Uganda’s public debt stock is expected to rise significantly in the 2025/26 financial year, Minister of Finance Matia Kasaija announced during the reading of the Shs 72 trillion national budget.
According to Kasaija, the public debt is projected to reach USD 31.5 billion (Shs 116 trillion) by the end of June 2025. Of this, external debt will account for USD 15.49 billion (Shs 56.3 trillion), while domestic debt is projected at USD 16 billion (Shs 59.77 trillion).
“Our public debt is estimated at 51.26 percent of GDP, which remains within the limits set by the Charter of Fiscal Responsibility,” Kasaija said.
As of June 30, 2024, Uganda’s total public debt stood at USD 25.6 billion (Shs 94.9 trillion), with external debt comprising Shs 54.3 trillion and domestic debt Shs 40.6 trillion.
Uganda’s debt burden has grown steadily over the past 15 years—from USD 1.9 billion (Shs 7 trillion) in the 2008/09 financial year to USD 25.6 billion in 2023/24.
In the upcoming financial year, the government plans to borrow an additional Shs 20 trillion. Of this, Shs 11.38 trillion will come from domestic sources, and Shs 11.33 trillion from external financing for projects, including Shs 2.8 trillion in grants.
The increase in borrowing is largely attributed to strategic infrastructure investments. These include the development of oil and tourism roads, water supply systems, health infrastructure, industrial parks, hydropower projects, the expansion of Entebbe and Kabalega (Kabaale) International Airports, and the National CCTV Project, among others.
Despite the rising debt levels, the government maintains that Uganda’s public debt remains sustainable in both the medium and long term. This outlook is supported by robust economic growth, prudent borrowing strategies, increased domestic revenue, and improved resource allocation and utilization.
However, debt servicing continues to weigh heavily on public finances. In FY 2023/24, the country spent approximately one-third of its total domestic revenue—amounting to Shs 8.76 trillion—on debt repayments.
