# Uganda public debt and economic instability

> Live situation record from CLSTR: https://clstr.news/situations/uganda-public-debt-and-economic-instability
> Updated: 2026-09-23T16:56:31.000Z. Sources: 8. Developments: 2.

Uganda is experiencing significant economic strain driven by rising public debt and tightening liquidity. The Bank of Uganda has warned that the nation’s projected debt path may be at risk, noting that total public debt could reach approximately Shs158.6 trillion, or about 57.7% of non-oil GDP. The central bank has advocated for a broader definition of public debt to include Shs7.6 trillion in securitised arrears accumulated following the Covid-19 pandemic.

As debt reached UGX 143.92 trillion, the macroeconomic burden has begun to impact local traders and small businesses through increased taxation and rising utility costs. To manage inflationary pressures, the Bank of Uganda raised the cash reserve ratio to 13.5%, which has reduced circulating money and impacted the Treasury bond market. Recent auctions have seen rising yields, such as a 25-year bond recording a cutoff yield of 16.25%.

In response to these fiscal challenges, members of Uganda’s Parliamentary Committee on National Economy traveled to Nigeria for a training workshop. The program aims to enhance the capacity of lawmakers to scrutinize government borrowing, loan guarantees, and public expenditure.

## Timeline

### 2026-09-23: Uganda faces economic pressure from rising debt and tightening liquidity

Uganda faces economic pressure as public debt hits UGX 143.92 trillion, impacting local traders while rising yields and liquidity tightening affect the Treasury bond market.

2 sources. https://clstr.news/cluster/uganda-faces-economic-pressure-from-rising-debt-and-tightening-liquidity

### 2026-09-21: Uganda faces debt risks as lawmakers seek fiscal expertise in Nigeria

The Bank of Uganda warned of risks to the nation's Shs158.6 trillion debt path, while Ugandan lawmakers traveled to Nigeria to study sustainable borrowing and public expenditure management.

5 sources. https://clstr.news/cluster/uganda-faces-debt-risks-as-lawmakers-seek-fiscal-expertise-in-nigeria

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Cite as: Uganda public debt and economic instability. CLSTR, https://clstr.news/situations/uganda-public-debt-and-economic-instability