Property Rates and Ground Rent in Uganda
Updated 3 November 2026 · Land & Property editorial team
Property rates and ground rent are different yearly charges. Rates are a local authority tax paid by the property owner, assessed on a valuation. Ground rent is paid by a lessee to the landlord under a lease. As of November 2026, the Kampala Capital City Authority says owner-occupied homes are currently exempt from rates, while rented and commercial property pays 6% of rateable value.
- Who pays rates (KCCA)
- The owner, under the Local Government (Rating) Act 2005
- KCCA rate
- 6% of rateable value, per KCCA's eCitie page
- Owner-occupied homes (KCCA)
- Currently exempt, per KCCA
- Ground rent
- Annual payment by lessee to lessor, set by the lease
What is the difference between property rates and ground rent?
Rates and ground rent are both yearly payments tied to land, but they go to different people and rest on different law.
| Property rates | Ground rent | |
|---|---|---|
| Paid by | The property owner | The lessee (leaseholder) |
| Paid to | The local authority, such as KCCA | The landlord or lessor |
| Basis | Valuation of the property | The lease agreement |
| If unpaid | Warrant, auction, rent from tenants (KCCA) | Re-entry or recovery by distress (KCCA) |
A freehold owner with no lease has no ground rent. A leaseholder can face both charges. For the basics of what each tenure means, see Land for Sale in Uganda.
Do I pay rates on my house in Kampala?
It depends on how you use the property. KCCA's eCitie page says rates are charged under the Kampala Capital City Authority Act 2010 and the Local Government (Rating) Act 2005, as amended, and that the person liable is the owner of the property being assessed. It adds that owners of commercial properties, including rented residential properties, must pay, and that owner-occupied residential property is currently exempt. The rate it gives is 6% of the property's rateable value, which is its net annual rental value.
So a landlord renting out a house in Kampala should expect a rates bill, while an owner living in their own home may not. These are KCCA's statements as of November 2026. Rules can change by amendment, so check the authority's current notices. If you rent out property, also read about the rental income tax deadline, which is a separate tax from rates.
Who assesses rates, and what if I disagree?
KCCA says values are determined by qualified and registered valuation surveyors. The value they set is the base for your bill. The authority's eCitie page does not describe an objection process, and we have not verified one, so if your assessment looks wrong, use KCCA's complaints channels and ask for the valuation basis in writing.
Outside Kampala, plots in Wakiso district, including areas such as the Property in Kasangati page covers, are outside KCCA's area. We do not have a verified rating schedule for councils outside Kampala, so treat the KCCA figures here as Kampala figures only. If you are weighing land for sale in Wakiso, ask the council for the rating position on the specific plot before you pay.
What is ground rent, and who sets it?
KCCA describes ground rent as an annual payment made by the tenant (the lessee) to the landlord (the lessor), revisable under the lease terms. The amount varies with the market value of the plot as determined by valuers, and the lessee has a contractual obligation to pay it. The Land Act governs leases, and the KCCA page names it alongside the Physical Planning Act 2010.
The practical point for a buyer is that the number is in the lease. Read the rent clause, the revision clause and the remaining term. A short remaining term and a rent that is due for revision are both things that change the value of the plot. If the plot is leasehold, our guide Buying Land With Unpaid Ground Rent or Rates shows how to check what is owed before you sign.
What happens if rates or ground rent are not paid?
For rates, KCCA lists three recovery routes. A magistrate can grant a warrant once liability and the amount due are confirmed. KCCA can auction the property to recover the rates and any interest. And KCCA can require tenants to pay their rent directly to it until the arrears and interest are cleared, with those payments credited to the owner. Interest applies to unpaid rates, though the page does not state the rate.
For ground rent, KCCA says the lessor may re-enter the plot and lease it to a new tenant, and that arrears can lead to recovery by distress. A buyer who completes a purchase without checking can inherit a problem that started before they arrived. That is why arrears are a buying issue, not just an owner's issue. An auction sale can also carry unpaid charges, so see Buying Land or Property at Auction in Uganda as well.
What should I check before transfer?
- Ask the seller for the latest rates bill and proof of payment, or request a certificate of arrears. KCCA says buyers can request one from the seller or obtain one from KCCA for a fee, and that titles and documents cannot be registered without a certificate showing no rates arrears.
- For leasehold, ask the landlord for a written statement of the ground rent paid to date and any revision due.
- Check the lease term left and the reserved rent against the title.
- Put a clause in the sale agreement that the seller clears all arrears up to completion, and agree a retention if the figure is unknown.
- Visit the plot: book an escorted site visit and ask neighbours about charges on similar plots.
Our page on Plots for Sale in Kampala: What Is Left and What It Costs shows what is available. You can also browse plot listings across Uganda.
Frequently asked questions
Do I pay rates on my house in Kampala?
According to KCCA's eCitie page, owner-occupied residential property is currently exempt, while commercial property, including rented residential property, pays 6% of rateable value. Check KCCA's current notices because rules can change.
What is ground rent?
Ground rent is a yearly payment from a lessee to the landlord, revisable under the lease. KCCA says it varies with the plot's market value and that it is a contractual obligation. Non-payment can lead to re-entry or recovery by distress.
Who pays property rates, the owner or the tenant?
The owner is the liable person under the Local Government (Rating) Act 2005, as KCCA states. KCCA can, however, require tenants to pay their rent to it directly until arrears are cleared, with the money credited to the owner.
Can I get a certificate showing there are no rates arrears?
KCCA says a buyer can request a certificate of arrears from the seller or obtain one from KCCA for a fee, and that titles and documents cannot be registered without a certificate showing no rates arrears.
Do freehold owners pay ground rent?
Ground rent comes from a lease, so a freehold owner with no lease has none. A leaseholder pays it. Always read the title and lease to see which tenure applies to the plot you are buying.
Sources
- Property rates, Kampala Capital City Authority (accessed 2026-11)
- Rent and rates (ground rent), Kampala Capital City Authority (accessed 2026-11)
Related guides
- Land for Sale in Uganda: Verified Plots and the Complete Buyer's Guide
- Buying Land With Unpaid Ground Rent or Rates
- Buying Land or Property at Auction in Uganda
- Property for Sale in Wakiso: Land, Houses, Apartments
- Property Tax Dates: Rental Tax, Rates and Ground Rent
- Plots for Sale in Kampala: What Is Left and What It Costs