#OutToLunch: Group savings could help young people become homeowners

By Denis Jjuuko

For most people, owning a home is the ultimate dream. It is a key component of what constitutes the American dream. In many parts of Africa, a boy only becomes a man if they owned a house.

At kwanjula (betrothment) events, you hear spokespersons of the groom to be bragging that the man who is intending to marry already owns a house, when they are mentioning his home address to which the congregation claps incessantly in wonder. It confirms, somewhat, the potential of the man to look after the bride.

But like we heard recently as the country marked the World Habitat Day, housing in Uganda is increasingly becoming a pipe dream for the majority of Ugandans. Apparently, 76% of the population won’t be able to afford to build or own a decent home. That is such a huge number. The cost of land and building materials are way too out of reach for the majority of Ugandans.

That shouldn’t be very nice for any government to hear. Home ownership is a cornerstone of stability. The biggest asset the majority of people will ever own is a home. And once they own a home, it means that they have a big stake in their country. They will do whatever it means to protect their biggest asset. So, they won’t be involved in burning down a street on which they own a home.

There is a lot government can do to ensure that this happens. Ensuring people have sustainable jobs, affordable mortgage rates, social security linked to home ownership, tax deductions on building materials etc.

However, sometimes, the government may not do all those things. They may leave individuals to do it on their own. So how can people, especially those that banks may not describe as “high net worth”, be able to afford a decent house?

Home ownership in Uganda, at least for the majority, starts with the ability to own land. Land that is affordable is usually far from urban centres without any utilities such as water and electricity. For many young people, living in such an area can be scary so they end up postponing to buy land.

By the time they have raised some money to buy land in a place that they consider livable, they are taken to the same place which was extremely rural a few years ago but it is now unaffordable to them. The places they can afford are again so rural.

However, they now have school going children which means less money at their disposal. Before they know it, it is retirement time and no house. They now hope that their children would be able to look after them. The poverty cycle continues.

How can young people afford to build and own homes affordably? At least those who earn a regular income?

They will need to come together either as friends or relatives and save money together consistently for some time. They don’t have to be so many, a maximum of about eight people. When they are too many, so many interests will come up and they may lose focus. They can consistently save money for about 3 years. If each of them saves Shs50,000 per a month, it means that that they will have Shs4.8m by the end of the first year. If they invest this money in a unit trust at about 12% annually, they will have an extra Shs576,000 after one year of investing it.

If they invest Shs400,000 every month after their initial investment of Shs4.8m, at the end of the 3-year saving cycle, they will have at least Shs16,197,120 according to an online compound interest calculator. That is why compound interest is sometimes called the 8th wonder of the world.

With Shs16.1m, the group of eight can now look for an acre of land to buy at about 15m, which they can now divide among themselves. If eight of you decide to buy land in an area you consider rural, you won’t be scared of living there because you will have the security of your neighbours.

Anyaway, each member should be able to get a 50x100ft plot in a well organised estate. With the Shs1.1m balance, they can now employ the services of an architect to design eight houses for them. The houses should look exactly the same and should be of the same size. They should not be fancy storied houses that are too expensive to build. Simple would do it. The dream is to own a home, not a Hollwood-esque home!

In the design, there are things they can share, such as septic tanks and a perimeter wall but that can come in later.

Now that they are good at saving and investing, they can double their monthly savings to Shs100,000. If they invest Shs9.6m and continue investing Shs800,000 per a month at 12% annually, they would have Shs32,394,240 by the end of 3 years. Depending on the design they choose and materials they use, they could now be able to build a house or two for every member every 3 years. In 12-24 years, each of those members will be able to own a decent mortgage free house.

The writer is a communication and visibility consult. djjuuko@gmail.com

Tags: decent mortgage free house, Denis Jjuuko, Government of Uganda ., Group savings, Out to Lunch, Prime Time Communications, World Habitat Day

Out to Lunch

#OutToLunch: Subdividing land failed homeowners, time to flip that real estate model

