About Uganda
Some of the members setting up a demo unit with the products they make
History of Cooperative Housing in Uganda
Uganda’s housing cooperative movement began to take shape in the early 1990s. A key moment came in 1991 when the Uganda National Workshop on Housing, Construction, and Building Material Co-operatives took place in Mukono. The workshop aimed to explore whether cooperative models could increase housing production, promote the use of local materials, and generate employment.
Before this, some multipurpose cooperatives—such as Kataayi Cooperative—constructed a few housing units for members. However, these co-ops were not formally registered as housing cooperatives and focused mainly on agriculture and finance.
After independence in 1962, housing cooperatives received little to no government support. Successive regimes ignored the sector. Even the current government, which took power in 1986, failed to prioritize cooperative housing initially.
Revival Through International Partnership
In 2008, the Swedish Cooperative Centre (now We Effect) partnered with the Ugandan government to revive housing cooperatives, particularly for low-income earners. Together, they launched the Housing Cooperative Development Project (HCDP), hosted by the Uganda Cooperative Alliance (UCA). The project aimed to mobilize low-income communities, form new housing cooperatives, and help them realize their right to adequate housing.
Since its inception, HCDP has helped establish 14 housing cooperatives in the Central Region and 3 in the Eastern Region. Public awareness campaigns and community outreach have supported this growth.
Uganda’s Housing and Demographic Challenges
Uganda’s rapid population growth compounds its housing crisis. The population grew by nearly 4% in 2010 and was projected to reach 45 million by 2020. In 2012, 56% of the population was under 18 years old.
Urbanization is also accelerating. In 2012, 5 million Ugandans (14% of the population) lived in urban areas—up from 0.8 million in 1980. UN-Habitat reports that 93% of Uganda’s urban population lives in slums.
The Ministry of Lands, Housing and Urban Development reports a housing deficit of 720,000 units, with only 20,000 to 30,000 new units built annually. This creates an annual shortfall of 120,000 units. Projections estimate an 8 million unit housing deficit by 2040, with 2.5 million in urban areas alone.
Financial and Legal Barriers
Most Ugandans face serious financial obstacles to housing. In 2009–2010, 25% of the population lived below the poverty line. The Uganda Human Settlement Network reports that 62.3% of households lack access to financial services. Of those with access, only 0.62% qualify for mortgage loans.
Uganda’s government does not directly fund housing cooperatives. Most rely on member savings. The revised National Housing Policy now recognizes cooperative housing as a tool to tackle the housing deficit. Revisions to the Land Act aim to make land more accessible to housing cooperatives by stabilizing prices and simplifying titling.
Institutional Support and Capacity Building
Despite limited resources, housing cooperatives benefit from several support mechanisms:
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HCDP offers capacity building, advocacy, and technical assistance.
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MoLHUD helps with land acquisition, surveying, titling, and construction.
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The Ministry of Trade, Industry and Cooperatives supports legal registration and monitors compliance.
Current Status of Housing Cooperatives
Although no units have been completed yet, four cooperatives have purchased land, and two have finalized construction plans. Characteristics of Ugandan housing cooperatives include:
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Ownership Model: Members own their units; cooperatives own the land and common spaces.
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Low-Income Focus: Members typically live in slums or informal settlements and seek affordable alternatives.
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Geographic Clustering: Co-ops usually form among people from the same locality, particularly in the Central Region.
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Democratic Governance: Members elect leaders, vote equally, and manage activities collectively.
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Size: The largest co-op has 157 members; the average is 40 members.
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Self-Management: Most co-ops are run by volunteers from within the membership.
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Savings-Based Financing: Financing depends on member savings, but saving capacity remains low.
Financing Challenges
External financing remains limited due to the early stage of most cooperatives. Land is expensive and difficult to title—both major hurdles for securing loans. High-interest mortgage products do not cater to cooperatives. No bank or financial institution currently offers construction loans tailored for co-ops.
Legal Framework for Housing Cooperatives
Uganda has several laws that affect cooperative housing:
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Co-operative Act (1991): Governs cooperative operations.
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National Co-operative Policy (2011): Promotes cooperative expansion and improved governance.
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Land Act (1998): Under review to improve land access.
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National Housing Policy: Now explicitly supports housing cooperatives.
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Condominium Property Act (2001): Encourages high-density housing.
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Mortgage Act (2009): Outlines group mortgage acquisition.
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National Environment Act (1995): Supports sustainable building practices.
The Cooperative Housing Movement in Uganda
The Uganda Cooperative Alliance (UCA), founded in 1961, serves as the national apex body for all cooperatives, including housing. Under UCA, the HCDP oversees development and operations of primary housing cooperatives.
A new umbrella body—the Uganda Housing Cooperative Union (UHOCU)—is forming to coordinate member activities, lobby for policy support, and oversee growth.
Key partners include:
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We Effect: Provides funding and technical support.
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UHSNET (Uganda Human Settlement Network): Advocates for housing policy reforms.
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MoLHUD and Ministry of Trade, Industry and Cooperatives: Offer technical and legal support.
Conclusion
Uganda’s cooperative housing movement is still in its early stages. While progress has been slow due to financial and legal constraints, ongoing policy reforms, NGO support, and community efforts are laying the groundwork for future expansion. Housing cooperatives offer a promising model to address Uganda’s severe housing shortfall—especially for low-income earners shut out of traditional housing markets.
A demo unit constructed by members of the PHCs using the interlocking blocks and the roofing tiles that they make
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