Stanbic Bank
Stanbic Bank
19.1 C
Kampala
Stanbic Bank
Stanbic Bank
Home Blog Page 61

Lending rates ease as credit growth strengthens in September

By
Francisco Adongo
-

Commercial lending rates in Uganda eased slightly in September 2025, according to the Performance of the Economy Monthly Report for October 2025.

The weighted average lending rate for shilling-denominated credit edged down to 18.45 percent in September 2025 from 18.46 percent in August 2025.

Meanwhile, the weighted average lending rate for foreign currency-denominated credit fell more noticeably, to 8.15 percent in September 2025, from 8.34 percent the previous month.

“Interest rates remained relatively stable on account of low and stable inflation, the Bank of Uganda’s decision to maintain the Central Bank Rate (CBR)at the same level as the previous month, and reduced risk as shown by the decline in the ratio of non-performing loans to total gross loans,” the report notes.

The report adds that the Bank of Uganda kept the CBR unchanged at 9.75 per cent in October 2025, marking the thirteenth consecutive month at this level. 

“This rate was considered appropriate to sustain price stability and anchor inflation around the 5 per cent target while supporting economic growth and socio-economic transformation,” it states.

According to the report, the stock of outstanding private sector credit grew by 1.0 percent to Shs24.29 trillion in September 2025, up from Shs24.05 trillion in August.

“This increase was observed in both shilling- and foreign currency-denominated credit, which rose from Shs17,417.05 billion and Shs6,631.18 billion in August 2025 to Shs17,481.48 billion and Shs6,805.94 billion respectively in September 2025,” the report says. 

It attributes the growth mainly to stronger demand for credit driven by improved economic activity and recent reductions in lending rates.

In September 2025, credit approved for disbursement totaled Shs2.12 trillion, out of a total of loan applications worth Shs2.8 trillion. “This represents an approval rate of 75.5 per cent, up from 61.8 per cent in August 2025, when loan applications totalled Shs2,874.4 billion and Shs1,777.5 billion was approved for disbursement,” the report states.

The improved performance is largely attributed to increased lending to manufacturing, trade, and the building, mortgage, construction, and real estate sectors, all key drivers of economic growth.

As in the previous month, Personal and Household Loans accounted for the largest share of credit disbursements, representing 25.6 percent [Shs544.05 billion] of total approved credit in September 2025.

Other major recipients included Trade at 23.0 percent [Shs487.92 billion], Manufacturing at 13.0 percent (Shs276.25bln, Business, Community, Social and Other Services at 10.6 percent (Shs223.89 billion), Building, Mortgage, Construction and Real Estate at 10.5 percent (Shs222.29 billion), and Agriculture at 9.6 percent (Shs204.56 billion)

Stories Continues after ad

Uganda’s recoverable oil reserves rise to 1.65 billion barrels

By
Simon Kabayo
-
Oil rig

Uganda’s petroleum sector has reported an increase in the country’s estimated oil and gas reserves, according to Ernest Rubondo, Executive Director of the Petroleum Authority of Uganda (PAU), a government agency that regulates the sector.

According to Rubondo, the latest assessments indicate that Uganda’s recoverable oil resources have increased to 1.65 billion barrels, up from the previous estimate of 1.4 billion barrels.

He noted that the growth is largely driven by updated evaluations of existing discoveries in the Albertine Graben, supported by an expanded and enhanced data portfolio from discovery and development areas.

“The Authority reviews technical data submitted by licensed oil companies and uses this information to estimate the country’s petroleum resource endowment. This process is carried out professionally using internationally recognised standards,” Rubondo said.

He added that the Tilenga, Kingfisher and East African Crude Oil Pipeline [EACOP] projects have reached advanced stages of completion, keeping Uganda on course to achieve First Oil in the second half of 2026.

“Uganda’s flagship projects Tilenga, Kingfisher and EACOP have now reached advanced stages of completion,” he said. “The progress is substantial, and Uganda remains firmly on track to achieve First Oil in the second half of 2026.”

The Kingfisher Development Project has marked a major milestone, with all 19 wells required for first oil fully drilled. Tilenga is now 97 percent complete, with 164 of the planned 170 wells drilled.

