Kampala, the capital city of Uganda, is recognised as the most affordable in East Africa. It boasts of a lively culture, growing economy, and friendly environment, making it an appealing spot for both visitors and those looking to settle away from their home countries.
When comparing the cost of living in East African capitals, Kampala consistently emerges as the most economical. According to the Mercer Cost of Living Survey 2024, Kampala ranks significantly lower in terms of living expenses compared to its East African counterparts such as Nairobi, Dares Salaam, and Addis Ababa. The survey highlights that Kampala’s cost of living is approximately 30% lower than Nairobi and 25% lower than Dares Salaam.
One of the primary reasons for this affordability is the lower cost of goods and services. For instance, a basic meal at an inexpensive restaurant in Kampala costs around Ugx.19, 000, while in Nairobi, it averages $7, and in Dares Salaam, it’s about $6. This price difference extends to groceries as well. The cost of a litre of milk in Kampala is around Ugx.3, 700, whereas in Nairobi and Dares Salaam, it can be up to $1.20.
Housing is another significant factor contributing to Kampala’s affordability. The average monthly rent for a one-bedroom apartment in Kampala’s city centre is approximately Ugx.700, 000. In comparison, Nairobi’s central area demands around $600 for a similar apartment, and Dares Salaam’s average is about $500. Even outside the city centre, Kampala remains cheaper, with rents as low as Ugx.500-600k for a one-bedroom apartment, compared to $400 in Nairobi and $300 in Dares Salaam.
This lower housing cost extends to both renting and purchasing properties, making Kampala an attractive option for expatriates and locals alike. The city’s real estate market has been buoyed by its affordability, with new developments catering to a growing population seeking economical living solutions.
Transportation costs in Kampala are noticeably more affordable compared to neighbouring cities. For instance, a single bus ride within the city typically costs about Ugx.1, 000. In contrast, the same journey in Nairobi would set you back around $0.80, while in Dar es Salaam, you’d pay about $0.70.
Fuel prices follow a similar trend. In Kampala, a litre of petrol as of August 2024 is priced at roughly Ugx.5, 000. By comparison, motorists in Nairobi are paying about $1.50 per litre, while in Dar es Salaam, it’s around $1.40. This difference in transportation and fuel costs plays a significant role in shaping the overall cost of living in these cities, with Kampala offering some noticeable savings.
The lower cost of transportation in Kampala helps keep the overall cost of living down. This makes it easier for people to afford daily commutes and travel around the city. For both residents and visitors, getting from one place to another is more affordable, which reduces the financial stress of moving around. Whether it’s commuting to work, running errands, or just exploring the city, the cheaper transport options make life more manageable for everyone in Kampala.
Eating out and enjoying entertainment in Kampala is also more budget-friendly compared to other cities in East Africa. For example, a three-course meal for two people at a mid-range restaurant in Kampala costs about Ugx.100, 000. In Nairobi, the same type of meal would cost around $35, and in Dar es Salaam, it’s about $30.
Kampala offers a wide range of dining experiences, from affordable street food vendors to fancy restaurants, all of which are generally more affordable than in other nearby cities. This makes it easier for both locals and visitors to enjoy meals and entertainment without spending too much.
Entertainment options, such as cinema tickets and leisure activities, are similarly affordable. A movie ticket in Kampala costs around Ugx.22, 000, whereas in Nairobi, it’s about $8, and in Dares Salaam, approximately $7. This affordability makes Kampala a city where residents can enjoy a rich cultural and social life without straining their budgets.
Several reasons help keep Kampala an affordable city to live in. One key factor is that Uganda generally has lower average wages and production costs compared to other countries, which means prices in the city are lower too. Uganda’s good agricultural conditions also help reduce food prices since crops grow well, making groceries and dining out less expensive.
The Ugandan government also plays a part by supporting local businesses and working to control inflation, which helps keep the prices of goods and services stable. This focus on economic stability and growth helps Kampala maintain its reputation as a place where living costs are more affordable for both residents and visitors.
Kampala’s status as the most affordable capital city in East Africa is underscored by its lower costs of living, housing, transportation, and dining. The city offers an economical lifestyle while providing a vibrant cultural scene and growing economic opportunities. For people looking for an affordable yet fulfilling urban experience in East Africa, Kampala is a great option. The city’s continued growth and stable economy suggest that it will remain an affordable and attractive place for both locals and visitors.
