Overcoming Challenges to Build Housing for All
Kenneth Kaijuka, CEO of National Housing and Construction Company, talks to World Business Journal about the company’s dedication to providing affordable housing across all income levels and highlights the imperative for the real estate sector to establish a national housing authority.
What projects is NHCC currently working on?
In Mbarara city, we have completed the first phase of developing 200 units; the second phase is underway. In Nalya, ongoing projects include Jasmine Apartments, 60 units, and Nalya Pride Apartments, 502 multi-bedroom units. Our portfolio also includes commercial projects like the state-of-the-art Electoral Commission headquarters in Lweza, Lubowa, pending construction due to funding constraints. To manage water infrastructure costs in our estates, we’ve forged a ten-year collaboration with the National Water and Sewerage Corporation while actively developing the National Building Research Center in Lubowa to uphold the highest construction standards and address issues like substandard materials.
What barriers exist in the effort to promote affordable housing?
Multiple challenges hinder the development of affordable housing projects, including urban and city planning obstacles such as small landholdings, family-level planning issues, lack of zoning for market categorisation, and limited skills in rural areas. High capital costs, short tenures, and demanding collateral requirements also need improvement. The lack of government guarantees, grants, and concessional funding exacerbates the affordable housing deficit, as banks and commercial lenders show little interest in financing social housing, slum redevelopment, mass housing, and low-cost housing initiatives. The housing deficit, estimated at over 2.4 million units, might only partially represent the situation; considering standards and quality, the deficit could be around 5-7 million houses. Emphasising quality and prioritising cost-effective services such as water and energy supply is vital in addressing affordability and the housing deficit.
What role can NHCC play in revitalising Uganda’s housing sector?
To revitalise the housing sector, we must strengthen our role by providing leadership in cities and municipalities and creating opportunities for other developers. A well-regulated housing sector with proper leadership is essential for infrastructure development. We should serve as the primary vehicle for investors in government housing projects, offering incentives such as land, infrastructure services, and tax waivers. Our proven leadership in areas like Bugolobi, Lubowa, Ntinda, and others demonstrates the ability to attract developers, positioning us as a leader and risk mitigator. However, the absence of this guiding role has led to challenges in identifying prime development locations. Establishing a housing authority similar to those in other East African countries could address zoning, infrastructure planning, waste management, housing quality, technology attraction, and funding. This approach would facilitate structured housing development, supporting government access to loans for sectoral growth while mitigating informal settlements and service provision challenges.
