Civil Society Organisations (CSOs) have called on uganda government to embrace responsible borrowing, transparency and accountability in public debt management as Uganda’s debt burden continues to rise.
Launching Freedom from Debt Campaign in Kampala members of Civil Society Budget Advocacy Group said Uganda’s public debt stood at Shs94.9 trillion as of December 2025 and is projected to rise to Shs130 trillion in the financial year 2026/27.
Julius Mukunda CBAG Executive Director warned that increasing debt servicing obligations could limit the government’s ability to respond to development priorities and economic shocks.
“Uganda’s debt-to-GDP ratio has increased from approximately 46.6% in FY2023/24 to above 50%, approaching levels that require careful management to preserve fiscal sustainability and macroeconomic stability,” he said adding
that rising debt obligations expose the country to exchange rate fluctuations, interest rate shocks, refinancing risks and revenue uncertainties.
According to Mukunda the growing cost of servicing debt is competing with funding for key public services.
In the next financial year, government is projected to spend Shs33.6 trillion on debt servicing compared to Shs13.5 trillion for human capital development, Shs2.26 trillion for agro-industrialisation and about Shs2.5 trillion for wealth creation programmes.
JMukunda, said Uganda needs fair borrowing terms and should reduce dependence on debt.
“If you are borrowing externally at 8%, and the same market is providing loans to other countries at less than 3%, that is already unfair for a country like Uganda,” Mukunda said.
“We can reduce debt dependence by ensuring that the current debt we have acquired delivers the things we want,” he added.
Henry Magala Country Director of Uganda Cares suggested that borrowed funds must generate meaningful development outcomes in sectors such as healthcare, education, agriculture, social protection and employment creation.
Speaking at the same media engagement Hilda Tumuhe Programe Officer of Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) said Uganda can reduce debt dependence by addressing inefficiencies in government spending.
According to her some expenses like unnecessary travel, memberships and other costs can be reduced.
Meanwhile Naigaga Penninah form Uganda Debt Network said uganda can reduce debt dependence by being efficient.
She however called for reforms in the global borrowing system, arguing that developing countries should access loans under fairer terms.
She stressed that the current sovereign debt system places a heavier burden on developing countries while benefiting private creditors and wealthy nations.
