While the developed world is adapting to the consequences of global warming, climate changes will negatively affect the quality of life and economic growth in developing countries. The low-income people from low and medium HDI (Human Development Index) countries would suffer even more from climate changes because of their vulnerable living conditions and the lack of appropriate and adequate infrastructures. Particular attention should therefore be paid to the low-income housing conditions not only to address the environmental concerns but also to improve the living standards and health and wellbeing of low-income people. The work presented here is a part of an on-going EPSRC funded research programme which intends to identify and develop energy efficient methods for delivering low-income housing in tropical countries namely Uganda, Tanzania, China and Thailand. This paper evaluates the current Ugandan housing conditions in order to identify the opportunities and challenges for improving the energy efficiency as well as the quality of low-income housing in Uganda. The available literature are reviewed and the findings are used to draw a clear picture on the current housing conditions, limitations and the key areas for improvement. The findings reveal some critical areas such as affordability, informal settlement, overcrowding and access to housing facilities which require immediate attention. The research findings also highlight construction methods/materials and embodied energy as the key areas of improvement for reducing CO2 emissions of low-income housing in Uganda.