 5 kms.
 
Cities cover slightly
shorter distances at 3.5km
compared to 
4.1km
 and
4.38km
 for 
municipalities
and 
town councils
respectively.
At a regional level,
western region had the
shortest distance covered
at 3.5kms while the
northern (4.5km), eastern
(4.38km) were all above
the national average of
3.9km.
 
Access to health services
National average level of access  - 66.2% of the urban population access
health services.
City level (73%), municipalities and town councils recorded more or
less the same performance at 62.5% and 63.0% respectively.
The northern region had the highest at 87.0%, western region at 75%,
eastern at 55% and the central region at 57.5%.
It
 
is evident that though health facilities are accessible to most of the
urban population, many are unable to afford them hence the disparity
between accessibility and affordability
Health Services…
Health Services…
 
Challenges / Issues
Understaffing which has caused a heavy workload for
health workers.
Poor working conditions for health workers
characterized by poor staff accommodation,
congested working space, low pay but high risks
leading to absenteeism.
Low capacity of health infrastructure leading to
overcrowding and poor quality service delivery.
 
Inadequate financial resource input.
High cost of health services
 
MORTALITY
 
Child mortality rate (2020) - 
43.351
 deaths per 1,000 live births (United
Nations Projects), a 
3.12% 
decline from 2019.
In poverty-stricken areas where most urban poor reside, malnutrition,
poor air quality, and limited access to healthcare cause the development
and dispersion of pneumonia among a population. Children are
vulnerable and quickly become victims of the illness.
 Urban survey (2022) -  on average 43.8 deaths per 1,000 live deaths in
urban areas.
Cities recorded the highest followed by town councils with 
50 and 45
deaths per 1,000 live births respectively while the least rate was
recorded in municipal councils at 
36.3
 
deaths per 1,000 live births.
The relatively higher rate in cities can be partly attributed to the
annexing of areas predominantly rural with limited access to health
facilities.
Child Mortality
 
At the regional level, the 
highest mortality (above the national
average) was recorded in the eastern region
, followed by the
central and northern regions at 48.3 
while the least was
recorded in the 
western region at 47.5 deaths 
per 1,000 live
births
Child Mortality…
 
The maternal mortality rate dropped from 
438 deaths per
100,000 
births in 2011 to 
368 deaths per 100,000
 
births in 
2021
(UBOS, March 2021).
This drop reflects a steady decline, which began from 2000
onwards though this is still far above the global average of  
152
deaths per 100,000 live births
 
in 2020.
The national average mortality rate stands at 
425 deaths per
100,000 births 
with 
town councils accounting for the highest
rate at 525 deaths
 followed by 
municipalities with 500 deaths
while 
cities had the least with 250 deaths per 100,000 births
The trend of rates from town council to city can partly be
attributed to the limited number of health facilities and level of
services offered at that level as compared to cities as provided
for by the health policy.
Maternal Mortality…
 
INSTITUTIONAL  AND
GOVERNANCE
 
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Overview:
 
GoU adopted a decentralized system of governance, the
policy is anchored in the 1995 constitution, the LG act
CAP 243 and other policy initiatives
Following the above policy and legal framework, LGs were
established and provided with extensive service delivery
responsibilities.
Decentralized powers are; Political, Administrative,
Finance, Planning, Legislative & Judicial.
The structure of the urban LGs provides highest-level LGs
as Cities (10)/Districts, followed by Municipal LGs (31) and,
Municipal Divisions (89) and Town Councils (583). Below
the LLG are Administrative units including; Ward/Parish
Councils and Cell/Village Councils.
Urban LGs have service delivery responsibilities in areas
such as; health, education, water, transport, and
environmental management as described in the 2
nd
schedule of the LG act cap 243
Local independence and
participation in urban development
and management
Council Composition in Urban LGs
 
Section 10 of the LG act was amended to provide for more representation of female
councilors. This has led to increment in in the number of women councilors; e.g.
Hoima City 7M, 7F( 50%F),  Masaka City 7M, 9F (56% F), Kitgum TC 12 M 9F (42% F).
Overall, 49% of councils are represented by between 5-10, most evident in Town
Councils (TCs) where 71% of the TCs have between 5 to 10 councilors.
The urban authorities with most representation was found in the Central region as
50% of councils in Central region were represented by between 21 to 40 councilors
while 17% had representation of between 41 to 80 councilors ( Nansana 97, Kira 95).
The least representation of female councilors was observed in the Northern and
Western Uganda, 71% of urban councils in the two regions had less than 10 female
councilors.
Challenges of Councils/ Recommendations
 
Low academic qualifications which affects
the quality of deliberation, comprehension
and participation in Council activities;
Inadequate appreciation of council
procedures because Most of the councilors
save for the AF- USMID beneficiary LGs
had not been inducted.
facilitating the increased number of
councilors. For e.g. Nansana MC the
number increased from 53 in 2015 to 95
Councilors 2021.
MoLG should expedite induction of
councilors in the country.
Forms of citizen participation in urban LGs.
Participation during planning,
budgeting, implementation
and monitoring of council
programs
The legal system provides for a
bottom up participatory
planning and budgeting
In all MCs and cities all
respondents confirmed
participation in physical
planning & budget conferences
More participation was
observed in western Uganda
(100%) while the least
participation was in central
Uganda (46%)
Forms of citizen participation in urban LGs…
Participation in urban
development forums
Uganda adopted the urban
forum concept in 2010 – which
culminated into establishment
of MDFs that were adopted in
all USMID supported LGs
Arising from the above, all
cities have established MDF
while 3/10 of Mc and none of
the TCs has established MDFs
All urban authorities in western
Uganda had established MDF
compared to 33 of urban LGs in
central
 
