Kampala — Uganda’s total public debt increased by 14.8% year-on-year to $37.1 billion in June 2026, as the government stepped up domestic borrowing to finance its budget deficit, according to the finance ministry.
The debt stock rose from $32.3 billion a year earlier, while public debt as a share of GDP increased to 54.3%, compared with 51.3% in June 2025. External debt accounted for 43.9% of the total.
Domestic Borrowing Drives Increase
The finance ministry said the rise was mainly driven by increased issuance of domestic Treasury securities during the financial year ended in June.
Uganda has increasingly focused on longer-term domestic borrowing to fund development projects and reduce the risks associated with having to refinance or roll over debt frequently.
The government introduced a 25-year Treasury bond last year, the longest maturity among its domestic debt instruments, as part of efforts to extend the maturity profile of its debt portfolio.
Debt pressures draw scrutiny
The increase comes amid concerns over Uganda’s growing debt burden and the cost of servicing it.
Fitch affirmed Uganda’s sovereign rating at “B” with a stable outlook in August, while noting that rising public debt and a high interest burden constrain the country’s rating.
Source: Reuters
Reporting: Elias Biryabarema
Editing: Clarence Fernandez
