The Uganda Law Reform Commission recently completed a comprehensive study with the objective of formulating legislation to govern valuation services in Uganda. At present, the country lacks a unified legal framework for regulating valuation services, leading to unreliability and lack of oversight in the valuation processes. This deficiency has resulted in challenges during land acquisition, increased disputes concerning valuations, and a decline in public trust in the valuation system.
Valuation services play a crucial role in Uganda's market economy, influencing various decisions related to economic development and transformation. These decisions include compulsory property acquisition by the government, tax determination, government receivables (such as stamp duty, ground rates, and premium on leases), access to mortgage financing, and asset and business acquisitions and disposals.
The primary aim of the study was to modernize and strengthen the delivery of valuation services, ensuring consistent, transparent, and equitable processes aligned with global best practices. Additionally, the study sought to establish minimum standards for professional practice, education, ethics, and discipline to enhance the quality and reliability of valuations.
Extensive stakeholder consultations were conducted in various districts, including Mbarara, Hoima, Gulu, Kampala, and Jinja, targeting professionals in valuation, local leaders, government officials, landowners, and the business community. Moreover, benchmarking studies were conducted in the Republic of Tanzania and Ireland to gain insights into successful regulation models for valuation services.
The study's key recommendations encompass the enactment of comprehensive legislation to govern valuation services in Uganda, with provisions that include establishing the office of the Chief Government Valuer through legal channels. It also focuses on defining the professional competencies of valuers, issuing guidelines and standards for the valuation processes, implementing a registration and licensing system for professional valuers, and setting up a national database for valuations.
The proposed legislation aims to bring consistency, transparency, and reliability to Uganda's valuation services, fostering confidence among stakeholders and facilitating economic growth and development in the country. By adhering to global best practices and setting higher standards for professional conduct, this initiative seeks to enhance the valuation landscape and ensure that valuations play a pivotal role in the nation's continued progress.