KAMPALA, March 16, 2026 — Uganda’s public debt has risen to approximately Shs 131 trillion, up from Shs 128.6 trillion recorded in September 2025, according to the latest report from the Ministry of Finance, Planning and Economic Development [MOFPED].
The figures are contained in the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for December 2025 published by the ministry on its website.
“The total public debt stock increased to US$ 34.86 billion [Shs 130.943 trillion] by the end of December 2025, up from US$ 34.21 billion [Shs 128.648 trillion] at the end of September 2025,” the report states.
Domestic debt accounted for 54.5 percent of the total debt, equivalent to US$ 19.02 billion or Shs 68.86 trillion, while external debt constituted 45.3 percent, equivalent to US$ 15.84 billion or Shs 57.33 trillion. The ministry attributed the quarterly increase largely to higher domestic debt issuances.
Debt-to-GDP ratio rises
By the end of December 2025, the nominal value of public debt as a percentage of GDP stood at 52.7 percent, up from 52.4 percent recorded in September 2025.
Of the 52.7 percent, domestic debt accounted for 28.8 percent of GDP, while external debt represented 24.0 percent.
Nominal external debt as a share of GDP declined slightly from 24.3 percent to 24.0 percent, largely due to stronger GDP growth outpacing the accumulation of external debt and slower loan disbursements.
However, committed but undisbursed debt increased from US$ 3.36 billion in September 2025 to US$ 3.74 billion by December 2025.
In contrast, domestic debt as a percentage of GDP increased from 28.1 percent to 28.8 percent, as domestic borrowing grew faster than GDP.
External debt stock
According to the report, the external debt stock disbursed and outstanding declined slightly from US$15.89 billion in September 2025 to US$ 15.84 billion in December 2025.
The report attributes the reduction mainly to principal repayments amounting to US$ 315.2 million, as well as exchange rate variations, which outweighed new disbursements of US$ 302.7 million during the period.
Undisbursed external debt
The report shows undisbursed external debt increased from US$3.36 billion in September 2025 to US$3.74 billion by the end of December 2025.
During the quarter, undisbursed debt from private creditors rose from US$ 0.02 billion to US$0.14 billion, while that from multilateral creditors increased from US$ 2.64 billion to US$2.99 billion.
However, undisbursed debt from bilateral creditors declined from US$ 0.71 billion to US$ 0.61 billion.
The increase was attributed to new loans recorded during the quarter, including the Education in Biomedical Sciences loan from the African Development Fund [ADF], a trade finance line of credit from BADEA, the Resilient Livestock loan from IFAD, and the fourth line of credit to Uganda Development Bank Ltd [UDBL] from the OPEC Fund, among others.
Credit composition
Multilateral creditors remain the largest holders of Uganda’s external debt, accounting for 65.13 percent of the stock equivalent to US$ 10.32 billion, says the report.
Major multilateral lenders — including the International Development Association [IDA], International Monetary Fund [IMF], and African Development Fund [AfDF] — collectively account for 54.7 percent of Uganda’s external debt portfolio.
Among bilateral creditors, Exim Bank of China and UK Export Finance [UKEF] are the largest, holding US$2.1 billion and US$ 0.39 billion respectively.
For private creditors, Stanbic Bank holds the largest share at US$0.82 billion.
Concessional vs commercial debt
The largest portion of Uganda’s external debt consists of concessional loans, which stood at 55.30 percent [US$ 8.76 billion] as of December 2025.
Between September and December 2025, the share of concessional debt increased slightly from 54.83 percent to 55.30 percent, largely due to increased disbursements from lenders such as the World Bank, African Development Fund, and Islamic Development Bank.
During the same period, non-concessional debt declined from 5.46 percent to 5.27 percent, while semi-concessional debt fell from 19.73 percent to 19.44 percent.
However, commercial debt rose marginally from 19.97 percent to 19.98 percent, following the disbursement of EUR 230 million in commercial budget financing from Ecobank.
Interest rate structure
Debt contracted at fixed interest rates accounted for 66 percent of the total external debt stock, equivalent to US$10.43 billion.
Meanwhile, variable interest rate debt constituted 21 percent [US$ 3.40 billion], while debt with no interest rate accounted for 13 percent [US$ 2.01 billion].
Among bilateral lenders, China held the largest share of variable rate debt at US$717.3 million.
Commercial creditors also contributed significantly, including Standard Bank with US$ 817.8 million and Afreximbank with US$ 632.08 million, while the African Development Bank accounted for US$ 387.29 million.
External debt servicing increases
During the second quarter of FY2025/26, total external debt service rose to US$ 416.62 million, up from US$ 381.52 million in the previous quarter.
The increase was mainly driven by higher principal repayments and fees during the period.
Domestic debt stock rises
Uganda’s domestic debt stock at cost increased from Shs 63,936 billion in September 2025 to Shs 68,856 billion in December 2025.
The growth was largely driven by a 7.1 percent increase in Treasury bills, which rose from Shs 7,954 billion to Shs 8,680 billion, as well as an increase in Treasury bonds from Shs 55,983 billion to Shs 59,669 billion.
Domestic borrowing increases
Between October and December 2025, the government raised Shs 7,222 billion through the issuance of securities, which was Shs 1,165 billion more than the amount raised in the previous quarter ending September 2025.
The increase was attributed to frontloading financing requirements to support key government activities.
Of the total issuances, Shs 2,104 billion [29.1 percent] were Treasury bills, down from 44.4 percent in the previous quarter.
The remaining Shs 5,118 billion [70.9 percent] were Treasury bonds, which have maturities exceeding one year.
Borrowing costs rise
Compared with the quarter ending September 2025, average yields in the primary market rose by 0.6 percent by the end of December 2025 across all instruments.
The upward shift in the yield curve was largely attributed to increased Net Domestic Financing [NDF] and tight liquidity conditions in the market, which pushed borrowing costs higher.
Domestic debt servicing declines
Despite rising domestic borrowing, total domestic debt service fell by Shs 916 billion to Shs 2,997 billion in the second quarter of FY2025/26, down from Shs 3,913 billion in the previous quarter.
The reduction was largely due to lower discount costs on Treasury instruments, which fell to Shs 189 billion, and reduced interest payments on Treasury bonds, which declined to Shs 1,015 billion from Shs 1,138 billion.
Holders of government securities
According to the report, pension and provident funds have overtaken commercial banks as the largest holders of government securities.
This shift is largely attributed to the increased issuance of long-term Treasury bonds, particularly the 25-year instrument, which are typically preferred by pension and provident funds.
Although holdings increased across all investor categories due to higher domestic borrowing, the proportion held by the Bank of Uganda declined during the review period.
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