Office Space in Kampala: Rents, Supply and Yields

How much is office rent in Kampala?

Knight Frank Uganda's H1 2026 review gives the clearest recent numbers. They are average net monthly rates per square metre, quoted in dollars, and they depend on the grade of the building.

The UGX column is our arithmetic at UGX 3,710.64 to the dollar, the June 2026 average given in the same review. It moves with the exchange rate. As an example: 100 sqm of Grade A space is US$20,400 a year, about UGX 75.7 million. The same area in Grade AB is US$16,800, about UGX 62.3 million. The gap of roughly UGX 13.4 million a year is what you pay for the better building. Ask each landlord whether the quoted rate is net of service charge, because the review does not say what is included.

For comparison, Business Daily reported on 24 February 2026, from Knight Frank data for H2 2025, that Grade A rent in Kampala was US$16.50 per sqm per month, against US$15 in Dar es Salaam and US$13 in Kenya. See Offices to Let in Nairobi: Westlands, Upper Hill, CBD if you are comparing cities.

Is there too much office space in Kampala?

There is too much of the wrong kind. About 65,000 sqm of office space was delivered in H1 2026, up from roughly 50,000 sqm across all of 2025, and more than 130,000 sqm is in the pipeline. But Knight Frank says a significant share of the new stock was built for owners or the government to occupy, so it never reaches the rental market, and the effect on leasing of modern buildings was small.

The bigger story is relocation. Thirteen justice sector institutions moved into JLOS Towers in March 2026, which put buildings they vacated, such as Bauman House and Georgian House, back on the market in a Grade AB segment that already had high vacancy. The IGG Building, due in H2 2026, will repeat the pattern. Knight Frank describes the market as tenant-driven and says well-managed modern buildings are doing better than old ones. In February 2025 Business Times Uganda had already reported that more than 100,000 sqm was expected to reach the market in 2025 and that Grade A and AB vacancy was rising.

What can a tenant negotiate?

More than the headline rent. The H1 2026 review says that, to close deals without cutting headline rents, landlords are using fit-out contributions, rent-free periods and phased occupation, and that Grade AB landlords are likely to lean on incentives rather than headline cuts. So bargain on the package:

• Rent-free months at the start, longer for a longer lease.
• Fit-out contribution, where the landlord pays part of partitions, cabling or air conditioning.
• Phased occupation, so you pay for the space you use and take the rest later.
• Parking. Knight Frank says parking has moved from a preference to a prerequisite as congestion and fuel costs bite, and that buildings which cannot guarantee enough bays are being penalised. Put the number of bays in the lease.
• Yearly increases. Business Times Uganda reported typical leases of 3 to 5 years and yearly escalations of 3% to 5%. Under section 26 of the Landlord and Tenant Act, 2022, unless the agreement says otherwise, rent cannot rise by more than 10% a year, notice must be at least 60 days in the prescribed form, and no increase may come within 12 months of the last. A lease that fixes the step is what counts.
• Service charge. Section 46 lets a landlord charge a service fee for security, conservancy and similar services. Ask for a written budget. Our note on Mall and Office Service Charges in Kampala explains what to ask.

A lease worth 25 currency points (UGX 500,000) or more is enforceable by court action only if it is in writing or in a data message, or the other side admits it (section 4). Landlords of business premises in a city or municipality must give the tenant a bank account for rent (section 21(4)).

Which offices suit small firms and start-ups?

Business Times Uganda reported in 2025 that demand for units under 200 sqm persisted. Knight Frank's 2026 review adds two choices for small firms. Several condominium office developments launched in H1 2026, with interest strongest from SMEs and professional firms that want to own their space. And enquiries for standalone houses suited to office use rose in Naguru, Bukoto and Ntinda, which offer lower costs, better access and more parking than the city centre. If you are weighing a house in that area, see Houses and Apartments for Rent in Ntinda, Kampala. A house let as an office is a change of use, so ask the local authority and read the landlord's consent in the lease.

Retail-style or showroom space is a separate market: see shops for rent Kampala. Stores and workshops are on Warehouses for Rent or Sale in Kampala.

What do office buildings yield for investors?

Business Daily reported on 24 February 2026, quoting Knight Frank analysis of H2 2025, that the average yield on a prime office was 9% in Kampala and in Dar es Salaam, and 8.5% in Nairobi. The H1 2026 review we read does not give a new yield. A yield is annual rent divided by price, so a building bought at UGX 3,000,000,000 that earns UGX 270,000,000 a year is at 9% gross. After empty months, service costs and tax, the figure your account sees is lower. URA's 2022 guidance says an individual pays 12% on gross rent above UGX 2,820,000 a year, and a company pays 30% after deducting up to 50% of the rent as expenses. A URA notice of 30 October 2026 sets the VAT registration threshold at UGX 300 million a year from 1 July 2026, and URA's landlord page says commercial landlords above the threshold charge 18% VAT.

The full analysis is in Commercial Property in Uganda: An Investor's Guide. Land & Property listings, Nov 2026, include no office buildings. Browse the commercial listings as they appear, or ask our team on WhatsApp or by email for a brief.

Frequently asked questions

Related guides

• Commercial Property in Uganda: Shops, Offices, Warehouses
• Commercial Property in Uganda: An Investor's Guide
• Shops for Rent in Kampala: What Tenants Pay
• Warehouses for Rent or Sale in Kampala
• Mall and Office Service Charges in Kampala
• Student Hostels Near Universities: Buy or Build