Museveni Drops the Hammer on Illegal Builders, New Law Means Heavy Fines and Jail Time!

President Yoweri Museveni has signed into law three key pieces of legislation set to reshape the country’s construction, housing finance and property valuation sectors.

The newly assented laws the Building Control (Amendment) Act, 2025, the Mortgage Refinance Institutions Act, 2025, and the Valuation Act, 2025 introduce sweeping reforms aimed at strengthening regulatory oversight, enhancing accountability and promoting professionalism in the real estate industry.

The signing ceremony, held at State House, marks a significant milestone in the government’s ongoing efforts to streamline urban development and improve access to affordable housing.

Under the Building Control (Amendment) Act, 2025, authorities have been granted enhanced powers to crack down on illegal construction and non compliant developments.

The law introduces tougher penalties for individuals and developers who undertake construction projects without proper approvals or in violation of building standards.

Officials say the amendments are intended to curb the rising cases of unsafe structures and building collapses, particularly in fast-growing urban centres.

Government sources indicate that the revised framework will also strengthen coordination between local authorities and national regulatory bodies to ensure adherence to safety standards and approved building plans.

The Mortgage Refinance Institutions Act, 2025, on the other hand, empowers the Bank of Uganda to regulate and supervise mortgage refinance institutions.

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This move is expected to deepen the country’s housing finance market by providing a clear legal framework for institutions that provide long-term funding to primary mortgage lenders.

By placing mortgage refinance institutions under the oversight of the central bank, the government aims to enhance financial stability, boost investor confidence and lower the cost of mortgage financing.

Analysts say the reform could play a crucial role in expanding access to home loans, particularly for middle-income earners seeking affordable housing solutions.

Meanwhile, the Valuation Act, 2025, establishes the Institute of Certified Valuers, a professional body tasked with regulating valuation practice in the country.

The new institute will be responsible for setting standards, licensing practitioners, and enforcing ethical conduct among valuers.

Stakeholders in the real estate sector have long called for stronger regulation of property valuation, citing inconsistencies and disputes arising from unregulated practice.

The establishment of the Institute of Certified Valuers is expected to enhance transparency, credibility, and professionalism in land and property transactions.

Industry players have welcomed the trio of laws, noting that they address longstanding gaps in the regulatory framework governing construction and property markets.

They argue that clearer rules and stronger enforcement mechanisms will protect consumers, safeguard investments and promote orderly urban growth.

With the assent of the three Acts, attention now turns to implementation, as regulatory agencies move to operationalize the new provisions and ensure that the intended reforms translate into tangible improvements on the ground.