Local Government
Financing
Revenue Generation
Article 191 and section 80(i) mandates LGs to collect certain types
of taxes
The main source of revenue in urban LGs is property taxes averagely
contributing to 24%, followed by the planning fees (23%) and business
licenses and LST (12%)
The least local revenue collections is from hotel taxes and (8%) and
market dues.
Contribution of local revenue to the
total budget
The PFM reform strategy sets a national target for the percentage of lg
own source revenue for urban LGs at 30% of their budget
Only 29% of the urban councils had attained this required target
Many urban authorities (35%) were contributing between 0 to 10%
TC comparatively had better performance (50%) while the least
performance was observed among cities with 36% contributing 0 – 10%
Challenges
 
Inadequate support to LGs on local
revenue enhancement
Lack of updated and automated tax payer
registers
Limited awareness and application of legal
framework
Absence of policies to manage large and
high informal sector
Little coverage of IRAS
Challenges in utilization of OSR system in
an effective and efficient manner
Recommendations
 
LGFC should fast-track IRAS roll out
Introduction of technological
innovations e.g. GIS to locate property
Strengthen collaboration among the
stakeholders in collection, management
and administration of OSR
Harmonize local revenue collection in
urban authorities
Refine the local revenue laws
Local revenue budget realization
Urban authorities were averagely collection 2/3 of their budgeted
local revenue
The best local revenue realization was observed in the cities
(81.6%) while the least realization was observed in TCs (58%)
Urban authorities in central had comparatively better local
revenue realization (95%) while north had the least realization
(57%)
Challenges & recommendations
 
Inadequate capacity in budgeting
among lg staff
Unrealistic budgeting and poor local
revenue collections practices affect
budget implementation and effective
service delivery
There is a need to support LGs in
budgeting to ensure more accurate
forecasting of their local revenue
abilities
 
HUMAN RESOURCE
Staffing status in urban LGs
Staffing is based on an approved structure
At the time of the survey, all staff in all cities (except the town clerks) were all in
acting positions
Overall 69% of the staff position in the urban authorities were filled
Urban authorities in central and western Uganda had comparatively more staff
position filled up (85%) while northern had the least filled up positions (57%)
Challenges, implications &
recommendations
 
Inadequacies in staffing affect the efficiency and
effectiveness of LG service delivery
The available wage bills are inadequate
There is need for reviewing the terms of service in
LGs’ civil service to attract and retain staff
Reviewing LG structure to allow for career
progression
Mops to support cities to customize the approved
structure
The cg should increase the wage bill to enable LGs
fill more positions
There in a need to revise the structure of the LGs
in greater Kampala metropolitan area to match
with the service delivery requirements.
 
RECURRENT EXPENDITURES
Wages
 
Overall, urban authorities
were spending 38% of their
budget on wages
MCs were comparatively
spending more on wages
(45%) while the TC were
spending least o
n wages
(30%)
More than half of the urban
authorities were spending
more than 50% on wages
Urban authorities in eastern
Uganda were comparatively
spending more of their
budget on wages (50%) while
north was spending least
(30%)
Operation and maintenance
Overall, urban authorities spent 18% of their budgets on O&M
Tc were spending most on O&M (30%), all cities were spending
less than 10% of their budgets on O&M
Urban authorities in central were spending comparatively more
on O&M (
55%) 
while  urban authorities in eastern Uganda
averagely spent 
5% 
of their budget on O&M
Challenges of O&M
 
High demand and preference for new
facilities without adequately
maintaining of the old facilities;
Limited resources for undertaking
operation and maintenance especially in
the Cities and some Municipal Councils
Poor attitude of some communities
coupled with limited awareness on
O&M by the various stakeholders.
Recommendation on O&M challenges
 
There is need for continuous advocacy and
awareness on O&M at all levels;
Local Governments should have a
comprehensive  budgets and plans for O&M,
effectively involve all the stakeholders
especially user committees/ communities at
all stages of the implementation with
adequate and timely feedback;
LGs should formulate ordinances/Bye-laws
related to O&M for ensuring sustainability;
We need to establish a rewarding mechanism
or system for communities that excel in O&M
e.g. by providing additional funding for new
facilities.
Contracted expenditure ratio
Urban authorities averagely spent 
55% 
of their budget on contracted
recurrent expenses
MCs were comparatively spending more on contracted recurrent
expenditures (37%) while the TCs were spending the least (25%)
Urban authorities in eastern Uganda were spending the most on
contracted recurrent expenditure 
(38%) 
while authorities in western
Uganda were spending the least 
(25%
Functionality of MDF in Urban setting
 
MDF are 100% fully constituted and functional
in AF-USMID funded urban LGs i.e. all cities
and some MCs;
MDF have improved on the service delivery as
they engage the communities on behalf of
councils;
Town Councils have not yet established the
Town  Development forums which act as a
platform for broad based consultation with the
community.
It is recommended that the MDFs are
streamlined in the LG management with
supportive legal and policies that will ensure
that all LGs are required to establish these
MDF with clear cut scope of work.
 
 
General Recommendations and Way
forward
Inclusive urban planning and financing;
Land consolidation and land banking;
 
Support and strengthen Local Economic development
initiatives;
Well-serviced socio-economic infrastructure
development;
Encourage sustainable development through proper land
use planning and management;
Promote environmental conservation and protection;
Design and implement integrated refugee settlements:
Strengthen urban 
and territorial systems to be able to
respond to rapid population movements;
Benchmark on best practices for solid waste
management
;
Support the implementation and enforcement of Physical
development plans
;
 
4/2/2024
 
GIPEA AFRICA LIMITED
 
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Thanks for listening
 
4/2/2024
 
GIPEA AFRICA LIMITED
 
158
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The report on the state of the urban sector in Uganda for 2022 outlines the challenges and opportunities arising from rapid urbanization. The goal is to inform policy interventions by identifying development issues, assessing governance strengths and weaknesses, and proposing sector strategies. The scope includes stakeholder engagement in various cities, municipalities, and town councils to analyze and report on Uganda's urban environment.

