No Subsidies, High Loans: National Housing Quits Affordable Homes for Govt Contracts

NHCC says low-cost homes no longer a viable business

National Housing and Construction Company Limited (NHCC) has revealed plans to scale down construction of low-cost housing and focus on government projects, citing high borrowing costs and lack of subsidies, yet being required to operate under the same bureaucratic regime as other state enterprises.

The revelation was made by Kenneth Kaijuka, Chief Executive Officer of NHCC, while appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on October 8, 2026, to respond to queries in the December 2025 Auditor General’s report.

“I want to consider and bring sad news that the aspect of housing, as a company in the current circumstances, where you have no incentives, you buy land, you borrow expensively, you buy materials from the market, as a business, we are scaling down on residential housing, and we are scaling up on construction. Part of the profitability you are seeing in the subsequent you will be seeing, it is coming from projects,” Kaijuka said.

He was responding to concerns by Buzaaya County MP Martin Muzaale about delayed completion of projects, citing Naalya estates which started in 2011 but remain incomplete despite bookings by Ugandans.

“You started construction on that site around 2011, I wanted also to book, but since then, I see construction ongoing. We need to understand the project cost, the project timelines because when you ask them to book for these apartments and it is stretched for a long period when it is not complete, business wise, it is not good. When you start a project, the timelines are this and you are able to finish it in time. Otherwise, since you are in business and people realise that you are not efficient when it comes to your timelines, you lose out on value,” Muzaale said.

Bamunanika County MP Robert Ssekitoleko questioned why a government-backed company sells houses at the same rate as private players.

“Even the National Housing itself, they are constructing very expensive houses, which group of Ugandans are you serving? Because when you see your houses, Naalya it is for billions, Bugoloobi and other areas, Namungoona, they are so expensive. So, as we are injecting in that money, we expect at least subsidised houses for at least a minimum Ugandan. That one is very demoralising and that is why many Ugandans hear National Housing as an entity maybe for the rich,” Ssekitoleko said.

Similar concerns were raised by Moroto Woman MP Stella Atyang, who said NHCC is mandated to build low-cost houses to improve Uganda’s image but its houses are unaffordable for ordinary Ugandans. She wondered why NHCC does not partner with the private sector to build affordable houses as is done in Kenya.

“We as a government expected that such a corporation would actually construct affordable houses for any ordinary Ugandan to afford. We have slums in the country that we think such entities like yours can help us to actually change the picture of housing. What are your plans in terms of that?” she asked.

Kira Municipality MP George Musisi asked what interventions NHCC has put in place to enable young Ugandans aged 25 to 40 to acquire low-cost houses within 30 kilometres of Kampala payable over 10 to 15 years.

“What direct interventions can we take or have you taken? A person who is between 25 to 40 years, how do I get a low-cost house within 30 kilometres of Kampala and I pay back within 10 to 15 years? Because if I get it from a private company, a purely private company, it would be very expensive, so how can National Housing meet that?” Musisi asked.

Kaijuka defended the shift, saying it followed an appeal to President Museveni that it was unfair for NHCC, created as government’s construction company, to compete for the same construction jobs with government yet its operations are not understood by other state entities.

“And His Excellency said to be procured directly. This instrument we received two years ago, let ministries, departments and agencies, also in the circumstances that actually other people will not also procure you, procure National Housing directly. What that is doing is that we are risking the financing element. If a ministry has money and they have a project to undertake, we shall do it at almost that cost. But to make sure that it is done in time so that we are not borrowing to build,” Kaijuka said.

Meanwhile, National Housing came under further scrutiny over stalled projects, with MPs questioning why the company borrowed Shs200 billion to finance a project valued at Shs29.8 billion.

“Interestingly, there is this aspect of Bugolobi apartments, a commercial block worth Shs52.6, then the Naalya condominium apartments, that project of Shs29.83 billion, which by the time of audit, the Auditor General reports, it was at 24% completion, yet it was meant to be completed in 2024. Why do you borrow Shs200 billion when the project is Shs29.83bn?” Muwada Nkunyingi, COSASE Chairperson, asked.

The Auditor General also faulted NHCC for not involving the Government Chief Valuer in renting out properties contrary to guidelines, and for awarding contracts worth Shs201 million using single sourcing instead of competitive methods, occasioning lack of transparency.

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