Why cost of building materials in Uganda continues to rise

Uganda’s construction sector posted a slight uptick in inflation, with the annual rate rising to 0.6 percent for the 12 months ending April 2025, up from 0.5 percent in March, according to the latest Construction Input Price Index (CIPI) released by the Uganda Bureau of Statistics (UBOS).

The modest increase was largely driven by inflation in specialised construction activities, which rose to 0.3 percent in April from 0.2 percent in March. Notably, the “Building Completion and Finishing” sub-category contributed significantly, recording an inflation rate of 0.8 percent, up from 0.7 percent the previous month.

UBOS noted that prices in “Electrical, Plumbing and Other Construction Installation” remained unchanged at 1.4 percent year-on-year, while “Demolition and Site Preparation” registered a slower decline, improving to -1.7 percent in April from -2.0 percent in March.

Inflation in the civil engineering works category also picked up, reaching 0.6 percent in April compared to 0.3 percent in March. This growth was primarily influenced by price movements in road and railway construction, which registered inflation of 0.6 percent. Meanwhile, building construction costs rose to 1.0 percent, from 0.9 percent in March, with both residential and non-residential buildings contributing equally to this increase.

On a monthly basis, construction sector inflation held steady at 0.2 percent in April, mirroring the rate recorded in March. This stability was supported by a consistent 0.2 percent rise in the price index for inputs into building construction.

UBOS also reported mixed trends in specific construction input prices. Materials such as sand and aggregate/hardcore saw price increases:

• Sand prices rose 0.8 percent, compared to a 0.1 percent increase in March.
• Prices for aggregate, hardcore, crushed or broken stone climbed 0.4 percent, reversing a 0.1 percent decline in March.
• High tensile steel bars also saw a modest 0.2 percent increase, recovering from a 0.5 percent drop in the previous month.

Conversely, some inputs registered price declines:

• Lime prices dropped 0.5 percent in April, down from a 1.3 percent increase in March.
• Eucalyptus props fell 1.1 percent, compared to a 1.3 percent increase in the previous month.

The latest data underscores the dynamic nature of Uganda’s construction sector, where rising costs in specialised activities and civil works are partially offset by easing prices for selected materials. Analysts note that continued monitoring of both global commodity trends and local market dynamics will be essential in understanding inflationary pressures in the sector moving forward.