Land vs Treasury Bonds vs Rental Property in Uganda

Should I buy land or treasury bonds?

It depends on what you need. Bonds suit someone who wants a set income and the ability to sell without finding a buyer for a plot. Rental property suits someone who will manage a building and accept vacancy for a possible rent that rises over time. Land suits someone who can wait, and who is prepared to hold, develop or farm it.

Nobody can tell you which will earn most over the next ten years. We compare them below on the same footing and show the sums, so that you can change the inputs for your own case. All figures are as of November 2026, and none is a promise.

How do the three compare side by side?

The liquidity row is a general description and not a measured statistic. Bond liquidity depends on the market at the time you sell.

What do treasury bonds pay right now?

At the Bank of Uganda auction of 15 April 2026, UG Business reported clearing yields of 13.4% for the 3-year bond, 15.5% for the 10-year and 16.0% for the 20-year. The 10-year was 14.5% in February 2026, so yields moved by a full percentage point in two months. The report notes that the 10-year yield remained below the 17% recorded in January 2025 and the 17.5% peak in May 2025.

We could not confirm yields by tenor for later 2026 auctions from a reliable source, so we use April as our dated reference. Check the latest Bank of Uganda auction results before you buy. We also give no tax figure on bond interest. Ask URA or a tax adviser how it applies to you.

What does rental property earn?

Sourced Kampala figures are for commercial property: about 9% gross for prime offices (H2 2025) and about 13% for prime warehouses (H1 2025), both from Knight Frank via Business Daily. For homes, the only attributed yields we opened are from 2017. See rental yield Kampala for the detail and the Rental Yield Calculator for Uganda to test your own figures.

Rental income is taxed. As of November 2026, individuals pay 12% of annual gross rent above UGX 2,820,000 with no expense deduction (URA, PwC). Companies deduct up to 50% of gross rent and pay 30% on the rest. Our page on Property tax Uganda adds the other costs.

What evidence is there on land price growth?

Less than people assume. We did not find a reliable public series of land price changes for Uganda, and asking prices in adverts are not sale prices. A 2012 study of 9,185 parcels from the 2005/06 national household survey (Alobo, Bashaasha and Mugisha) found that titles, mainly leasehold, raise agricultural land prices and that peri-urban per-acre prices were about 87% higher than rural. That is a snapshot of price levels in one year, and does not show how prices change over time.

Our own data shows what sellers ask today. On Land & Property listings in November 2026 the median plot asked UGX 155 million and the median farmland listing UGX 13 million per acre. Those are asking prices on one platform, not a market index. Land costs also include Stamp Duty on Land and Property in Uganda and, on a later sale for business-asset land, withholding tax sale of land.

What does a worked comparison look like?

Illustration only. The inputs are round assumptions, not forecasts. Replace them with your own. Take UGX 100 million over five years, ignoring buying and selling costs for simplicity.

• Bond: at the April 2026 10-year yield of 15.5%, interest would be about UGX 15.5 million a year, or UGX 77.5 million over five years, before any tax. That assumes you hold the bond and that its price does not move.
• Rental: assume a 7% gross yield, so UGX 7 million a year. An individual pays 12% on the part above UGX 2,820,000, which is 12% of UGX 4,180,000, or about UGX 501,600. If repairs and vacancy cost UGX 1 million a year, net income is about UGX 5.5 million, or UGX 27.5 million over five years, before any change in the building's value.
• Land: income is nil. To match the bond's UGX 77.5 million of interest, the land would need to be sold for about UGX 177.5 million, a gain of about 12.2% a year for five years, before selling costs and tax.

So on these inputs, land has to appreciate strongly just to match bonds, and rental has to rise in value as well as pay rent. Real results will differ. Property may suit you for reasons beyond return, such as using it yourself, but that is a different question.

Which is safer, and what should I do next?

Safety depends on the risk you fear. Bonds carry less title and management risk but do not protect you from inflation or price falls if sold early. Property exposes you to title fraud, vacancy and slow resale. Diaspora buyers face currency moves too, covered in our page on Apartment or Land.

Many investors split their money across more than one option. Before you decide, check the title and the seller, keep enough cash for emergencies, and take advice. You can browse plot listings to see real asking prices, or ask our team on WhatsApp or by email. This is general information, not financial advice, and no return is guaranteed.

Frequently asked questions

Related guides

• Rental Yields in Kampala by Property Type
• Rental Yield Calculator for Uganda
• Is Uganda Property a Good Investment in 2026?
• Apartment or Land: Which Suits a Diaspora Buyer?
• Stamp Duty on Land and Property in Uganda