All line pipes for the 1,443-kilometre EACOP pipeline have been delivered, and more than 1,000 kilometres have already been welded. Overall progress currently stands at 60 percent for Tilenga, 74 percent for Kingfisher, and 75 percent for EACOP.

The Uganda Refinery Project is also progressing steadily following the signing of the Implementation Agreement in March 2025. Ongoing work includes finalizing the refinery design, conducting pre-commissioning studies, securing project financing, and operationalizing the fully incorporated Refinery Company.

To support the expanding resource base, PAU has established the National Petroleum Data Centre, which now hosts more than 60 terabytes of electronic data and thousands of physical samples. A planned Real-Time Monitoring Centre will enhance oversight of drilling, production and transportation activities, improving transparency, efficiency and safety.

PAU maintains that environmental protection and social responsibility remain top priorities. Uganda’s petroleum projects are among the least carbon-intensive globally and are designed to deliver net biodiversity gains. Social programmes have provided 475 modern houses for Project Affected Persons, while nearly 20,000 households now benefit from upgraded schools, health centres, water systems and local infrastructure under livelihood-improvement initiatives.

“The oil and gas sector has brought tangible improvements that communities can feel,” Rubondo said.

Local participation has also grown significantly. Of the $7 billion in approved contracts, $2.2 billion has been awarded to Ugandan companies. Nearly 20,000 Ugandans are directly employed in the sector, with more than 180,000 engaged indirectly.

Ugandans now hold 64 per cent of management roles, 85 per cent of technical positions and 99 per cent of support roles. More than 14,000 people have received vocational and technical training, and over 40 joint ventures have facilitated technology transfer.

“Over the last decade, PAU has grown into a strong regulator, ensuring that Uganda’s resources benefit its people,” Rubondo added.

If Uganda meets its target of commencing production in the second half of 2026, it will join other African oil-producing nations including Nigeria, Libya, Algeria, Egypt, Angola, the Republic of Congo, South Sudan, Ghana, and Gabon, among others.

Stories Continues after ad

Equity Bank, NARO unveil 5th golf open to celebrate 17 years of impact

By
Francisco Adongo
-
The Equity NARO Golf Open.

Equity Bank Uganda, in partnership with the National Agricultural Research Organization (NARO), has launched the fifth edition of the Equity NARO Golf Open on Monday.

The three-day tournament, which will run from November 27-29, will be held at the Mary Louise Simkins Memorial Golf Club in Namulonge.

This year’s event is themed “17 Years of Transforming Lives in Uganda,” marking 17 years of the bank’s impact and partnerships in the country’s financial sector. The open will gather golfers, corporate leaders, customers, and community partners for competition and networking.

Speaking during the launch at the nine-hole, par-70 Namulonge course, bank officials reaffirmed their commitment to supporting sports development and community engagement.

“This year’s Equity NARO Open is more than a tournament; it is a celebration of legacy, community and the power of nurturing talent,” said Claver Serumaga, executive director of Equity Bank Uganda. 

He added, “As we mark 17 years of serving Ugandans with transformational financial solutions, we are proud to stand with Namulonge Golf Club, a place that has shaped and inspired the country’s golfing talent for generations.”

Serumaga noted that the club, located within Uganda’s largest agricultural research center, has been a starting point for many of the nation’s top golfers.

To commemorate the anniversary, the 17th hole of the tournament will be symbolically marked as the Equity 17th Hole, representing the progress made alongside customers and communities over the 17 years.

The Mary Louise Simkins Memorial Golf Club has a strong reputation for cultivating emerging golf talent. It has recently hosted tournaments such as the Namulonge Ladies Open in May 2025 and the K&K Invitational Pro-Am in July 2025.

Top competitors expected to challenge for the trophy include Meron Kyomugisha, who won the 2022 Namulonge edition and the recent 27th Kinyara Golf Open.

Sheila Aine, Lady Captain of the Mary Louise Simkins Memorial Golf Club, expressed appreciation for the ongoing partnership.