  • Urban Development
  • Uganda
  • Rapid Urbanization
  • Policy Interventions
  • Stakeholder Engagement

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  1. THE STATE OF THE URBAN SECTOR REPORT FOR UGANDA, 2022 FINAL REPORT Presented during the MLHUD Dissemination Workshop

  2. Outline Introduction and background Client s Requirements Methodology Thematic Reports 4/2/2024 GIPEA AFRICA LIMITED 2

  3. Introduction Urban areas are the engines of economic growth & development functioning ( employment, education, technology & knowledge transfer and markets). The primarily challenge of urban development is uncontrolled rapid urbanization (projection: 70% of the world s population will live in cities by 2040). Uganda is also rapidly urbanizing at about 5.2% p.a with 583 TC, 31 MC, 11 Cities. This study was aimed at understanding the current state of urbanization in Uganda so as to inform Policy and other strategic government and private sector interventions. GIPEA AFRICA LIMITED 3

  4. The Goal To produce through a participatory process the state of Urban Development sector report for Uganda 2022. Specific Objectives: Identify the key urban development issues/challenges, potentials/opportunities, and needs and provide information on appropriate implementation Identify institutional and policy strengths and weaknesses in the governance of urban areas and suggest areas for reform Identify and critically analyze the state of urban development Produce a detailed report of the sector strategies for 4/2/2024 4

  5. Scope of work Develop data collection tool (adapted from the UN-HABITAT) Engage stakeholders 11 Cities 10 Municipalities 10Town Councils Analysis the existing situation looking at different thematic areas Write a report on the state of urban environment in Uganda 4/2/2024 GIPEA AFRICA LIMITED 5

  6. Selected urban councils for the study Northern Central Regions Eastern Western Cities Arua Gulu Lira Kitgum Nebbi Kampala Masaka Mbale Jinja Soroti Tororo Iganga Mbarara Hoima Fort Portal Ntungamu Busheny- Ishaka Kira Nansana Municipali ties Kumi Makindye Sssabagabo Luwero Kasangati Kalisizo Mpigi Apac Pader Dokolo Pachwach Buwenge Busiu Nakaloke Pallisa Isingiro Kamwenge Kyenjojo Kihihi Town Councils Aduku Katabi GIPEA AFRICA LIMITED Budaka Kagadi 4/2/2024 6

  7. Approach and Methodology 1 3 2 4 5 Stakeholder engagements Inception Mobilizing team and resources Data collection tool Formulatio n Literature review on the different thematic areas Stakeholder mapping National State of Urban Developme nt report 2022 Data analysis and report writing MDAs TPC of Urban Councils MDF There is limited data on the urban sector in Uganda. Information herein was based on 2014 Census data, some statistics and estimates from sampled ULG Some indicators within the tool could not be handled because of the unavailability of data 4/2/2024 GIPEA AFRICA LIMITED 7

  8. THEMATIC REPORTS 4/2/2024 GIPEA AFRICA LIMITED 8

  9. URBANISATION IN UGANDA 4/2/2024 GIPEA AFRICA LIMITED 9

  10. Overview Uganda has a population base of 35 million and a high population growth rate of 3.2% - one of the fastest- growing populations in Africa (Un-Habitat 2016 2021). Also experiences rapid urban population growth rate - % of the population living in urban areas increased from 12.3% in 2002 to 18.6% in 2014 which reflects an annual urban GR of 5.2% and the level of urbanization Uganda will increase to 50% by 2050 (UBOS 2014). Other Urban Areas 18% Kampala 4% Rural Areas 78% in

  11. THE URBAN SECTOR AS A CATALYST FOR NATIONAL DEVELOPMENT SOCIO- ECONOMIC TRANSFORMATION Government prioritizes sustainable development of the urban sector as the engine for the country s economic growth and to provide high quality of life The sector offers real economic opportunities; about 70% average contribution to the GDP of the Country (NUP). Poverty level is 7% lower in urban areas compared to 19% in rural areas (NUP). If well planned and effectively managed, will result in a competitive and productive sector to stimulate socio- economic growth Benefits of agglomeration which enhances access to services Plays a dual role as a producer and consumer. Market for goods and services both internally generated and from rural areas The target is to attain the Country s Vision 2040 of Middle Income Status if urbanization is harnessed properly 4/2/2024 GIPEA AFRICA LIMITED 11

  12. Urbanization Trends in Uganda Pre-colonial Before 1890, societies in Uganda were organized around tribal kingdoms and it is from these that early urban centres in the country were initiated for administration and public service Kampala Mengo Fort Portal Kabarole Hoima Bunyoro Mbarara Kamukuzi/Ankole, and Bugembe Jinja, Etc End of the 19th century Colonial (1900 1962) Era 1900-1962 was for settlement stabilization, fixation and pseudo-planning by the British and defined Uganda s urban spatial and development pattern Creation of large and medium urban centers as central points of administration, and commerce towards the capital and other world ports. (jinja, Tororo, Mbale) 4/2/2024 GIPEA AFRICA LIMITED 12

