Archival Sense
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- Dec 16, 2025
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The Ministry of Finance, Planning and Economic Development has revealed that Uganda’s public debt has now surpassed UGX130 trillion, reflecting a continued rise in the country’s borrowing levels over the last quarter of 2025.
According to the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for December 2025, the total public debt stock increased from USD34.2 billion (UGX128.7 trillion) at the end of September 2025, to USD34.9 billion (about UGX130.9 trillion) by the end of December 2025. The report indicates that domestic debt accounted for 54.5% of this total debt equivalent to USD 19 billion or UGX 68.9 trillion, while external debt made up 45.3% equivalent to USD15.8 billion or UGX57.3 trillion. This means that more than half of Uganda’s debt burden currently comes from domestic sources such as treasury bills and bonds issued within the country.
The ministry explained that the increase during the quarter was mainly attributed to higher domestic debt issuances, which are often used by the government to finance budget deficits and fund ongoing public expenditure.
Despite the rise in overall debt levels, the ministry noted a decline in domestic debt servicing costs over the same period. The report shows that government expenditure on servicing domestic debt dropped by UGX916 billion, decreasing from UGX3.9 trillion in September 2025 to UGX2.997 trillion by December 2025.
The report also highlighted changes in Uganda’s undisbursed debt, which refers to loans that have been approved but whose funds have not yet been fully released. According to the ministry, undisbursed debt increased from USD3.4 billion (UGX12.6 trillion) in September 2025 to USD3.8 billion (UGX14 trillion) by the end of December 2025.
The increase was largely attributed to new loan commitments secured during the quarter from various international financial institutions.
Several new financing arrangements contributed to the rise in undisbursed external debt. These include funding for projects such as the Education in Biomedical Sciences loan from the African Development Fund, a trade finance line of credit from the Arab Bank for Economic Development in Africa, the Resilient Livestock programme financed by the International Fund for Agricultural Development, and a fourth line of credit to Uganda Development Bank from the OPEC Fund.
Government officials say such loans are intended to support key sectors of the economy including education, agriculture, trade financing and development banking.
However, the continued rise in Uganda’s public debt remains a subject of debate among economists and policy analysts, many of whom have raised concerns about long-term debt sustainability and the pressure that repayment obligations could place on the national budget. The Ministry of Finance has in previous statements maintained that the country’s debt remains within manageable levels and that borrowing is largely directed toward financing development projects aimed at stimulating economic growth.
According to the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for December 2025, the total public debt stock increased from USD34.2 billion (UGX128.7 trillion) at the end of September 2025, to USD34.9 billion (about UGX130.9 trillion) by the end of December 2025. The report indicates that domestic debt accounted for 54.5% of this total debt equivalent to USD 19 billion or UGX 68.9 trillion, while external debt made up 45.3% equivalent to USD15.8 billion or UGX57.3 trillion. This means that more than half of Uganda’s debt burden currently comes from domestic sources such as treasury bills and bonds issued within the country.
The ministry explained that the increase during the quarter was mainly attributed to higher domestic debt issuances, which are often used by the government to finance budget deficits and fund ongoing public expenditure.
Despite the rise in overall debt levels, the ministry noted a decline in domestic debt servicing costs over the same period. The report shows that government expenditure on servicing domestic debt dropped by UGX916 billion, decreasing from UGX3.9 trillion in September 2025 to UGX2.997 trillion by December 2025.
The report also highlighted changes in Uganda’s undisbursed debt, which refers to loans that have been approved but whose funds have not yet been fully released. According to the ministry, undisbursed debt increased from USD3.4 billion (UGX12.6 trillion) in September 2025 to USD3.8 billion (UGX14 trillion) by the end of December 2025.
The increase was largely attributed to new loan commitments secured during the quarter from various international financial institutions.
Several new financing arrangements contributed to the rise in undisbursed external debt. These include funding for projects such as the Education in Biomedical Sciences loan from the African Development Fund, a trade finance line of credit from the Arab Bank for Economic Development in Africa, the Resilient Livestock programme financed by the International Fund for Agricultural Development, and a fourth line of credit to Uganda Development Bank from the OPEC Fund.
Government officials say such loans are intended to support key sectors of the economy including education, agriculture, trade financing and development banking.
However, the continued rise in Uganda’s public debt remains a subject of debate among economists and policy analysts, many of whom have raised concerns about long-term debt sustainability and the pressure that repayment obligations could place on the national budget. The Ministry of Finance has in previous statements maintained that the country’s debt remains within manageable levels and that borrowing is largely directed toward financing development projects aimed at stimulating economic growth.
