Uganda’s urban population is increasing rapidly from less than 1 million in 1980 to over 4.5 million persons in 2012 indicating a more than fourfold increase. At 12 per cent level of urbanization, Uganda is considered a rural economy when compared to Kenya and Tanzania that are 20 per cent and 22 per cent urbanized respectively.
For the country to achieve faster socio-economic transformation there is need to raise the level of urbanization. The level of urbanization in various regions of Uganda ranges between 7 per cent and 10 per cent. . Kampala is the only urban district with a night population of 1.2 million and a day population of close to 3 million. Kampala City is followed by Gulu Town which has a population of 0.1 million.
Kampala City is experiencing rapid population growth of 5.6 % per annum largely influenced by rural-urban migration. Population increase in Kampala City area is responsible for increased demand for employment, land for housing, social services and infrastructure resulting in the ongoing urban development and industrialization. Kampala City has evolved from a small area of 8km2 to a “city of seven hills” at independence in 1962 and it has now expanded to more than twenty five hills sourrounding the city . Kampala City is currently ranked among the fastest growing cities in Africa.