  13. Urbanization Trends in Uganda Post-colonial Concentrated and polarized pattern, with the major towns of Kampala and Jinja dominating was consolidated. Medium sized centres functioning as 'intermediary centres and regional headquarters continued to expand Small centers developed more as district administration centres or as administration centres for counties and sub counties; Military State (1970-1980) & 'Changing' Urban Composition Ideology for the military Ugandanization was declared in 1972 that created magendo economy Period of changing urban land uses, environmental decline and growth of the urban informal sector, as well as growing urban poverty Between 1970-1980 - stagnation of the larger centres, the 'stumbling' of some medium centres and the shooting up of smaller centres Creation of administrative provinces which later became main urban centres regime of self-reliance and 4/2/2024 GIPEA AFRICA LIMITED 13

  14. Urbanization Trends in Uganda Period of laissez faire and urban informality (1986 2004) From 1986 2004 - adoption of more liberal economic policies in the pursuit of economic growth after two decades of political turmoil and economic collapse. In the face of central government resource constraints, the changes in internal boundaries and subsequent creation of districts resulted into a gradual evolution of small rural service centres into government recognized urban centres, without any semblance of urbanity. Age of urban renaissance 2005- to-date Urban Policy to control & manage the Country's high urban growth Policy of decentralization; political control of urban areas and the electorate, planning and managing urban areas Supportive policies; National Land Policy, National Land Use Policy, Housing policy, National Environment Management Policy, LED policy, National Population Policy, PPP policy, Slum Upgrading Strategy, etc. Creation of Ministry responsible for Urban Development; Ministry of Local Government - for urban administration and supervision 4/2/2024 GIPEA AFRICA LIMITED 14

  15. Current urbanization trends Population living in urban areas increased from 12.3% in 2002 to 18.6% in 2014 which reflects an annual urban growth rate of 5.2% - among the highest in the world Kampala accounts for 39.6% of the total urban population (2002 Census) however this reduced to 20.3% as the number of urban centres in the country increased proliferation of urban areas By 2035 Uganda s population is projected to 68.4 million of which 30% will be in urban areas Urban Year Rural Total %in urban areas 2002* 2003 2004 2005 2006 2007 2008 2009 2010 2011 2014* 2015 2016 2,999,387 3,091,400 3,247,000 3,410,500 3,582,200 3,762,600 4,372,000 4,524,600 4,692,200 4,859,600 7,425,864 7,759,918 8,109,030 21,442,697 21,998,000 22,612,700 23,330,800 24,047,100 24,818,700 25,220,600 26,136,700 27,092,400 28,080,200 27,208,786 27,883,006 24,442,084 25,089,400 25,859,700 26,741,300 27,629,300 28,581,300 29,592,600 30,661,300 31,784,600 32,939,800 34,634,650 35,648,924 12.3 12.3 12.6 12.8 13 13.2 14.8 14.8 14.8 14.8 21.4 21.8 22.1 4/2/2024 28,586,231 GIPEA AFRICA LIMITED 36,695,261 15

  16. Colonial & post-colonial Urbanization Trends; The country currently has 11 cities 31 Municipalities and 583 Town Councils Urban Centre Populati on as per NUP 1969 1980 1991 2002 2014 2021 No Popn. No. Popn. No. Popn. No. Popn Capital City Cities - 1 1 774,241 1 1,189,142 1 1,507,080 1 1,917,427 at least 300,000 between 50,000 and 299,000 between 10,000 and 50,000 - - 0 0 0 10 1,948,598 Municip alities - 2 13 480,922 13 745,036 33 3,249,609 31 4,134,478 Town Councils - 34 33 338,901 61 1,065,209 163 2,361,033 583 3,003,942 Town Board Total - 4 20 75,589 20 - 62 308,142 - - 41 67 1,669,653 95 2,999,387 259 7,425,864 625 9,447,927

  17. Viability of Ugandas Urban Councils City Criterion for Cities set in NUP 2017 Min. Population Size (300,000 People) Sq.Kms) budget) 1,428,455 195.1 206,115 364.6 93,054 128.3 89,028 228.1 201,371 471.5 108,916 30.1 247,074 215.6 254,915 160.3 308,362 403.1 222,558 387.3 199,602 299.0 Qualifica tion of cities as per the NUP 2017 set criterion Min. Population Density (3,000) Min. Area (100 Functionality (% local revenue to the Appr oved PDP X X X X X X X X X X Built-up area (%) Qualificati on 1 2 3 4 5 6 7 8 9 10 11 Kampala Masaka Fort portal Hoima Mbarara Soroti Jinja Mbale Arua Gulu Lira 7,321.7 565.3 725.3 390.3 427.1 3,618.5 1,146.0 1,590.2 765.0 574.6 667.6 15.6 3.1 6.1 4.7 8.3 5.5 17.0 3.7 51.0 2.6 7.1 76.91 2.53 4.28 3.83 2.93 6.35 9.83 10.87 3.74 4.44 4.44 X X X X X X X X X X Using the urban Policy criteria, all cities in Uganda save Kampala, do not qualify to be cities but upgrading was rather based on administrative arrangement. With NUP set density, only Kampala and Soroti meet the minimum requirement for city status while Masaka, Hoima, Mbarara and Gulu fall way below the threshold Only Kampala and Arua cities meet the minimum requirement under the population threshold while Soroti, Hoima, Fort portal and Lira are far below the threshold. All cities meet the minimum requirement for area however some cities like Masaka, Lira, Gulu, Arua and Mbarara are too big which makes them lose out on other parameters like density. The bigger percentage of these cities, other than Kampala (76.9%), is typically rural (have less than 10% built up coverage except Jinja and Mbale who stand at 10%) which places a big financial burden in service provision to populace that doesn t generate the requisite revenue. All had no approved PDPs except Kampala. Fort Portal, Jinja, Masaka and Hoima cities are in the process of preparing new PDPs while Jinja, Arua and Gulu have their PDPs on deposit. A functional urban council should be able to locally raise at least 50% of its budget but only Arua meets this requirement