“The Equity Namulonge Golf Open offers us an opportunity to showcase our beautiful course and to continue building and supporting women’s golf in Uganda,” Aine said.

Stories Continues after ad

Court summons former trade PS Geraldine Ssali over Shs3.8b fraud case

By
Simon Kabayo
-
Ms Geraldine Ssali

The Anti-Corruption Court has issued a criminal summons for former Trade Ministry Permanent Secretary Geraldine Ssali after she failed to appear for the mention of a Shs3.8 billion fraud case in which she is jointly charged with three Members of Parliament and other officials.

During Monday’s session, acting Assistant Registrar Patrick Talisuna issued the summons after the prosecution informed the court that Ssali had not communicated any reason for her absence. 

Senior State Attorney Raymond Mugisa told the court that all the accused persons were present except Ssali, prompting the state to request a criminal summons as they await communication from the Constitutional Court on a pending human rights application that affects the case.

The matter had been fixed for mention as the parties await a ruling on an application filed by Busiki County MP Paul Akamba, who seeks to have the charges dismissed on grounds that his rights were violated during his arrest and prosecution.

The Counsel holding brief for Ssali’s lawyer informed court that her surety, Kiwanuka, was present but did not give any explanation for Ssali’s absence.

During the session, lawyer Sydney Odong, representing MP Akamba, asked the court to set the next mention date after the general elections, owing to what is going on.

Registrar Talisuna later adjourned the matter to February 5, 2026, extending bail for all accused persons except Ssali and ordering that criminal summons be issued to compel her appearance.

Ssali is jointly charged with MPs Michael Mawanda, Ignatius Mudimi Wamakuyu, and Paul Akamba, along with lawyer Julius Taitankoko Kirya and former cooperative officer Leonard Kavundira. The group faces charges of abuse of office, conspiracy to defraud, money laundering, and causing financial loss linked to compensation funds meant for Buyaka Growers Co-operative Society.

Prosecution contends that during the 2021/2022 and 2022/2023 financial years, Ssali irregularly added Buyaka Growers Co-operative Society to the list of groups eligible for war-loss compensation, despite the society not appearing in the approved supplementary budget. She is further accused of authorising irregular payments amounting to Shs3.8 billion to Kirya and Company Advocates, a law firm owned by co-accused Taitankoko, under the guise of compensating war-loss claimants.

Stories Continues after ad

Museveni, Ruto launch Shs1.78t steel plant in Uganda

By
Simon Kabayo
-
Presidents Museveni and Ruto at the commissioning of the Devki Mega Steel project in Tororo.

Presidents Yoweri Museveni of Uganda and William Ruto of Kenya have launched a $500 (1.78 trillion UGX.million) Devki Mega Steel Plant in eastern Uganda hailing the facility as a major step toward the industrial liberation of Africa.

The vertically integrated steel facility, located in Kayoro village, Osukuru County, Tororo District, marks one of East Africa’s largest industrial investments. It is being developed by Kenyan industrialist Narendra Raval, chairman of the Devki Group.

Museveni framed the project as a historical reversal of centuries of African economic injustice.

“Today, with the groundbreaking ceremony of the Devki Mega Steel project in Tororo, alongside H.E. President William Ruto of Kenya, we are in the process of liberating Africa,” Museveni said.

He noted that for more than 500 years, the continent has suffered from exploitation that extracts raw materials without adding value. The steel plant, he said, will help reverse the trend of exporting African minerals and jobs.

“At full operationalization, we shall be one step closer to reversing the squandering of Africa’s resources human, mineral, jobs, and foreign exchange,” he added.

The facility is expected to employ 15,000 Ugandans at commencement across operations in Tororo and Mbarara, according to Raval. The industrialist said a majority of these jobs would come from the integrated steel operations and related activities supported by investments already made in the region and the upcoming iron ore refinery in Kabale.

Museveni thanked Ruto for encouraging Raval to invest in Uganda, acknowledging that regional collaboration is essential for collective prosperity. He also revealed that Raval plans another major iron ore project in Kabale, which is projected to create more than 16,000 jobs.

Museveni cautioned Ugandans against impeding the investment through compensation disputes, assuring the public that the government would handle necessary payments.

