Being a frequent visitor to Kampala, I always stay at the Lopez. The manager, Baker, is very friendly and happy to help. The rooms are basic- double bed, wardrobe, television, mosquito net, but clean. All rooms are ensuite and a basic breakfast is included. When there are power cuts in the city, they have a back-up generator which usually kicks in after a few minutes.
They are often full, so ring ahead to ensure a room is available. Phone them on: [--]
People often stay for long periods of time and discounts are easily negotiated. Usually costs me £10 per night ( for 2people) or £7 per night if staying more than ten days- I don't know where else you get the same in Kampala!
The location is great, right off the main road going through Kabalagala where all the main bars and clubs are. (Though most of the noise cannot be heard from the hotel) There are local bodaboda or local buses (taxis) leaving within a few metres of the entrance of the hotel. The bus to Kampala city centre takes about 30 minutes in rush hour traffic, bodaboda takes 5 minutes.
There is everything you need close by- pharmacies, supermarkets, internet cafes, restaurants etc. Just 5 minutes walk up to Tank Hill and then onto the leafy suburbs of Muyenga area.
Not a hotel for the luxury traveller, but better than a hostel! A good mix of holiday makers and business people from neighbouring countries staying, so always interesting people to talk to.
For pictures, see: http://pictorior.com/profile.php?cat=8&grp=6&dist=1&pid=22