Uganda’s total public debt has risen to about Shs130 trillion, according to the latest government report, highlighting continued reliance on domestic borrowing and increased loan commitments to finance development projects.
Figures released by the Ministry of Finance, Planning, and Economic Development show that the country’s debt stock grew from $34.21 billion (Shs128.6 trillion) in September 2025 to $34.86 billion (about Shs130.8 trillion) by the end of December 2025.
The details are contained in the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for December 2025, published by the ministry.
“The total public debt stock increased to $34.86 billion (Shs130.943 trillion) by the end of December 2025, up from $34.21 billion (Shs128.648 trillion) at the end of September 2025,” the report states.
It adds that domestic debt accounted for the largest share of the total debt portfolio.
“Domestic debt accounted for 54.5 percent of this total debt, equivalent to $19.02 billion or Shs68.86 trillion, while external debt made up 45.3 percent, equivalent to $15.84 billion or Shs57.33 trillion. This quarterly increase stemmed mainly from increased domestic debt issuances,” the report notes.
Despite the increase in overall debt, the government said spending on servicing domestic debt declined during the period under review.
According to the ministry, expenditure on domestic debt servicing fell by Shs916 billion, dropping from Shs3.913 trillion in September 2025 to Shs2.997 trillion by December 2025.
The report also shows that Uganda’s undisbursed loans increased during the same period, indicating a growing pipeline of projects awaiting funding.
“Uganda’s undisbursed debt increased from $3.36 billion (Shs12.606 trillion) in September 2025 to $3.74 billion (Shs14.032 trillion) by the end of December 2025,” the report states.
“Over the quarter, undisbursed debt from private and multilateral creditors increased from $0.02 billion to $0.14 billion, and from $2.64 billion to $2.99 billion, respectively, while that from bilateral creditors declined from **$0.71 billion to $0.61 billion,” the report adds.
The ministry attributed the increase largely to new loans contracted during the quarter.
“This quarterly rise in undisbursed external debt stems from new loans recorded within the quarter, including the Education in Biomedical Sciences loan from the African Development Fund (ADF), a trade finance line of credit from BADEA, the Resilient Livestock loan from IFAD, and the fourth line of credit to UDBL loan from the OPEC Fund, among others,” the report states.
The analysis further reveals that multilateral institutions remain Uganda’s biggest external lenders, accounting for 65.13 percent of the country’s external debt, equivalent to about $10.32 billion.
According to the ministry, the largest portion of this debt is owed to institutions such as the International Development Association, International Monetary Fund, and the African Development Fund.
“The major multilateral creditors, IDA, IMF, and AfDF collectively hold the largest share of Uganda’s external debt stock, equivalent to 54.7 percent of the external debt portfolio,” the report notes.
Among bilateral creditors, the Export–Import Bank of China and UK Export Finance are the largest lenders to Uganda, holding $2.1 billion and $0.39 billion, respectively.
For private creditors, the report shows that Stanbic Bank Uganda leads with a holding of US$0.82 billion.
The ministry also revealed that most of Uganda’s external debt is denominated in US dollars, which accounts for 46 percent of the portfolio ($7.28 billion). The Euro follows this at 35 percent ($5.53 billion), the Chinese Yuan at 8 percent ($1.31 billion), and the Japanese Yen at 6 percent ($0.86 billion).
Meanwhile, the report indicates that Uganda’s external debt repayment obligations increased during the second quarter of the 2025/26 financial year.
According to the ministry, the country spent $416.62 million (about Shs1.563 trillion) on servicing external debt during the quarter, up from $381.52 million in the previous quarter.
“The increase in external debt service was attributed to higher principal repayments and fees during the period, ”the report states.