 “The man is going to invest $500 million here, so please don’t bother him about money for compensation. The government will handle that, ”he said. 

Ruto described the ceremony as more than the start of a factory, calling it a “bold new chapter” in Africa’s industrialization and the strengthening of regional value chains.

“We convene here not just to commission a factory, but to usher in a new, audacious chapter in Africa’s industrialization ambitions,” Ruto said.

He commended Museveni for championing regional integration, which he said enables large-scale projects like the steel plant to succeed. Ruto announced that Kenya would launch the next phase of its Standard Gauge Railway extension in January, which will eventually extend to Tororo to support manufacturing and lower transport costs.

Raval stressed that industrialization is the only path to prosperity, saying, “Importing steel is importing poverty. We must produce here, create jobs here, and empower the youth.” He pledged that 90 percent of the factory’s workforce would be Ugandans, drawing from the Tororo community and its surroundings.

First Deputy Prime Minister and Minister for East African Community Affairs Rebecca Kadaga called the project an important milestone for East Africa and evidence of deepening regional industrial integration. Energy Minister Ruth Nankabirwa described the event as landmark and historic, noting that the plant aligns with the government’s commitment to expanding industrial capacity.

Stories Continues after ad

King Saha proves he is a legend of Ugandan music

By
Our Reporter
-
King Saha.

On Friday, King Saha proved he is of legendary status in Uganda’s Music Industry after selling out his second Lugogo Cricket Oval concert to a mammoth crowd for the second time this year.

Following his successful show in January that drew thousands of fans, the much anticipated November edition was no different with excited fans starting to arrive at the venue by 1pm.

The ‘TikTok Life’ hit maker kicked off his performance with a rendition of smooth reggae songs, including ‘Don’t Cry’ by South African reggae legend Lucky Dube, before switching to ‘Mpa Love’, instantly locking in the crowd and setting the love celebration mood for the night.

The vocalist then delivered a powerful performance, taking revelers through his long catalog of hits with a powerful live band.

On stage, performances from artistes like Dax Vibez, Nina Roz, Mikie Wine, Kabako, The Baninas, Young Mulo, Coco finger, Sheebah, Pallaso, Mark D Urban, Ziza Bafana, Mudra and Spice Diane among others turned the show electric with fans vibing to every act on stage.

Following his performance of ‘Best Friend Wange’ with Spice Diana, he thrilled the crowd with his old time hits like Mulirwana, Gundeze, at which point he had them eating out of his hands as they sang along to every word.

During the show, Ziza Bafana also showcased his skills on the drums playing a few beats for King saha.

King Saha then took the crowd throughout the rest of the night with hits like Akamwanyi, as they sang word by word to each song he belted out.

King Saha also took time to sting the Eddy Kenzo led Uganda National Musicians Federation (UNMF), taunting them to finish it completely.

He crowned off the night with Tik Tok Life, Si lumbe, Nakyakala, before sampling several Bobi Wine songs, turning Lugogo cricket oval grounds into a frenzy.

With two major successful shows at one of the top venues in the country and backing of numerous hit songs that are still topping charts, King Saha has proven his star power this year.

King Saha is slated to perform at Summer Gardens Mukono on Saturday before proceeding to Mukisaawe in Kyotera District on Sunday.

Stories Continues after ad

Tension grips parts of Adjumani as locals attempt to occupy Zoka forest

By
Our Reporter
-
Security personnel inspecting Zoke Central Forest Reserve.

Tension gripped parts of Adjumani District this past week as security forces arrested over 60 individuals in a failed attempt to illegally enter and settle in Zoka Central Forest Reserve.

According to police, the group which reportedly numbered over 200 — was intercepted on Wednesday afternoon as they moved into the Acholi Bay section of the protected forest. The joint operation involved the Uganda Police Force, UPDF, and the Field Force Unit.

Authorities say the group was equipped with pangas, hoes, and other tools, suggesting they were prepared to clear land. Over 50 pangas, 10 hoes, and dozens of mobile phones were seized at the scene. Police believe the action was premeditated and organized.

