The man Swaliki Lukyamuzi was caught in the act by a neighbour who walked in on the defilement.
Lukyamuzi resides in Binyobirya village, Butenga Sub County.
Village Publicity Secretary Umar Kakooza confirms the incident.
Kakooza explains that Lukyamuzi was deserted by his wife after she caught him defiling their daughter.
The girl had been living with her grandmother Annet Kantamagga until Lukyamuzi demanded that she be sent home to help with chores from time to time.
The girl, who is believed to suffer from mental illness, told her rescuers that this was not the first time her father had forced her to engage in sexual intercourse.
The Southern Region Police Spokesperson Noah Sserunjogi says that police is going to take the victim for HIV/AIDS test to establish her status.
Lukyamuzi did not deny defiling his daughter, once in custody. He, however, argued in his defence that he had been tempted by an evil spirit.
Sserunjogi says Lukyamuzi is likely to face defilement charges once investigations are completed.
Last year a man was arrested in Bukomansimbi for having sexual intercourse with his daughter for more than 1 year after separating with his wife.
Just last week a chapatti seller went on the run with a 13-year-old girl he had been defiling.