Uganda’s government is seeking parliamentary approval to borrow an additional Shs8.28 trillion (approximately $2.2 billion) from both domestic and international lenders, a move that could further inflate the country’s already growing public debt.
The proposed loans, set for consideration on Monday, come as fresh data from the Ministry of Finance indicates that Uganda’s total public debt had risen to Shs116.2 trillion ($32.3 billion) by June 2025, an increase of 26.2% over the previous year.
According to government documents, the new borrowing will finance key infrastructure and social development projects. The largest portion, about $1.34 billion in loans and $328.3 million in grants, is expected from the World Bank Group’s International Development Association (IDA). These funds will support the fourth phase of the Northern Uganda Social Action Fund (NUSAF IV), the second phase of the Development Response to Displacement Impacts Project (DRDIP II), and the Uganda Cities and Municipalities Infrastructure Development (UCMID) Program.
Citibank is also expected to extend two separate loans totaling $436.4 million to boost agricultural development and improve key road networks. Of this, $212 million (approximately Shs789.15 billion ) will go toward the first phase of a project to enhance agricultural production and quality, while $252.7 million (Shs941.46 billion ) will fund the design and construction of the Jinja–Mbulamuti–Kamuli–Bukungu Road, as well as roads within Jinja City.
Another $508.5 million is being sought from Standard Chartered Bank to support major infrastructure projects. This includes $376 million (Shs1.39 trillion ) for the construction of the 400kV Karuma–Tororo double circuit transmission line, and $125 million (Shs473.06 billion ) for the construction of roads in Ntoroko District, part of the national oil roads package.
The timing of these loan requests is significant, coming just days before parliamentary nominations scheduled for October 22–23. Parliament had earlier approved a Shs72.376 trillion national budget for the 2025–26 financial year, which included plans to borrow Shs32.075 trillion —equivalent to 44.3% of the total budget.
John Bosco Ikojo, chairperson of Parliament’s Committee on National Economy, confirmed that Speaker Anita Among had instructed his committee to urgently consider the requests even as the House remains in recess.
“I received administrative communication from the Speaker on October 14 to process the loan requests pending a full presentation to lawmakers upon resumption,” Ikojo said.
