Government Moves to Take Full Control of NHCC in Shs398 Billion Deal

Uganda Seeks Shs398 Billion to Buy Out Libya Shares in National Housing Company

The Chairperson of the Parliamentary Committee on Lands, Housing and Urban Development, MP Xavier Ssemuwanga (Buyamba County), has presented the Sectoral Budget Framework for FY 2026/2027 before Parliament’s Budget Committee, which includes, among other allocations, a Shs398 billion proposal to enable government fully take over the National Housing and Construction Company (NHCC).

While appearing before the Parliamentary Committee on Budget, chaired by, Patrick Opolot Isiagi MP Kachumbala County, Ssemuwanga told lawmakers that Shs310 billion of the proposed funding is intended to buy out Libya’s shareholding in NHCC, allowing the Government of Uganda to assume 100 percent ownership of the company.

“National Housing is making profits, yet the Government of Libya is absent. We want those profits to be fully retained by the Government of Uganda,” Ssemuwanga said.

According to the committee, the remaining Shs88 billion would be used for capitalisation of the company, aimed at expanding the provision of affordable housing and narrowing Uganda’s housing deficit.

However, members of the Budget Committee questioned the lack of documented profit schedules and dividend records remitted to government. Ssemuwanga acknowledged that the committee had not presented the schedules but pledged to submit them at a later date.

MPs Raise Valuation and Profitability Concerns

Lawmakers expressed concern over the valuation of NHCC and the justification for buying back shares that were initially granted to Libya as part of a historical debt swap during the 1986 liberation war.

It was explained that Libya acquired shares in NHCC as compensation for financial support extended to the NRM government during the war. Government now intends to clear that obligation by buying back the shares.

“We need a clear valuation. We cannot pay for shares blindly,” Patrick Opolot Isiagi chairperson budget one cautioned, calling the proposal “a complex matter” that requires a well-articulated business case, including revenue projections and long-term returns on investment.

The lands committee Chairperson ,Xavier Ssemuwanga noted that the estimated net worth of NHCC stands at about Shs890 billion, although detailed valuation reports are yet to be shared with Parliament.

The Budget Committee advised government to undertake further due diligence, valuation, and structured negotiations before Parliament can recommend approval of the funding.

Shs970 Billion Land Titling Programme Proposed

Beyond housing, the Lands Committee also proposed a nationwide land adjudication and titling programme, estimated to cost Shs970 billion over five years.

The programme, to be implemented through a village-based model, aims to issue land titles across all four regions of the country at no direct cost to beneficiaries.

“If only 30 percent of registered land is titled, government can generate over Shs1 trillion,” Ssemuwanga argued.

However, MPs questioned the feasibility of the rollout, citing past resistance in some communities where survey teams were mistaken for land grabbers.

Currently, only Shs32 billion has been allocated to the programme in the upcoming financial year, leaving a funding gap of Shs162 billion, which the committee is seeking to fill.

Some MPs urged government to first demonstrate the impact of the Shs32 billion allocation before committing additional resources.

Parliament Yet to Decide

The Budget Committee resolved that both the NHCC buyout proposal and the land titling programme require further scrutiny before recommendations can be made.

“This is a huge investment. Government must dig deeper, provide valuations, and justify the returns,” the committee chair noted.

Deliberations on the Lands sector budget are expected to continue as Parliament considers the FY 2026/2027 national budget framework.