Parliament has passed the Valuation Bill, 2024, a landmark piece of legislation expected to overhaul Uganda’s troubled valuation sector and restore credibility to real estate transactions, compensation, and public infrastructure projects.
The Bill, passed after MPs adopted the report of the Committee on Physical Infrastructure, introduces reforms to professionalize the practice, close loopholes, and strengthen oversight.
Presenting the committee’s findings, Deputy Chairperson Tony Awany told the House that Uganda’s valuation framework had for years been plagued by unreliable assessments and unregulated practices, with costly consequences for both government and citizens.
“These flaws have caused delayed implementation of public investments and infrastructure projects, financial losses, contestations of government valuations, increased litigation against government, hefty court awards, as well as imperfect real estate markets and non-performing loans,” Awany said.
The new law creates the Institute of Certified Valuers of Uganda, sets professional standards, and expands the mandate of the Chief Government Valuer (CGV). Membership will now require training and examinations, even for government valuers, unless they already belong to recognized professional bodies.
“The valuation function has for years suffered from lack of standards, unclear professionalisation, and unreliable practices. This Bill, with the committee’s recommendations, sets clear definitions, strengthens institutions, and streamlines membership and practice to protect both government and the public,” Awany added.
The Bill also clarifies that the CGV should only be involved in statutory valuations when explicitly ordered by a court, avoiding overburdening the office with every property dispute.
The committee refined governance rules for the new Institute, ensuring that practising valuers elected to the council have demonstrable experience. Vague dismissal grounds such as “moral turpitude” were scrapped to prevent abuse.
On licensing, MPs harmonised provisions to avoid contradictions between “certificates of licence” and “certificates of practice.” The Chief Government Valuer’s office was exempted from rules designed for private valuers, while the council was given powers to approve or reject licences.
The law also allows individuals dissatisfied with a valuation decision to appeal, creating an accountability mechanism previously missing.
Penalties for practicing without a licence sparked heated debate. The Bill initially set a fine of Shs100 million or two years in jail. Local Government Minister Raphael Magyezi urged a reduction to Shs10 million, calling the figure more realistic.
“It is okay to provide for a penalty, but 5,000 currency points (Shs100 million) is too much. Is it possible to scale it down and be a little more realistic? I am looking at Shs10 million,” Magyezi argued.
Deputy Attorney General Jackson Kafuuzi suggested Shs20 million as sufficient, warning against trivialising an issue that can cause losses in the billions.
“The effect of this problem might be so huge, in billions and yet the fine might be only Shs10 million or Shs5 million,” he cautioned.
After debate, Speaker Anita Among guided that the maximum penalty remain at 5,000 currency points in line with the committee’s report.
With Parliament’s nod, the Bill now awaits Presidential assent before becoming law.