SP Collins Asea, spokesperson for the North West Nile Region Police, confirmed that 10 individuals identified as ringleaders have been transferred to Adjumani Central Police Station for further investigation. “We are still hunting for others who managed to flee during the raid,” Asea told reporters.
While many of the suspects claimed they were reclaiming ancestral land, the area is legally designated as a Central Forest Reserve and is protected under the National Forestry and Tree Planting Act. Under Sections 37 and 38 of the Act, illegal entry or settlement into a forest reserve is a criminal offense punishable by a fine of up to Shs4 million or a prison sentence of up to two years.

Pangas recovered from the locals

Local leaders have condemned the invasion attempt, warning that such actions risk further environmental degradation. “We understand land pressures, but forest reserves are not up for grabs,” one official noted, urging residents to seek lawful avenues for land claims.

Environmentalists have long raised concerns over the rapid depletion of Uganda’s forests, with an estimated 90,000 hectares lost annually due to human encroachment, charcoal burning, and illegal logging.

The case has been officially registered as SD Ref 42/22/11/2025 at Adjumani CPS. Investigations continue as authorities prepare to prosecute those involved.

Stories Continues after ad

Two illegal guns recovered in Arua

By
Our Reporter
-
The two illegal guns recovered in Arua.

Arua City, Uganda. Security forces have recovered two illegal firearms and arrested two suspects in separate incidents in Arua City, in what authorities are describing as a continued effort to clamp down on illicit arms and rising urban crime in West Nile.

The arrests, confirmed over the weekend, followed intelligence-led operations conducted by a joint security team operating in Ayivu East and Ayivu West Divisions.

In the first incident, 46-year-old Atabua Patrick, a boda boda rider from Maracha Cell in Ayivu East, was apprehended after police received a tip-off about an alleged plan to ambush a delivery vehicle transporting beer to Odramacaku Trading Centre. Upon arrest, Atabua was found in possession of an AK-47 assault rifle with serial number 052956-2956 and 50 rounds of live ammunition.

The second suspect, identified as Asiimwe Bension, was intercepted on November 2 at a fuel station in Arua Central Division. Security operatives discovered an AK-47 rifle with serial number A83110111 and two loaded magazines in his possession as he attempted to board a vehicle bound for Kampala.
West Nile Police spokesperson SP Josephine Angucia praised the cooperation between residents and law enforcement, saying community vigilance played a critical role in averting potential violence. “We commend the public for giving us credible leads. Such collaborations are vital in maintaining peace,” she said.

The recovered firearms are currently being held at Arua Central Police Station as part of the ongoing investigation. Authorities said the two suspects are being charged under illegal possession of firearms, and efforts are underway to trace the origins of the weapons and any associated criminal networks.

Local leaders and residents have welcomed the arrests but expressed concern over the growing reports of firearms being smuggled into urban communities. Some fear that political tensions and porous border routes may be contributing to the problem.

Security agencies have reiterated their warning to individuals illegally possessing firearms to voluntarily surrender them before being forcefully disarmed. The operation is part of a broader regional security initiative to disrupt gun-related violence ahead of anticipated political activities.

The police have registered the incidents under CRB 832/2025 at the Arua CPS. Further investigations remain ongoing.

Stories Continues after ad

EC extends application deadlines for biometric voter kit trainers and operators ahead of 2026 elections

By
Simon Kabayo
-
The Biometric Voter Verification Kit.

The Electoral Commission has extended the application deadlines for the Biometric Voter Verification Kit (BVVK) Trainer and Operator positions, giving Ugandans more time to submit their documents for the short-term election roles.

EC spokesperson Julius Mucunguzi confirmed the development, saying the Commission had received several requests for more time and assessed that an extension would promote fairness and wider participation.

“We have extended the deadlines to ensure that every eligible Ugandan who wishes to serve has adequate time to submit a complete application,” Mucunguzi explained. 

He noted that the Commission wants as many qualified applicants as possible, given the central role BVVK personnel will play in the 2025/2026 General Elections.