  18. Viability of Uganda Urban Councils... Municipa lity Size (80,000 People) Nansana 365,124 1,227.3 Makindye Ssabagabo Kira 317,157 3,288.6 Bushenyi 41,217 456.4 Ntungamo 18,719 367.5 Tororo 42,016 1,359.7 Iganga 55,263 7,675.4 Kumi 36,493 392.4 Kitgum 44,604 1506.9 Nebbi 31,883 589.3 No . Criterion set in NUP 2017 Min. Popn Density (1,600) Sq.Kms) Qualification of Municipalities as per the NUP 2017 set criterion Min.Popn Min. Area (80 Builutp area % Functionality based on local revenue 50%) Appro ved PDP Qualificatio n 1 2 297.5 84.9 6.72 63.2 15.5 9.9 x x 283,272 3,336.5 3 4 5 6 7 8 9 10 96.44 90.3 50.93 30.9 7.2 93.01 29.6 54.1 72.49 1.65 4.44 8.97 72.53 3.03 33.66 1.00 26.4 4.8 2.3 7.8 8.2 5.4 2.8 9.0 x x x x x x x x x The expansion and upgrading of municipalities in Uganda does not follow any systematic criteria but rather selective application which must be corrected. Densities of some municipalities are way above those of cities e.g. Iganga, Kira, Makindye Ssabagabo and Nansana while some are way below the threshold (in Nebbi, Kumi, Ntungamo and Bushenyi. By population criteria, Nansana, Makindye Ssabagabo and Kira would qualify for city status while some would qualify to be TCs. Ntungamo does not even qualify for TC status but rather TB. Based on the minimum area criteria, Iganga MLG would not even qualify for TC status. Only Kira, Bushenyi, Makindye Ssabagabo and Kumi MLGs would qualify to be MLGs using the minimum area criteria. Other than Kumi, all the selected MLGs in the study had approved PDPs. The functionality criterion requires an urban council to be able to locally contribute at least 50% of its budget but none of the MLGs meets this requirement. Ntungamo municipality was the worst performer with only 2.5% locally raised revenue

  19. Viability of Uganda Urban Councils No.Town Council Size (20,000 People) (1,000) 1 Kalisizo 13,981 855.6 2 Kasangati 125,715 1,266.0 3 Kihihi 19,812 397.0 4 Kyenjojo 22,960 238.6 5 Kamwenge 19,286 282.4 6 Busiu 16,632 1,033.0 7 Buwenge 22,126 2,410.2 8 Aduku 7,715 287.9 9 Pakwach 23,040 1,036.9 10 Dokolo 20,135 224.2 Qualific ation Criterion set in NUP 2017 Min. Popn Density Area (20 Sq.Kms) 16.34 99.3 49.9 96.22 68.3 16.1 9.18 26.8 22.22 89.8 Qualificati on of Town Councils as per the NUP 2017 set criterion Min. Popn Min. Built up (%) Functionality based on local revenue 50%) Approve d PDP 6.3 55.4 1.23 1 1.9 2.7 11.8 0.7 1.4 0.7 - No No No No No No No No No No Yes No No No No No No Yes Yes Yes 58.8 11.9 36.5 41.1 36.4 15.3 35.6 19.6 25.4 None of the town councils meets the NUP criteria for TC status. In terms of population size, Kasangati, Kyenjojo, Buwenge, pakwach and Dokolo meet the policy requirements. However, Dokolo TC was the outlier under this criterion. Using the density criteria, Kasangati, Busiu, Buwenge and Pakwach would qualify for TC status but Dokolo, Aduku, Kamwenge, Kyenjojo and Kihihi are outlyers with very low densities Using the minimum area criteria, Kasangati, Kyenjojo, Kamwenge and Dokolo are way above the threshold (above 90 sq kms) which is above the requirement for TC save for Kamwenge. On the other hand, Buwenge was way below the threshold for the minimum area requirement. Using the PDP requirement, Kalisizo, Pakwach and Dokolo would qualify for TC status.

  20. Urban Sector Challenges Mismatch between the policy requirements and the capacity of the urban councils to meet the set requirements Urban growth that is un-planned, with high rates of sprawl and unplanned growth, lack of integration between sectoral and spatial planning, inadequate provision of basic services, weak urban management capacity and significant fiscal constraints Urban youth dependency is large, while the urban working age population remains relatively small hence many urban center now have large numbers of unemployed youth. Urban footprints growing faster than urban population, the physical extent of urban areas in Uganda is growing much faster than their population. This has profound implications for energy consumption, greenhouse gas emissions, climate change and environmental degradation. Climate change: an enduring threat to cities. Urban areas are both the source of the majority of the world s carbon emissions and home to the majority of the country s population that will be the victims of climate change. Shortfall in Funding for Urban Development. Affordable and adequate housing - still an illusion for many; Deteriorating Urban Environment Inadequate Urban Infrastructure and Services 4/2/2024 GIPEA AFRICA LIMITED 20

