In this paper, aimed as a background for further research, the author examines the effect of urbanisation on housing for the low income earners in Kampala. The author discusses Kampala’s housing environment by looking at low-income earners’ access to housing in the city under conditions of rapid population rise, growing housing demand, rising land prices and growing poverty. Findings show that the housing environment for low-income earners in Kampala is: far from satisfactory, characterised by sub-standard housing that is lacking both in quality and quantity. Urbanisation in Kampala has led to increased housing demand, rising land prices and growing urban poverty in the city, thereby reducing low-income earners’ accessibility to decent shelter. The author concludes by suggesting recommendations to address the negative effects of urbanisation while at the same time encouraging equitable development of all regions of the country. He also recommends review of existing land supply policies to address the existing land tenure problems arising out of the multiplicity of tenure systems in place, the establishment of strategies for developing low-cost rental accommodation and supporting the private sector to develop decent and affordable rental shelter.