He added that the Commission made the decision in the spirit of transparency and inclusiveness. “These positions are critical for the success of the Biometric Voter Verification System, and extending the dates allows applicants to attach all required documents without pressure,” he said.

According to the new schedule, applications for BVVK Trainer positions will now close on Tuesday, November 25, 2025, while BVVK Operator applications will close on Friday, November 27, 2025. Initially, both categories were expected to end on 21 November.

The Electoral Commission is recruiting 1,050 BVVK Trainers who will be deployed at district levels to train operators, prepare learning materials, conduct simulations, and offer technical support during polling. Trainers will be required to guide BVVK users, simplify technical concepts, troubleshoot devices and ensure readiness of the biometric equipment before and during voting.

For BVVK Operators, the Commission is looking for candidates who will handle voter verification at polling stations, manage two BVVK devices, scan ballots, support opening and closing of polling stations, and maintain high standards of data integrity and equipment security. Each operator will report directly to the Presiding Officer at their assigned polling station.

Mucunguzi urged applicants to follow submission guidelines carefully and deliver their applications to the respective District Election Administrators before the new deadlines. 

“We encourage all interested Ugandans to hand-deliver their applications to avoid errors or incomplete submissions. Shortlists will be displayed at district offices, and we shall not consider late applications,” he said.

He reaffirmed that the Commission remains committed to equal opportunity employment and professionalism as it prepares for the 2026 elections. “These extensions are meant to ensure no one is left out due to time limitations. We want this process to reflect integrity from start to finish,” Mucunguzi added.

Stories Continues after ad

Treasury bills auction attracts Shs567b as investor demand surges

By
Francisco Adongo
-

Uganda’s domestic debt market continues to heat up, with the latest Treasury Bills auction attracting overwhelming investor interest and confirming growing confidence in government securities as a safe and lucrative investment option.

In Auction No. 1218 held on November 19, 2025, the Bank of Uganda reported an extraordinary Shs567.1 billion in total bids, more than seven times the Shs75 billion on offer, making it one of the most aggressively oversubscribed T-bill auctions this year.

The 364-day tenor dominated the auction, pulling in a staggering Shs426.97 billion as pension funds, insurance firms, fund managers, and commercial banks shifted their liquidity toward longer-dated positions to lock in favorable yields. 

The central bank accepted Shs274.7 billion for this maturity, reflecting the government’s ongoing preference for longer-term domestic financing to reduce short-term refinancing pressure.

The shorter tenors also maintained strong traction. The 182-day bill received Shs88.21 billion in bids, while the 91-day bill attracted Shs51.89 billion, with competitive bidding forming the bulk of submissions an indication of heightened market participation and expectation of stable returns.

Yields across the auction remained attractive. The 91-day bill posted a 10.705% discount rate, translating into a money market yield of 10.999% and an effective annual yield of 11.461%. 

Analysts say the yield environment continues to reflect tight monetary conditions, with the central bank maintaining a cautious stance to manage inflationary pressures and stabilize the shilling.

Market watchers attribute the strong appetite for government paper to a combination of factors, including improved market liquidity, limited high-return investment alternatives, and heightened risk aversion amid global financial uncertainty.

“Investors have maintained a strong preference for risk-free government securities, especially as global markets remain volatile and domestic liquidity improves toward the year’s close,” a senior market analyst noted.

The auction also demonstrated impressive bid-to-cover ratios—3.928 for the 91-day and 3.095 for the 364-day highlighting the sustained depth of demand for Uganda’s sovereign debt.

In total, the government accepted Shs314 billion across all maturities, providing a significant injection of short-term financing needed to support fiscal operations as the country prepares to enter the 2026 economic cycle. The performance reinforces the Treasury Bills market as a critical pillar of Uganda’s domestic borrowing strategy and a key barometer of investor sentiment.

Economists argue that if the current momentum continues, Uganda’s domestic debt strategy may see more reliance on longer-dated securities to smoothen the maturity profile and reduce rollover risks particularly as the country navigates expenditure pressures and election-year dynamics.

Stories Continues after ad
1...606162...2,404Page 61 of 2,404

© Eagle Online. All rights reserved.

About Us

Popular Category

Editor Picks