Furnished Apartment Investment Yields in Kampala
Updated 3 November 2026 · Land & Property editorial team
Yield on a furnished Kampala apartment is the nightly income left after commission, running costs and tax, divided by what you paid for the unit and its fit-out. Knight Frank reports a median 44 percent occupancy and a median booked rate of US$39 a night for Airbnb listings in late 2025. Your result depends on occupancy, so test several, not one. As of November 2026.
- Median occupancy, Kampala Airbnb segment
- 44% (Knight Frank 2026, citing Airbtics)
- Median booked nightly rate
- US$39 (Knight Frank 2026)
- Estimated average annual revenue per listing
- US$6,333 (Knight Frank 2026, citing AirDNA)
- Active Airbnb listings, Dec 2025
- 3,478, up 56.7% year on year (Knight Frank 2026)
- VAT registration threshold
- UGX 300 million a year from 1 July 2026 (URA)
What yield can a furnished apartment make in Kampala?
There is no honest single figure, and we do not promise one. Yield depends on what you paid, how many nights you sell and what you charge. What can be sourced is the market's starting point. Knight Frank's Kampala Short-Term Rental Market Report 2026 puts the median occupancy of the Airbnb segment at 44 percent, the median booked nightly rate at US$39, estimated average annual revenue per listing at US$6,333 and revenue per available rental night at US$16.7. It counted 3,478 active Airbnb listings in December 2025, up 56.7 percent in a year, and expects more than 1,000 new residential units in prime zones within 24 months.
The report also finds that the market rewards execution discipline more than asset quality alone, and it sees the best risk-adjusted returns in Bugolobi, Bukoto, Mbuya and Entebbe, with rates there of US$50 to US$80 a night. These are market averages for listed units, not a forecast for your flat. The rest of this page shows how to do your own sums. See also Is Uganda Property a Good Investment in 2026?.
What capital goes in?
Add every shilling before the first guest:
- Purchase price of the apartment. Land & Property's live listings across Kampala and Wakiso show apartments at a median asking price of about UGX 1.3 billion across all sizes and areas (Land & Property listings, Nov 2026), so check the actual units on the apartment search.
- Transfer costs: stamp duty, legal fees, valuation and registration. Our buying costs guides give the current figures, so we do not repeat them here.
- Furnishing and fit-out: beds, linen, kitchen, TV, Wi-Fi router, work desk, curtains. Knight Frank lists backup power, water storage, fibre internet and a dedicated workspace as the minimum for competitive units.
- Licence and registration: your Uganda Tourism Board licence and tax registration, covered in Hosting Rules and Licensing in Uganda: Step by Step.
- Photography and set-up: Knight Frank advises a professional photographer, since most international guests book on digital presentation alone.
How do I model the income?
Income is nights sold times the nightly rate, less commission. Nights sold is 365 times occupancy. Do not use one occupancy figure. Run three: a weak case, the market median and a strong case. Knight Frank's demand calendar shows December as the peak month, with December and January the primary peak and February and March the primary trough, so a year with a strong December and a weak February can look very different from a flat average.
Commission on Land & Property is 15 percent by default, set per host, and the payment processing fee is charged to the guest, not deducted from you. Payouts arrive 72 business hours after check-in. Details are in Host Payouts and Commission on Land & Property. Set your rate with How to Price a Short Stay in Kampala. Quote ranges to yourself, never promises.
What are the running costs?
List each line, even small ones:
- electricity, water, gas, internet and a TV subscription;
- cleaning and laundry per turnover, partly recovered by the cleaning fee, which our policy caps at 25 percent of the nightly subtotal for stays under seven nights;
- management or caretaker fees if you do not run it yourself, see What a Property Manager Does and Charges;
- condominium service charge, which you pay whether or not the unit is occupied;
- insurance, repairs and replacement of linen and small appliances;
- property rates to your local council.
Ask your agent for the actual service charge, and ask three local quotes for cleaning. We do not publish unsourced prices.
What tax applies to the income?
Short-stay income is rental income and must be reported. URA's landlord page says landlords register with URA for taxes, that 6 percent withholding tax applies to rent above UGX 1 million paid through a designated withholding agent, and that VAT at 18 percent applies once registered. URA announced that the annual VAT registration threshold rose from UGX 150 million to UGX 300 million from 1 July 2026, so one flat will usually sit below it. Capital gains on land or buildings held as business assets are taxed at 30 percent on sale, per the same page.
