The undercapitalization of National Housing and Construction Company Limited (NHCCL) is contributing to Uganda’s high housing deficit, the Auditor General has revealed.
According to the NHCCL Strategic Plan, 2018 – 2022, the country has a national housing shortage estimated at 1.6 million housing units.
In his 2023/2024 report presented to Parliament recently, Edward Akol, the Auditor General, says to produce mass and affordable housing, NHCCL resolved to capitalize the company to a tune of Shs231.5Bn through a rights issue, in which the Government of Uganda (GoU) would contribute Shs118Bn.
“In the year under review, the government allocated only Shs.30Bn (25%) of the expected GoU contribution. As a result of the undercapitalization of the NHCCL, only 1,474 (2.12%) out of the planned 69,288 units were constructed during the strategic plan period,” Akol says in his report.
He says NHCCL management stated that the matter of undercapitalization had been brought to the attention of Parliament which recommended budget provision.
“In addition, engagements with MoFPED were ongoing to secure the necessary funds for housing,” the report says.
The Auditor General advised the Accounting Officer to continue engaging the relevant stakeholders for increased funding to undertake housing projects to reduce housing shortage in the country.
Sustainable Development Goal (SDG) 11 aims to make cities and human settlements inclusive, safe, resilient, and sustainable. The SDG emphasizes the urgent need for a comprehensive approach to urban housing crisis, including providing varied housing options and equitable access to basic services.
In Uganda, NHCCL is a key institution tasked with implementing housing development programs in the country.
