Uganda recorded strong gains in formal employment, business activity and financial markets in February 2026, even as environmental concerns intensified with worsening air quality in Kampala, according to the latest Microeconomic Indicators and Developments report released by the Ministry of Finance, Planning and Economic Development.
The report paints a picture of a steadily expanding economy, driven by increased formalisation of jobs, rising investor confidence and sustained government reforms aimed at improving the business environment.
“The number of migrant workers captured by the Immigration Department increased by 14.7 percent from 3,455 in January to 3,962 in February 2026,” the Ministry noted.
Formal employment registered the most significant growth during the period. “Formal employment returns, as captured under the PAYE Register, increased by 47 percent from 596,195 employees in January 2026 to 873,507 employees in February 2026,” the report states.
This upward trend is further reflected in social security enrolment, with the National Social Security Fund recording a sharp rise in contributors. “The number of members subscribing to NSSF increased by 47 percent from 2.45 million in FY2023/24 to 3.6 million in FY2024/25,” the Ministry said, underscoring the impact of ongoing formalisation efforts.
Uganda’s business landscape also experienced notable growth. New business registrations rose by 52 percent, from 2,464 in January to 3,746 in February 2026, while the Uganda Securities Exchange All Share Price Index climbed by 10.3 percent, signalling improved activity in capital markets.
According to the Ministry, these gains are supported by deliberate policy interventions. “Government has strengthened legal and regulatory frameworks and promoted digital registration systems to enhance efficiency, reduce costs and improve access to services,” the report explains.
Key among these initiatives is the nationwide mass registration campaign, KiriEasy, which aims to register over 235,000 businesses in the current financial year. The establishment of the Uganda Business Facilitation Centre in Kololo has also streamlined licensing and investment processes for businesses.
However, the report highlights emerging pressures on household welfare. Food and non alcoholic beverage inflation rose by 0.8 percent in February, reversing the decline recorded in January, while energy, fuels and utilities inflation increased by 0.6 percent.
Household consumption expenditure also declined slightly, dropping from Shs 43.1 trillion in the first quarter of FY2025/26 to Shs 42.4 trillion in the second quarter, pointing to cautious consumer spending amid rising costs.
Environmental concerns were also prominent. “Air quality in Kampala deteriorated, with particulate matter increasing by 9.15 percent from 29.5 micrograms per cubic metre in January to 32.2 micrograms per cubic metre in February 2026,” the Ministry reported, attributing the trend to hot and dry weather conditions experienced across much of the country.
On a positive note, health indicators improved, with malaria prevalence declining significantly. The report shows a 34 percent reduction in malaria related deaths, from 2.3 per 1,000 persons in January to 1.5 in February.
Uganda’s external sector also showed resilience, with the trade deficit narrowing by 28.6 percent, largely driven by increased gold exports and oil re exports. Export earnings grew modestly by 2.1 percent in the second quarter of the financial year.
Looking ahead, the Ministry projects continued growth in business registrations and private sector activity, supported by digitalisation, lower compliance costs and improved service delivery.
“Business registrations in Uganda are expected to increase modestly, driven by reforms that enhance efficiency and expand access to coordinated services,” the report read.
