KAMPALA, October 30, 2026 — Stanbic Bank Uganda Limited, the country’s largest bank by total assets, has raised its Uganda shilling prime lending rate to 21.75 percent per annum, effective December 2026, from 19.5 percent.
The increase follows the Bank of Uganda’s decision to raise the Central Bank Rate [CBR] to 12 percent from 9.75 percent as the Central Bank moves to contain inflationary pressures.
According to Stanbic Bank Uganda, its local currency Mortgage Reference Rate [MRR] will also increase to 19 percent per annum from 17.5 percent, effective on the same date.
“The adjustment is in response to prevailing market conditions and the change in the Central Bank Rate from 9.75% to 12%. The revised rates will apply to Uganda shilling credit facilities for both existing and new borrowers,” the bank said in a notice published in one of the daily newspapers.
The Bank of Uganda raised the CBR in October, citing the need to contain rising inflation risks and prevent higher fuel costs and a weaker shilling from feeding into prices across the economy.
Stanbic Bank’s increase in its prime lending rate is expected to put further pressure on borrowing costs, with other local commercial banks potentially following suit by reviewing their lending rates upwards.
The move comes amid continued pressure on the Uganda shilling, which has weakened against the US dollar due to increased demand for foreign currency, higher oil and shipping costs, lower export earnings, declining tourism receipts and reduced foreign investment inflows.
According to the Finance Ministry’s Performance of the Economy Monthly Report for September 2026, the average weighted lending rate on shilling-denominated loans rose to 17.90 percent in August from 17.32 percent in July.
The ministry attributed the increase to growing inflationary pressures, which have continued to affect the cost of credit in the economy.
https://thecooperator.news/uganda-private-sector-growth-slows-in-september-as-stanbic-pmi-falls/
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