Urbanisation and has resulted into the mushrooming of informal settlement in Uganda’s capital city Kampala. Several housing projects termed as “low-cost” for low-income households have been overseen by government; however most have been occupied by higher income groups since the houses are usually smaller prototypes of higher income houses. The houses constructed by the low-income households in the informal settlement are contributing to urban sprawl in Kampala since they are predominantly single storey. Building design professionals have not come up to give advice on appropriate house types that could help solve these problems. The formal houses in planned housing areas are also characterised by single storey detached houses on large plots, resulting also into very low residential densities. This implies that land in Uganda is not used economically. This problem is coupled with inadequate basic services and infrastructure in the informal settlement. Had urban sprawl been curbed earlier the informal settlement would not have encroached upon swamps.