  21. Government fundamentals for strengthening the urban Sector New Urban Agenda (NUA) and 2030 Agenda for Sustainable Development (SDGs); Vision 2040 identifies fundamentals to harness the opportunities from urbanization; NDP III prioritizes urbanization and urban development as very critical for accelerating socio-economic transformation with the following objectives; NPDP defines the pattern of human settlement; Albertine PDP strategies that are critical to the Uganda's urbanisation process; National Transport Master Plan (2020-2040) strategies that are critical to the Uganda's urbanisation process; Expressway Development Master Plan 2020-2070 strategies for Uganda's urbanisation process; Master Plan on Logistics in the Northern Economic Corridor is focused on implementing a number of strategies that are critical to the Uganda's urbanisation process; National Urban Policy review to bridge the gap between the set standards and the situation on ground. Invest in nation-wide integrated economic and spatial planning. Invest in city-wide development and infrastructure plans. Support urban physical planning and urban systems development 4/2/2024 GIPEA AFRICA LIMITED 21

  22. LAND TENURE 4/2/2024 GIPEA AFRICA LIMITED 22

  23. Land tenure regime in Uganda A well-functioning urban area is contingent upon secure and enforceable rights over land and property Land Act recognizes four classes of land tenure: o Freehold - the holding of registered land in perpetuity or for a period less than perpetuity that may be fixed by a condition o Leasehold - tenure that is created either by contract or by operation of law between two parties , o Mailo - holding of registered land in perpetuity. All its characteristics are exactly the same as freehold tenure. Mainly in Central Uganda and Bunyoro o Customary - predominant mode of access right in Uganda, mainly in eastern and northern regions 4/2/2024 GIPEA AFRICA LIMITED 23

  24. Land tenure regime in Uganda Freehold was most dominant in western region at 34%, mailo in central with 40%, leasehold in central at 23%, customary was highest in eastern with 54% Customary tenure was the most dominant in all regions save central Region Freehold Mailo Lease Custom ary North 32% 0% 19% 48% East 20% 0% 20% 54% West 34% 4% 13% 45% Central 27% 40% 23% 7% Type of Urban Land Tenure Type Customary land tenure was the most dominant in cities (33%), Municipalities (40%) and Town Councils (38%). Free hold was most dominant in TCs at 33% and least dominant at city level (19%). Leasehold was most dominant in cities with 30% coverage Free hold Mail o Leas e Custom ary Cities 19% 14% 30% 33% Municipal ities 25% 15% 14% 40% Town 33% 4% 14% 38% 4/2/2024 Councils GIPEA AFRICA LIMITED 24

  25. Land Tenure Challenges Challenges for planned urban development and management Land Tenure system Mailo Tenure Land The security of occupancy by the lawful and bona fide tenants creates a dual system of property ownership which results in conflicting interests and overlaps in rights on the same piece of land creating land use deadlock between the registered landowners and the tenants resulting into conflicts and, in many cases, evictions. The non-eviction provisions in the law protect the lawful and bona fide tenants from eviction which compounds the complexity of urban planning in Uganda. It is difficult to streamline informal settlements through the regularization of tenure since physical planning is not a ground for compulsory acquisition under Article 26 of the constitution The unplanned, disorganized settlement patterns on mailo land have had a significant effect on the development of an efficient land market in the central region. Households with weaker property rights invest less in housing quality than those with stronger property rights, thereby establishing a causal link between this land tenure system and the development of slums

  26. Land Tenure Challenges Land Tenure system Customary Land Tenure Challenges for planned urban development and management Provides for communal ownership and use of land (person, a family or a traditional institution) in perpetuity. Majority of people may own or have the rights to use land, but they do not have land titles (security of tenure) Obtaining a private certificate of title by individuals is possible but lengthy and cumbersome involving prior agreements with owners such as the community, the clan, and then the respective land boards take up the process of issuing the title. Holder of a certificate of customary ownership may convert his/her holding to freehold (Section 9). However, the option to convert has exacerbated conflicts over land as the elite and speculative purchasers of land especially in the mineral and oil-rich areas have acquired huge pieces of land without the consent of the community in the pretext that it is free land A customary Tenure Registry is non-existent, the process of titling is long and expensive. Customary tenure restricts accessibility to land and therefore affects planning and orderly development. Tenure impedes implementation of PDPs hence the low levels of PDP implementation where this tenure prevails

  27. Government interventions on tenure security Government through MOLHUD has created 21 Regional Land Office (cadaster zonal areas) in order to ease access to land services Development of the Land Information System (LIS) that commenced in 2010 (at Ministry Zonal Offices (MZOs), Surveys Department, the National Land Information Centre and Ministry Headquarters) aimed at establishing an efficient land administration system in Uganda. Central region has nearly all (98.04%) the land registered in comparison to other regions (50%) The Northern region has not had most of its land registered (8%) because of its reliance on the customary system. The complexity of tenure comes into play as over 60% of urban dwellers in Uganda are informal settlers on land (LANDnet Uganda 2017). and Mapping Location of Cadastral sheets that have been fully covered

  28. Strategies for land tenure harmonization & regulation Urban land use planning as a path to land tenure regularization; Tenure Responsive Land Use Planning (TR-LUP) at all stages i.e. planning and implementation. Incorporate tenure responsive LUP with other planning and land management tools and approaches; MoLHUD pilot successes on tenure security through Physical Planning and Systematic Land Adjudication and Certification in the nine (9) Refugee Host Districts (RHDs) since 2019 should be upscaled to other areas. Institutional responsibility and capacity for tenure responsive land-use planning; Enhance capacity and address resource constraints of planning authorities; Improving coordination; Strengthening urban coordination; Local knowledge is key; Avail resources for relocation; and Making urban development and planning a priority. Awareness creation development stakeholders 4/2/2024 GIPEA AFRICA LIMITED 28

  29. SPATIAL PLANNING 4/2/2024 GIPEA AFRICA LIMITED 29

  30. Overview Assessment of this sector was based on PDPs and Detailed plans looking at preparation, implementation and Development Control. The development control function seeks to manage and regulate property development to ensure that all development takes place in conformity with the detailed schemes. In the absence of physical plans, decisions are made entirely at the discretion of the physical planner evaluating a development proposal. This leads to inconsistency in decision making and uncertainty in the minds of developers leading to urban informality.

