Uganda’s public debt hits UGX130 trillion as domestic borrowing climbs

KAMPALA – Uganda’s total public debt stock has risen to UGX130.844 trillion (US$34.86 billion) by the end of December 2025, up from UGX128.648 trillion (US$34.21 billion) recorded in September 2025, the Ministry of Finance has revealed.

The figures are contained in the ministry’s Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for December 2025, which shows that domestic borrowing remains the key driver of the increase.

“Total public debt stock increased to US$34.86 billion (UGX130.943 trillion) by the end of December 2025, up from US$34.21 billion (UGX128.648 trillion) at the end of September 2025. Domestic debt accounted for 54.5% of this total, equivalent to US$19.02 billion or UGX68.86 trillion, while external debt made up 45.3%, equivalent to US$15.84 billion or UGX57.33 trillion. This quarterly increase stemmed mainly from increased domestic debt issuances,” the report reads.

Who holds Uganda’s debt?

The ministry report provides a breakdown of Uganda’s creditors. Multilateral institutions hold the largest share of the country’s external debt, accounting for 65.13%, equivalent to US$10.32 billion. The main multilateral creditors are the International Development Association (IDA), the International Monetary Fund (IMF), and the African Development Fund (AfDF), which together hold 54.7% of the external debt portfolio.

Among bilateral creditors, Exim Bank of China and the UK Export Finance (UKEF) are the largest, holding US$2.1 billion and US$0.39 billion, respectively. Private creditors are led by Stanbic Bank, with a holding of US$0.82 billion as of December 2025.

Debt service and undisbursed loans

The bulletin also shows a decrease in Uganda’s domestic debt service over the quarter. Expenditure on domestic debt dropped by UGX916 billion to UGX2.997 trillion, down from UGX3.913 trillion in September 2025.

Meanwhile, undisbursed debt rose from US$3.36 billion (UGX12.606 trillion) in September 2025 to US$3.74 billion (UGX14.032 trillion) by December 2025. The increase stemmed from new loans from private and multilateral sources, while bilateral undisbursed debt fell slightly.

“Over the quarter, undisbursed debt from private and multilateral creditors increased from US$0.02 billion to US$0.14 billion, and from US$2.64 billion to US$2.99 billion respectively, while those from bilateral creditors declined from US$0.71 billion to US$0.61 billion,” the report reads.

The rise in undisbursed external debt reflects new loans recorded during the quarter, including the Education in Biomedical Sciences loan from AfDF, a Line of Credit for trade finance from BADEA, the Resilient Livestock loan from IFAD, and the 4th Line of Credit to UDBL loan from OPEC Fund, among others.

Implications

Analysts say the data highlights Uganda’s growing reliance on domestic borrowing to finance its budget, even as external loans continue to play a major role. While domestic debt service fell, total debt remains high, raising questions about sustainability and the country’s fiscal space.

“While it is good that domestic debt service reduced this quarter, the overall debt stock continues to climb, which could impact future borrowing capacity and budget priorities,” said an economist familiar with the report.

The Ministry of Finance says it will continue monitoring public debt closely, ensuring that borrowing aligns with government priorities and economic growth targets.