By Denis Jjuuko A few years ago, a friend was ecstatic. Finally, after years of toiling, working at his day job and some side hustles, he had managed to buy land somewhere in greater Kampala in one of those sprawling so-called estates where Kampala businessmen buy land and subdivide it into small plots each measuring about an eighth of an acre. It didn’t take him long before he started building one of those common three-bedroom houses with high pitched roofs. Once it was to an extent complete, he moved in after throwing a house warming party for a few friends and relatives. He considered himself middle class and liked his neighborhood. The estate in which he bought land had many undeveloped plots and every time somebody came to build, he was super excited. Soon the estate would be full of houses and therefore a little bit more secure. His property value would go up in case he wanted to sell or borrow. Then we realized he no longer talked about his house and neighborhood. We thought after living there for years, he had overgrown the excitement of being a homeowner. Maybe he had started thinking about other stuff. It is a normal thing. Then he started talking negatively about his neighborhood. The estate that drove up his adrenaline was now a source of sorrow. He was thinking of relocating. He said the estate was no longer middle class. Some of us wanted to tell him that it wasn’t middle class from the beginning but age teaches you mellowness. Anyway, each person had built whatever pleased them. A storied house there, shops on the corner plot where men first stopped for a beer before proceeding to their homes every day, an apartment block here, a nursery school there, a Pentecostal church in one corner, a charcoal seller at the top of the street, a chapatti guy next door. A guy who had bought eight plots, making about an acre, had decided to plant eucalyptus trees. Another was planning some mattooke. An “investor” had decided that the estate needed an artificial grass surface in one corner where the so-called middle class could play soccer till 10.00pm or midnight, after all, he had installed the most luminous flood lights he could find on the market. My friend’s most immediate neighbor had probably listened to many inspirational speakers and decided to build a chicken coop. He heard that the poultry keeper’s grand plan included ducks, goose and even turkeys. The chicken woke him up every 3.00am or some other time in the night. The stench from the chicken coop made sure he abandons his garden, where he used to sit on weekends with one hand holding a champagne glass and another a book. And there were still many empty plots. He didn’t know whether someone could be planning a kraal or a pigsty or a brothel. He had tried involving the local leadership but there wasn’t much help. Some of his neighbours didn’t see a problem with anyone keep some chicken. In fact, they were being praised on the neighborhood WhatsApp group for their entrepreneurial ability. Many neighborhoods in Kampala are not different. In fact, a few months ago, somebody had built a kraal in Kololo. Yes, in Kololo, Kampala’s most exclusive suburb. But the neighbors there are “deep waters” so they stopped his entrepreneurship adventure. My friend is now looking for a buyer so he could sell and go to some of those housing estates by the likes of NSSF, Mirembe Villas and Royal Palm. He had always said they were expensive and criticized them for building for “non-Ugandans” but he now agrees that there, it will be hard for somebody to practice their poultry business at home. There is some orderliness. Nobody wakes up to do what pleases them. Since Ugandans love investing in land or real estate, this could be a model that people can try especially those with some capital but for not high-end clients. I know that Buganda Kingdom and NSSF are building such estates in Ssentema but they are very few units. National Housing has land in Bukerere and NSSF in Nsimbe. These among other estates could help take away people’s misery if built affordably and provide significant returns on investment. The writer is a communication and visibility consultant. djjuuko@gmail.com

August 14, 2025

Out to Lunch

#OutToLunch: It is our turn to eat, the politicians have eaten enough

By Denis Jjuuko After nearly five years of planning, positioning, and scheming, it is time for implementation of strategies that could lead many people to their coveted offices. For some, the first hurdle is to convince their parties that they are qualified to stand for election in the primaries to represent them. To others, it is to decide whether to stand as independents and in which particular constituency. The political fever is rising across the country. At funerals, weddings, sports, religious and cultural events, candidates are aligning themselves sometimes with causes they don’t believe in while many times mudslinging others. Resources are not being spared. Unfortunately, human beings are not being spared too. Ssembabule seems to be an epicenter of violence. An incumbent even threw in the towel claiming the violence is too much. Before the ink on her words dried, a youth was shot dead! It is going to be long eight months or so. Just like it was in 2021 and in many general elections before. Usually, the news that comes out is of violence and tension leading to many people to fear. Internet is usually cut off at some stage. Some radio stations also get blocked. Tear gas becomes part of the oxygen people breathe in. But should politics be like that? Over the last few years, it has become a job. An assurance for many of those who win to earn significantly over a five-year period especially for those at the top end of politics—those who end up as Members of Parliament. They are not only paid well; the president usually appoints a significant number of them into his cabinet—an opportunity to earn even better. Maybe that is the reason it is a do or die for many candidates like we have witnessed so far in Ssembabule. Of course, many of those who stand for office won’t be elected and even many incumbents won’t win their positions back. Ugandan politics below the presidency tends to give an opportunity to a lot of new comers. They call it a ‘turn for someone else to eat.’ Issues are less discussed on what can really transform a country yet that is where we need to go. The country cannot develop if we are voting people because it is a “turn for someone else to eat.” That way you send people to elective offices who stand for nothing and therefore go wherever the wind blows. That way the country remains poor because politics is a core component of economic development. People who have no values won’t fight for anything that affects the poor. They will only be concerned about themselves and their immediate families. A few millions in their pocket, and they pass laws that lead the country to nowhere. Corruption becomes their middle name and scheming the religion they believe in. Yet the issues that affect all of us affect them too. If the road to a Kampala suburb is potholed everywhere, a politician who steals money to build a residence or rental apartments or a hotel will suffer too. He may have a government Landcruiser but for how long? His tenants or patrons could shun the apartments or the hotel because of inaccessibility. The building may end up as a white elephant. And if he is voted out, he may not have the resources to renovate it. When there are no doctors and drugs in health facilities, the politician may not have enough time to be flown to Uganda’s referral hospitals for the rich in Nairobi or New Dehli. At the end of the day, stolen money at the expense of public services won’t be able to save him. As we spend more and more time on radio and television talkshows and watching TikTok clips on a loop of politicians, we need to put them to task on what they tend to do. Particularly, how are they going to enable young people find meaningful jobs or any job at all? How are they going to help the elderly live decent lives? What is their plan on education, health, transport, and agriculture among other key sectors? Also, there is a need for civic education so that our people understand that the best thing for them is not to be given a t-shirt or a piece of soap or even a hoe, rather to have something that they do that can enable them buy such stuff on their own. It is time for the population to eat. The politicians have eaten enough. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025

