Uganda’s Public Debt Rises 14.8% to $37.1 Billion
Uganda’s total public debt rose by 14.8% in the 12 months to June 2026, reaching $37.1 billion as the government increased domestic borrowing to finance its budget deficit, the Finance Ministry said.
The debt stock rose from $32.3 billion in June 2025, while public debt as a share of gross domestic product increased to 54.3%, from 51.3% a year earlier. External debt accounted for 43.9% of the total.
The ministry said the increase was driven mainly by higher domestic debt issuance during the financial year that ended in June, including increased sales of Treasury bonds.
Uganda has increasingly turned to longer-term domestic borrowing to finance development needs and reduce refinancing and rollover risks. The government introduced a 25-year Treasury bond last year, the longest maturity in its domestic debt portfolio.
The rise in debt comes amid concerns over Uganda’s growing interest burden. Fitch affirmed the country’s sovereign rating at “B” with a stable outlook in August, saying rising public debt and high interest costs remained constraints.
Uganda’s government has said its borrowing is supporting investments in infrastructure, energy, water, agriculture, education and health, while seeking to strengthen domestic revenue collection.
