Uganda’s construction industry at crossroads

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OPINION

By Moses Mabala

Uganda’s construction and real estate sector, seen as a pillar of economic transformation, is now facing some sort of credibility crisis. The sector, which employs thousands and attracts significant investment from both local and diaspora Ugandans, is being crippled by fraud, professional negligence, weak enforcement of laws, and widespread lack of regulation.

Stakeholders say that unless urgent reforms are implemented, the sector risks sliding into deeper dysfunction, with dire consequences for housing and investor confidence.

Fraud and middlemen taking over

A key concern is the increasing infiltration of the sector by unqualified middlemen and fraudsters posing as construction experts. These individuals often use flashy online portfolios filled with stolen or manipulated images/videos to win contracts from unsuspecting clients.

“There is no official platform to verify whether a contractor is genuine or not,” says James Kamutere, a Ugandan based in the UK who abandoned his building plans after being defrauded by a self-proclaimed engineer. “Everything looks professional online, but by the time you realise you’ve been conned, it’s too late.”

This is despite the Building Control Act, 2013, which mandates that all construction work be undertaken by registered professionals under the supervision of Building Committees at district and urban authority levels.

Professionals also under scrutiny

Even certified professionals have not escaped criticism. Many clients allege that some engineers reuse generic building plans across different projects, showing little regard for innovation or client specifications. Others reportedly abandon sites after securing contracts, leaving day-to-day supervision to foremen.

Without proper oversight, these foremen often mismanage materials, mix concrete in incorrect proportions, and even steal materials from the site. The result is substandard construction that fails basic safety and durability tests. “The engineer is never on site. You end up with a foreman calling the shots,” says Maria Magezi, a property developer in Wakiso. “It’s frustrating, and there’s no accountability.”

Flawed Financial Planning

Another major issue affecting clients is the inaccuracy of Bills of Quantities (BOQs). Experts say some engineers provide estimates that either inflate figures or exclude critical cost items. This makes it difficult for clients to budget properly, leading to stalling of construction projects when funds run out.

Additionally, there is no standard pricing or measurement system for common building materials such as sand, concrete, aggregates and stones. Some suppliers sell by trip, others by tons, resulting in inconsistencies and potential exploitation. “There’s no benchmark,” says a Kampala-based quantity surveyor. “What one supplier calls a trip, another calls a half load, but the prices are the same.”

Unregulated service providers and rampant vandalism

The situation is made worse by the absence of any umbrella body or associations to regulate tradespeople such as plumbers, electricians, masons, painters and welders, etc. Clients who experience poor workmanship or fraud have no avenue for redress.

Cases of vandalism, particularly the theft of newly installed water and electricity meters, are also on the rise in new housing estates. Many residents are now asking: Who is buying these stolen items, and why is enforcement so lax?

Gaps in implementation of Building Control Act

The Uganda Building Control Act, 2013, provides a strong legal framework for regulating construction. It requires that building plans be approved by qualified professionals, prohibits unauthorised works, and mandates inspections during and after construction. However, stakeholders argue that the law is poorly implemented.

Most local government Building Committees are understaffed or are overwhelmed by growing demand for construction services. As a result, many buildings go up without proper supervision.

What Uganda can learn from other countries

To address these persistent challenges, Uganda can draw on best practices from more structured real estate markets:

Create a Central Registry of Accredited Professionals: Countries like Singapore and Germany have national databases of licensed builders, engineers, interior specialists, welders, painters, plumbers, etc. A similar registry in Uganda, maintained by a national building Review Board or the Ministry of Housing, would offer investors a verified pool of experts to choose from.

Enforce Licensing and Compliance: All developers and construction companies should be required to obtain operating licenses, with mandatory inspections and penalties for non-compliance. Kenya’s National Construction Authority is one example Uganda can emulate.

Introduce Construction Escrow Accounts: To protect clients from fraud, some countries require that payments for construction projects go into escrow accounts, only accessible upon satisfactory completion of milestones. This reduces financial exposure to fraudsters.

Establish Fast-Track Arbitration Panels: Instead of dragging cases through the courts, Uganda could set up a specialised tribunal to handle construction-related disputes swiftly, protecting both investors and professionals.

Mandatory Digital Verification and Project Tracking: Real estate listings, project portfolios, and contractor credentials should be linked to a government-managed digital platform that verifies and tracks real-time progress. This limits the spread of fake online advertising.

Professional Ethics and Certification Programs: Construction workers and site supervisors should be subjected to continuous professional development, similar to the Continuing Education Credits required in Canada and the United States.

Call to action

The construction industry remains one of Uganda’s most important sectors. It creates jobs, fuels demand for local materials, and is central to achieving Uganda’s Vision 2040 and urbanisation agenda. However, without robust oversight and regulation, the sector risks slow growth under its own inefficiencies.

It is now imperative for the National Building Review Board, the Ministry of Works and Transport, and other relevant institutions at the local government level to fully enforce the provisions of the Building Control Act. Proper monitoring, accountability, and professional discipline must be prioritised.

As Uganda’s cities expand and more Ugandans invest in real estate, especially from the diaspora, there must be assurances that their money is protected and their buildings are safe. A credible, professional, and transparent construction sector is not just an economic goal; it is a national necessity.

The writer is inspired by real experience