Bank of Uganda reports rise in expenses and loan adjustments for FY 2024/2025
According to the report, annual operating expenditure increased by 6 percent from Shs 621 billion in 2023/2024 to Shs 660bln in 2024/2025

KAMPALA, October 9, 2025 — The Bank of Uganda’s [BoU] latest Integrated Annual Report for the 2024/2025 financial year ended June 30 2025 shows that the Central Bank’s operating expenses, staff costs, and currency production expenditures rose moderately, reflecting both increased operational activity and inflationary pressures.
According to the report, annual operating expenditure increased by 6 percent from Shs 621 billion in 2023/2024 to Shs 660bln in 2024/2025. The report attributes the increase mainly to higher employee costs, currency production expenses, and general administrative payments.
Employee benefits accounted for Shs 286.6bln, up from Shs 230.2bln the previous year, covering salaries, pensions, medical care, and staff training. General and administrative costs also rose to Shs 102.7bln, driven by expenses on communication, travel, software maintenance, and public awareness activities.
“The increase in staff costs was mainly due to salary adjustments, recruitment of specialised staff, and implementation of employee welfare and capacity-building programmes,” the report notes.
The Bank of Uganda further reported that the government spent Shs 193.757bln to print new currency notes in 2025, up from Shs 174.209bln in 2024. The report attributes the increase to the continued demand for high-quality currency and replacement of worn-out notes in circulation.
In the same period, the Bank spent Shs 9.803 billion to mint coins, slightly lower than the Shs 13.299 billion spent in 2024, owing to efficiency improvements in coin production and supply chain management.
“The Bank continues to ensure that there is an adequate and clean supply of currency in the economy while managing production and distribution costs efficiently,” the report states.
Overall, currency costs rose to Shs 212.6bln, compared to Shs 203.1bln the previous year. The Central Bank also spent Shs 26.2bln on financial and professional charges, including legal fees, consultancy, and reserve management costs.
Despite the increase in expenses, the Bank’s total expenditure remained 3 percent below its approved budget of Shs 706bln. The cost-to-income ratio stood at 44 percent, up from 40 percent in 2023/24, but still within the strategic target of 75 percent.
The report further reveals adjustments to the Bank’s loan portfolio. Loans and advances to government fell sharply to Shs 1.79 trillion from Shs 8.55trn, following the conversion of Shs 7.78trn in government obligations into a 10-year bond. The Central Bank also extended loans and advances to its staff amounting to Shs 114bln, up from Shs 100bln the previous year, while loans to executive management stood at Shs 3.8bln.
“The advances are given at preferential rates ranging from 0 percent to 3 percent as determined by the Board of Directors. The loans are payable for periods between one and twenty years,” the report explains.
The Bank earned Shs 43 million in interest on these loans, up from Shs 37mln in the previous year. On the liability side, accounts payable and other creditors totalled Shs 242.9bln, compared to Shs 262bln the previous year, reflecting payments related to suppliers, financial institutions, and pension obligations.
The Bank made repayments of Shs 28.2bln in legal settlements and other provisions during the year, while no dividend was declared to government for the second consecutive year. Despite a decline in net surplus to Shs 658.9bln from Shs 1.14trn the previous year, the Bank remains financially strong, with total assets rising by 21.5 percent to Shs 31.9 trillion and equity increasing to Shs 6.2trn.
Currency in circulation also grew to Shs 8.98 trillion by June 2025, up from Shs 8.2trn the previous year, driven by increased economic activity and seasonal cash demand.
The report underscores the Central Bank’s commitment to transparency and prudent financial management, emphasising that “every shilling spent supports the Bank’s mandate to maintain price stability and ensure a sound, resilient financial system for Uganda’s sustainable growth.”
“The Bank continues to operate within its financial means, ensuring effective management of costs, loans, and payments while fulfilling its mandate to maintain monetary and financial stability,” the report states.
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