Uganda's 35-year-old property developer transforming Kampala's city slums into fortune hubs

By Mourice Muhoozi

Uganda’s economy is slowly unraveling from the effects of the Covid-19 lockdowns.  The property sector is still reeling from the drag-on effects on both the demand and supply sides.

The Knight Frank 2020 report provides an analysis and outlook into the performance of the Office, residential, retail, valuations, and Industrial property sectors against the country’s economic performance over the same period.

The report highlights market dynamics that have been prevalent in the wake of the Covid-19 pandemic and key stimuli that will impact the sector going forward.

The report observed that although, going forward, tenants would adopt a variety of flexible occupation models that would see them downsizing space demanded and driving hard bargains, a rebound was expected in 2021/2022 on the back of the much-anticipated Final Investment Decision on oil production, coupled with the anticipated rollout of the Covid-19 vaccine especially for the quality, well-serviced and green and smart properties that catered to the needs of more meticulous and global occupiers.

According to the Global Property Guide, Kampala city has the country's most expensive housing. The average price of two- and three-bedroom apartments in prime residential areas of Kampala stood at $280,000 and $325,000, respectively, in the first half of 2019, according to Knight Frank. The average price for four- to five-bedroom bungalows was $ 1 million.

During the year to Q3 2019, the nationwide residential property price index rose by a modest 3.25 percent, following a decline of 6.9 percent in Q2 2019 and annual rises of 9.4% in Q1 2019, 7.1% in Q4 2018, and 1.7 per cent in Q3 2018, according to the Uganda Bureau of Statistics .

In Kampala, Central and Makindye, residential property prices surged 18.5 percent during the year to Q3 2019.

In Nakawa, house prices rose by a minuscule 0.6 percent but fell 1.3 percent when adjusted for inflation.

The demand for low-cost housing continues to grow in Uganda, amidst rapid population growth and urbanization. There is a housing shortage of 2.1 million units, growing by 200,000 annually, according to UBS.

Being a busy city, Kampala is grappling with many challenges, including rural-urban migration, which has contributed to poor housing and unplanned commercial properties.

This is one of the reasons that has prompted Mr Haruna Sentongo to embark on a mission of changing the face of Kampala city and its suburbs through constructing ultra-modern workspaces, markets, executive offices, and residentials. It has made his one of the most prominent faces of real estate – the only difference being he is much younger than other players such as Uganda’s richest man Sudhir Ruparelia.

With more than 27 construction projects, Mr Sentongo, who boasts of more than 27 construction projects is taking advantage of areas that city authorities had ignored in terms of development. Through setting up well-planned structures, he is gibing slum areas facelift. Mengo Kisenyi, for example, was once known for high crime rates such as theft and prostitution but it has now transformed.

Currently, Mengo Kisenyi is one of the safest and organised areas in Kampala. This is attributed to the modern shops and market stalls that accommodate both mechanics and other vendors that were constructed in the area. 

Born on August 30, 1987, to businessman Haruna Segawa and Nakayiza Jalia in Kalungu District, Sentongo is a Ugandan entrepreneur, real estate dealer, philanthropist, and founder of Haruna Enterprises.

In 2003, he started a small retail shop, dealing in female handbags imported from China. Later in 2005, he expanded his business and started dealing in home and offices furniture using a distribution store in Kampala as his main base.

In 2007, he ventured into importing ladies’ clothes from Southeast Asia.

In 2011, he constructed Haruna Towers after incorporating his Haruna Enterprises Ltd.

Sentongo is also into philanthropy. In July 2020, he exempted about 500 of his tenants from paying rent at his Segawa Market in Mengo, citing the adverse effects of Covid-19.

In October the same year, he exempted his tenants at Haruna Mall in Ntinda from paying six months' rent due to the effects of Covid-19.

His first property dubbed Haruna Towers was built in the suburbs of Wandegeya. He later moved to Ntinda, where he constructed a building named Haruna Towers Ntinda which is home to 200 shops, 50 offices, gym, a cinema, food court with Chinese and Arabic restaurants.

 Currently, he is in the process of constructing another 16 floor building in Nakasero, projected to cost USD35 million.

Other businesses

Apart from real estate, Mr Sentongo is a versatile entrepreneur who deals in other businesses such as food sales and motor spare parts.

He also owns a processing bottled mineral water company, Skin Care Products, and a range of household consumables which include hand sanitizers, laundry, toilet soap, candles, confectionaries with factories located in Nsangi, Wakiso District.

He also owns and operates cinema halls and theaters situated in Ntinda. He also owns a multitude of gyms and other fitness centers in Kampala.

Mr Sentongo boasts of 24 acres of undeveloped land in Kampala, spread across Mengo Kisenyi in Central Business District and the upscale Kampala suburbs including Munyonyo, Nakasero, and Ntinda, all valued at $350 million.