Kampala, the capital city of Uganda, has experienced increases in the prices of basic food commodities since 2002, with the sharpest increase noticed over the period 2007–2011. Major factors contributing to this trend include rapid growth in the demand for food due to the increase in population, urbanisation, drought (climate changes) impacts in the agricultural areas of Uganda and a sharp increase in the cost of living driven by inflation. The increase in food prices has made it difficult for many low income earners in Kampala to meet their daily food requirements. In response, urban and peri-urban agriculture is making a very important contribution to the general food supply of the city. Besides making a significant contribution to the food basket of Kampala city, urban and peri-urban agriculture represents an important economic activity within the city. Emerging policy and planning frameworks support the continued positive contribution of urban and peri-urban agriculture. To that effect Kampala Capital City Authority (KCCA) now recognizes urban agriculture as a land use system and a vital policy issue. However, more is still needed from the public, urban authorities, urban planners and policy makers to strengthen this vital sector. The purpose of this paper is to discuss the development of urban and peri-urban agriculture and its contribution to the food supply crisis in Kampala city, as well as the process of developing policies to enable urban agriculture in Kampala city.