Uganda’s Public Debt Jumps 26%, Driven by Domestic Borrowing

Kampala, Uganda — Uganda’s public debt has surged by 26.2% in the 2024/25 financial year, rising from US$25.6 billion to US$32.3 billion, according to figures released by the Ministry of Finance.

The increase is largely attributed to a sharp rise in domestic borrowing, which jumped by 52.7%, compared to a modest 6.2% rise in external borrowing. Analysts warn that this trend could put significant pressure on the national budget, particularly in sectors like health and education.

“The debt service-to-revenue ratio is widening. It’s unsustainable if domestic borrowing continues at this pace,” said economic analyst Sarah Kintu.

Key Takeaways:

Domestic borrowing surged by more than 50%.

Debt servicing costs are expected to reduce fiscal space.

Comparisons with other East African economies show Uganda is among the fastest in debt accumulation.

Economists say the government faces tough choices: either cut spending, restructure debt, or raise taxes — all politically sensitive options ahead of the 2026 elections.