Namuganza faults Finance Ministry over new taxes on construction materials

What the report says

State Minister for Housing Persis Namuganza has criticised Uganda’s Ministry of Finance over new taxes on construction materials, saying the measures will push up building costs and make it harder to deliver affordable housing. According to Nile Post, she raised the issue while appearing before the Parliamentary Committee on Lands, Housing and Urban Development, chaired by Jinja District Woman MP Peace Tibyaze.

Namuganza argued that the taxes, introduced in the 2026/2027 financial year, come at a difficult time for the housing sector, which she said is already under pressure from a shortage of affordable homes. She said the higher costs would also make home ownership less accessible to ordinary Ugandans. In the same meeting, she also faulted the housing sector’s limited budget allocation, saying insufficient funding has slowed programmes such as mass housing and slum upgrading.

She called for a meeting involving Parliament’s lands committee, the Ministry of Housing, the Ministry of Finance and President Yoweri Museveni to discuss the challenges facing the sector. The report also says committee members and ministry officials discussed the value of looking at Morocco’s housing policies as a possible model for Uganda.

The broader issue matters because housing costs, public funding and tax policy can directly affect the pace of construction and the availability of affordable homes. More generally, many countries facing urban growth and limited housing supply debate how to balance government revenue needs with measures that support construction and lower the cost of shelter.