  31. Availability of PDPs 45% of urban councils had PDPs. Majority of MCs (80%) had PDPs while only 27% of cities had PDPs. PDPs for Gulu, Fort Portal and Jinja were still in draft form. Most cities still used old MC PDPs. 71% of TCs had no PDPs due to meager resources. Central region had the highest share of PDPs at 71% while Western had the lowest with 37%. 100% 80 80% 71 60 60% 48 45 40% 29 27 20 Yes No 20% 0% 80% 71 63 60 57 60% 43 40 38 40% 29 YES NO 20% 0%

  32. Coverage of Detailed Plans Coverage of Detailed Plans Total area coverage under detailed physical plans was very small - only 10%. Urban areas with detailed plans, most did not cover the the entire boundary. 10 8 6 4 urban council 2 0 Cities MC TC Average Absence of detailed plans resulted into growing levels of informality and haphazard growth. Cities and MCs had area coverage of 10% while TCs had 5%. Majority of urban councils save for cities, their level of coverage was between 1 and 30%. TCs - the available detailed plans were mainly work done by students on internship. Cities and MCs had detailed physical plans prepared in the early sixties and no significant effort to review them

  33. Coverage of Detailed Plans Regional Coverage of Detailed Plans 12% 10 10 10% 8% 6 6% 4 4% 2% 0% North East West Central Central region had the least coverage of detailed plans with only 4% followed by the Western region with 6%.Yet, these two regions have the largest percentage of built-up area (hence the informality). Central region with the highest number of urban councils had the least coverage of detailed plans. Central Govt needs to develop a policy or assessment parameters that would drive the preparation and implementation of detailed physical plans in urban areas.

  34. Availability of 5 Year Development Plans 90 78 75 25% 22% 10% CITIES MUNICIPALS TOWN COUNCILS Yes No Majority of urban councils (81%) had 5 year development plans. MCs recorded the highest share with 5 YR Devt Plans at 90%. Cities recorded 78% while TCs had the lowest at 75%. Arua and Gulu cities did not have 5 Yr Devt Plans. Many cities were in the process of developing the said plans. Lack of a 5 Yr devt plans attracts a penalty during the annual performance assessment by OPM hence hinders service delivery.

  35. Availability of 5 Year Development Plans 100 86 80 57 43% 20% 14% 0% NORTH EAST WEST CENTRAL YES NO Western region had the best performance as all urban councils had a 5 Yr devt plans at 100%. Most urban councils in the Northern region lacked the 5 Yr devt plans (43%). The poor performance of 57% was attributed to lack of 5 Yr devt plans by Arua and Gulu and Dokolo TC among others.

  36. Implementation of PDPs and DPS Implementation of PDPs 60% implemented between 0 to 40% of their PDPs. Almost two-thirds of urban councils implemented than 40% of their PDPs. This implies low levels of implementation of PDPs in urban areas. of urban councils 80% 60% less 40% 20% 0% 0 to 40 41 to 70 71 to 100 Majority of MCs at 33% implemented between 11 to 20%. Majority of TCs at 48% implemented between 0 to 10%. Overall, implementation of PDPs in Uganda s urban areas is only at 10%. Most PDPs expired before they were implemented. Low levels of implementation were attributed to; complex land tenure system which makes land acquisition very costly. Inadequate funding and non-prioritization of physical planning activities Weak institutional and enforcement capacity and urban poverty.

  37. Source of Funding for Spatial Planning Source of funding for spatial plans 67 67 63 70 60 50 40 40 37 33 33 40 30 20 20 10 0 0 0 0 West Central North East Local Revenue Central Government Donor Funding Central region use locally raised revenue to fund their PDPs at 67%. North region depended on central government funding at 63%. Eastern region depended on donor funding (67%). Western region depended equally on central government and donor funding both contributing 40% each. Central Government should balance its efforts in other regions for equitable and balanced urban development.

  38. Source of Funding for Spatial Planning Cities depended more on donor funding at 87% than Central Govt funding at only 13% (USMID funded while at MC level). Local revenue was the major source of funding for the MCs at 50% with Central Govt and donor community at 25% each. MCs had more capacity of generating local revenue and were good at prioritization of physical planning. Central Government was the major source of funding for TCs at 67% and local revenue at 33%. Central Govt should prioritize town councils because of their inability to generate adequate local revenue. MCs have demonstrated a good practice of using locally raised revenue in funding PDPs.

  39. Implications The absence of PDPs has resulted into substantial growth of unplanned settlements that lack infrastructure and services. Un-guided concentration in the urban core leading to squatter settlements and dispersion due to sprawl in the urban periphery. Significant urban expansion with developments taking place along major transportation routes, forming ribbon developments and scattered settlements. Lack of access to basic infrastructure and services which are only limited within the CBD and the surrounding areas. Provision of infrastructure and facilities has not matched with the pace of urban growth. Urban development pattern is un-sustainable and renders service provision very costly.

  40. Spatial Planning Challenges Weak governance and institutional framework 10% of TCs had no established PPCs (MoLHUD, 2016). Limited human resources and skills for enforcement of PDPs 25% of TCs had no Physical Planner as Land Officers were in control (MoLHUD, 2016). Limited funding & low prioritization of urban planning 27% of TCs had no budgetary allocation in FY 2013/14 (MoLHUD, 2016). Lack of awareness of available PDPs and roles of each stakeholder 70% of TCs do not carry out sensitization (MoLHUD, 2016). Proposed and existing rights of way, service areas and no development zones are not demarcated for easy enforcement hence encroachment. Poor coordination among planning authorities and infrastructure & utility provision agencies and parastatals. Costly and time consuming processes of preparing PDPs Most Urban Authorities continue to rely on external consultants due to limited capacity and this has a high cost implication. Political interference and competing interests & needs of the political organs of Councils.

