The research study assessed the level of household exposure, sensitivity, and capacity to cope with flood hazards in Kasese municipality, Kasese district, Uganda. The study used an indicator-based methodology. About 210 respondents were randomly sampled for interview. Individual weights for each indicator were allocated using Principal Component Analysis. Vulnerability indices were constructed at the household level and then aggregated at the division level. A Chi Square test at a significance level of 5% was used to test for differences in the level of household vulnerability. The results revealed that Nyamwamba division was most exposed while Central was least exposed to floods. The Central division was also found most sensitive while Bulembia was least sensitive to floods. Central division had better capacity to cope with floods while Bulembia had the least capacity. Results revealed a significant difference in the level of households’ vulnerability across the divisions. However, overall, Nyamwamba was found most vulnerable and Central least vulnerable to floods. About 43.8% of the households in Kasese municipality were found highly vulnerable to floods. Therefore, urgent attention by the government through policy action measures towards climate change adaptation should be given to address the high levels of vulnerability.