We do not restate income tax rates here. See Tax on Rental Income in Uganda, and check with a tax adviser how your accommodation income is classified. This is general information as of November 2026.
What does a worked example look like?
Illustration only, not a forecast or a quote. Assume an apartment bought for UGX 400,000,000 with UGX 40,000,000 of fit-out, so UGX 440,000,000 in. Nightly rate UGX 200,000, occupancy 44 percent (the Knight Frank median), commission 15 percent, and cleaning fully covered by the guest cleaning fee.
| Line | UGX a year |
|---|---|
| Nights sold (365 x 44%, about 160.6) | 160.6 nights |
| Gross room income (160.6 x 200,000) | 32,120,000 |
| Commission at 15% | 4,818,000 |
| Utilities and internet (250,000 a month) | 3,000,000 |
| Service charge (300,000 a month) | 3,600,000 |
| Insurance, repairs, linen replacement | 2,000,000 |
| Net before tax | 18,702,000 |
| Net yield on UGX 440,000,000 | about 4.25% |
Now test occupancy. Each extra 10 points of occupancy adds 36.5 nights, or UGX 7,300,000 gross and UGX 6,205,000 after commission. At 60 percent occupancy, net before tax is about UGX 28,630,000 (6.5 percent). At 30 percent it falls to about UGX 10,015,000 (2.3 percent).
Is short stay better than a long let?
Use the same unit. Assume a long let at UGX 2,500,000 a month: UGX 30,000,000 a year, less the service charge of UGX 3,600,000 and UGX 1,000,000 for repairs, leaves UGX 25,400,000 before tax, a 5.8 percent yield on UGX 440,000,000 (the tenant pays utilities). The short-stay model in the table earns the same only if occupancy reaches about 55 percent, because 25,400,000 plus 8,600,000 of running costs, divided by the 62,050,000 you keep per year at full occupancy after commission, is 54.8 percent. All figures are illustration. Compare the full argument in Short-Let vs Long-Let in Kampala: Income Compared.
Short stay carries risks a long let does not: vacancy in the February to March trough, rising competition as new units open, guest damage, platform rule changes, licence compliance and the time you spend running it. Its advantages are flexibility, the ability to use the unit yourself and higher income when occupancy is strong. Browse Furnished Apartments for Rent in Kampala to see what is already on offer, read the Airbnb in Kampala: Areas, Hosting Rules and Tax guide, and then list your short stay when the numbers work. More rentals: Houses and Apartments for Rent in Uganda.
Frequently asked questions
What yield can a furnished apartment make in Kampala?
No one can promise a figure. Knight Frank reports a 44 percent median occupancy and a US$39 median booked rate for Airbnb listings in late 2025. In our illustration, 44 percent occupancy gave about 4.25 percent before tax. Test your own price, occupancy and costs.
Is short stay better than a long let?
Only if occupancy is high enough. In our illustration, the short stay needed about 55 percent occupancy to match a long let at UGX 2,500,000 a month. It also adds vacancy, damage and compliance risk.
What are the risks of buying to host?
Seasonal troughs, new supply, higher running costs, guest damage, licence and tax compliance and changing platform rules. Knight Frank says the market rewards execution, and that rising supply compresses rates in prime areas.
Do I pay VAT on short-stay income?
Only if you register. URA announced that the annual VAT registration threshold is UGX 300 million from 1 July 2026. Below it, VAT registration is not compulsory. Check with URA or an adviser, as of November 2026.
Which areas look best for yield?
Knight Frank rates Bugolobi, Bukoto, Mbuya and Entebbe as the best risk-adjusted entry in 2026, with rates of US$50 to US$80. Kyanja, Kisaasi and Ntinda offer lower entry cost at US$25 to US$50 a night.
Sources
- Kampala Short-Term Rental Market Report 2026, Knight Frank Uganda (accessed 2026-11)
- Real Estate Sector: landlords, Uganda Revenue Authority (accessed 2026-11)
- Revised VAT registration threshold, Uganda Revenue Authority (accessed 2026-11)