  41. Recommendations MoLUD should establish a Physical Planning Fund to support implementation of key and major physical planning proposals in terms of land use and public infrastructure and utilities Expand the coverage of detailed physical plans in urban authorities so as to ensure orderly urban development. Prioritize formulation of urban action area plans for upgrading and promoting vitality of already developed areas. Undertake effective integration of urban physical plans with economic development plans, sector plans and works plans. Provision of public infrastructure and utilities such as road network and public facilities as a strategic tool to lead and induce desired orderly and sustainable developments, (World Bank Report, 2018). Physical demarcation of proposed infrastructural routes, service areas and no- development zones should be undertaken to avoid present and future encroachment. Partner with private real estate developers to pilot innovations in developing planned neighbourhoods or site & serviced areas. Explore and establish sustainable financing options for implementing and enforcing urban physical development plans.

  42. HOUSING 4/2/2024 GIPEA AFRICA LIMITED 42

  43. Overview of Urban Housing The current housing requirement is about 767,000 units, presenting a critical shortage of 54,400 units in Uganda s urban areas. About 70% of the urban population stays in informal settlements, of which 20% reside in typical slums There is a major shortage of decent and affordable rental housing forcing low income population into low quality and squatter settlements in city centers close to jobs. Uganda s urban population will grow from 11 million in 2022 to 20 million in 2035 raising the housing demand to 1.4 million units - a total increase in housing needed of 48,700 units per annum. Housing market is faced with high mortgage interest rates which increase the cost of borrowing leading to high cost of housing.

  44. Urban Housing Demand Year Estimated Population 2014 7,400,000 2022 11,043,000 2035 20,000,000 Number of housing stock required is about 1.4 million units by 2035, of which 285,600 would be required for Kampala alone and 331,800 in Central Region. Additional 633,000 units will have to be build between now and 2035 (about 48,700 units per year). Estimated Housing Demand 514,000 676,000 1,400,000

  45. Urban Housing Demand Urban Household Incomes Issue: Incomes are low and informal for most urban households to afford a house. A household purchasing a low-cost house of Ushs 72 million (US$ 20,000) would need to earn at least Ugx 2,862,011 (US$ 800) a month to afford it, paying a monthly installment of Ugx 1,001,704, represents 35% of the monthly income at an interest rate of 16%. This implies that 89% of the Uganda s urban households could not qualify for mortgage to afford a low-cost house of Ugx 72 million due to low incomes. Household Income 3,321,001 and Above 4 Less than 276,750 2,214,001 3,321,000 7 276,7551 553,500 1,107,001 2,214,000 20 553,501 1,107,000 553,501 1,107,000 31 1,107,001 2,214,000 2,214,001 3,321,000 276,7551 553,500 30 3,321,001 and Above Less than 276,750 8 0 5 10 15 20 25 30 35

  46. Urban Housing Demand Housing Finance Issue: Interest rates are high limiting access to housing finance The interest rate for mortgages ranges from 16 to 20% per annum with a repayment period of up to 20 years. Uganda currently has a total value of Ugx 1.6 billion (US$ 429,166) in residential mortgage loans collectively held by financial institutions. The interest on mortgage loans has still remained relatively high at about 17%. The mortgage market in Uganda accounted for only 1% of the GDP. An urban household with an average monthly income of Ugx 703,000 could afford a mortgage of Ugx 18 million (US$ 5,000) at an interest rate of 16% amortized for 20 years with a monthly repayment of 35% of the monthly income.

  47. Urban Housing Demand Urban Rental Housing Issue: Rental housing is more affordable and accessible though of low quality. Rental housing is growing at a higher rate due to un- affordability of own house ownership. 48% of urban households were renting. The average household monthly rent is Ugx 263,500 ($74) for both formal and informal rentals. For an urban household earning the average monthly income of Ugx 703,000, this amounts to 37.5% of monthly expenditure on house rent, above the maximum 30% expenditure standard. Hence, most urban households staying in rented housing were facing un-affordable house rents.

  48. Urban Housing Demand Monthly House Rent 321,200 46 Urban Councils Share Spent on Rent (%) Status Cities Struggling Municipals 284,700 40 Struggling Town C 184,900 26 Affordable Region Level North 205,730 29 Affordable East 247,400 35 Struggling West 322,920 46 Struggling Central 351,560 50 Severely Cost- Burdened

  49. Supply of Urban Housing Main Issue: Poor Conditions & Inadequate Formal Supply of Housing. Quality of Urban Housing Issue: About 70% of urban households live in informal settlements, of which 20% stay in typical slums There is still shortage of decent and affordable rental dwellings which doesn t match with urban population growth. Growing conversion of owner-occupied houses into rental accommodation increases the share of rental housing.

  50. Supply of Urban Housing 90 60 80 50 70 40 60 City Municipalities Town councils 30 Owner occupier 50 Rented 40 20 Social housing 30 10 20 0 10 Owner occupier Rented Social housing 0 North East West Central Cities had about 50% of households renting, followed by town councils and municipals at 47.5% and 41 respectively. Kampala had the highest percentage of renting households at 72%. Municipalities and town councils had a high demand for land for construction of individual dwellings (owner-occupiers) resulting in low-density areas. Central region had the highest share of renting households with 46% due to high concentration of Uganda s urban population

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