Out to Lunch

#OutToLunch: Poor pay of humanities teachers may take us back to Covid days

By Denis Jjuuko It is more than five years since the dark days when many people who could afford a TV set spent their days on the screen, watching numbers as they were being updated in real time of the people who were dying. Those without TV sets, clung to their small world receivers. The world was coming to an end. The televised address of the president became the most anticipated event. People waited for his trademark “therefore” with abated breath. Would he unlock the country or extend the lockdown? The children stayed at home instead of school for two years or so. The majority of those from middle income families deceived themselves that they were learning online. The majority of teachers also convinced themselves that they were teaching. The truth is learning wasn’t taking place. Those from poorer households loitered the streets and villages. Some of them have never stopped loitering up to today. Many became teenage mothers — their lives thrown into the world they had never imagined. A cycle of poverty on the horizons. Covid-19 is something many people will never forget. Over the weekend, a video emerged online of kids in a secondary school lounging in the vast fields and shrubs that make their compound. They were pretending to revise their books only for the camera to show many coupling. Some were even sleeping in the chests of others or very close to each other. It is hard to tell when the video was shot or which school it was. However, the concern of many people was that the ongoing humanity teachers strike is leading to many kids spending time discovering the anatomy of their bodies instead of being in classrooms learning. If teenagers spend their time discovering what they shouldn’t be discovering, many will end up pregnant or with sexually transmitted diseases. Remember, that we haven’t yet recovered from the teenage pregnancy crisis as a result of Covid-19. The humanity teachers are striking because government decided to pay science teachers more in a bid to stimulate innovation and transformation. The humanity teachers are calling this discriminatory arguing that they should also be paid as much as their science counterparts. Scientists may do a lot to transform a country but they can’t do it on their own. Innovations for example must be marketed. Lawyers must exist to help solve legal problems that may crop up as a result of scientists disagreeing on their innovations or how to share the proceeds. Getting humanities teachers back to the classrooms should be urgently handled so that we avert a crisis that may happen as teenagers loiter around school compounds for days indulging in activities that they shouldn’t be involved in. Although the country may decide that sciences are the best way to develop Uganda, it should not come at the expense of those who may want to pursue humanities courses. All learners should be given an equal opportunity to study want they want. Both those who study sciences and humanities have a role to play in the development of our country. However, government can find other ways to incentivize both learners and teachers that is not seen as discriminatory. For examples, learners, will want to study courses that lead to employment with higher pay. Their parents and/or guardians will push them to that too. But if they see doctors striking every day for poor pay, they will not see any reason why they should spend many years in medical school instead of doing something else. If we can’t pay our doctors enough money to ensure they work in the wards and theatres, however much we pay science teachers won’t have any impact on medicine for example. If kids go to university to study mechatronics engineering and there aren’t enough organizations willing to take them on for internship or offer them jobs after graduation, they will encourage their peers not to do the course. If they think the opportunities are in trading crypto, that is where they will go. If they see social influencers living the life, that is what they will want to do. The reason many parents of years ago wanted to see their kids become doctors, lawyers and engineers among other professions was because they had seen how those who studied such lived their lives. Parents always want the best for their children. Although paying science teachers is important, paying humanitiess teachers is as important otherwise a time will come when we are now oversupplied with scientists at the expenses of humanities. Both sciences and humanities need each other. And for now, a major crisis looms if we don’t get the kids back in classrooms regardless of what they are studying. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025