President Yoweri Museveni has signed the Valuation Act, 2025, into law, establishing strict regulatory standards for Uganda’s real estate sector and setting penalties of up to 100 million Shillings or imprisonment for valuers who misrepresent property information or operate without proper licensing.
The law, passed alongside the Building Control (Amendment) Act and the Mortgage Refinance Institutions Act, aims to professionalize the property valuation industry while safeguarding the public and investors from unscrupulous practices that have plagued the market for years.
Alozius Gonza, former president of the Institution of Surveyors of Uganda, hailed the legislation as long overdue, noting that gaps in regulation have cost both private investors and government billions of Shillings. “People have lost billions,” he said, describing the act as a critical milestone for Uganda’s financial, infrastructure, and real estate sectors.
The Valuation Act establishes the Institute of Certified Valuers of Uganda, a statutory body tasked with licensing, registering, and monitoring valuers nationwide. It also strengthens the office of the chief government valuer, responsible for overseeing public property valuations and ensuring fair compensation during infrastructure projects.
Industry analysts say the legislation will reduce malpractice in the property sector, particularly unfair tax assessments and manipulation of property values during loan applications. Previously, some borrowers faced significant losses when property valuations fluctuated between loan approval and foreclosure.
The Mortgage Refinance Institutions Act, passed alongside the valuation law, empowers the Bank of Uganda to regulate mortgage financing, expand access to long-term credit, and encourage investment in housing—a key step toward addressing the country’s housing deficit.
Meanwhile, the updated Building Control Act introduces penalties for illegal construction, including fines and jail terms of up to 12 years. District building committees are now authorized to demolish structures that fail to meet safety standards, reinforcing accountability at the local level.
Lawyer Richard Masereje described the reforms as a major boost for market transparency and investor confidence, emphasizing that they provide the ethical framework and risk mitigation necessary to support a growing real estate market and attract sustainable financial lending.
