Uganda’s external debt expenditures has risen to $416.62 million in the second quarter of the 2025/26 fiscal year, up from $381.52 million in the previous quarter, according to Ministry of Finance Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis.
Officials said the rising cost of debt servicing is consuming a growing share of government revenue, forcing authorities into difficult trade-offs between meeting loan obligations and funding critical sectors such as health, education, and infrastructure.
Maris Wanyera, Acting Director for debt and cash policy, said the bulletin aims to clarify the country’s debt status, enhance policymaking and transparency, and support effective debt management for sustainable economic growth.
The report shows Uganda’s total public debt stock increased to $34.86 billion by the end of December 2025, up from $34.21 billion at the end of September.
Domestic debt now accounts for the largest share of the total, at 54.5 percent, equivalent to $19.02 billion. This marks a shift from previous years when external debt was the dominant component. External debt has declined to 45.3 percent of the total, amounting to $15.84 billion. The ministry noted the change was largely driven by increased government borrowing through Treasury bills and bonds.
As of December 2025, the nominal public debt-to-GDP ratio stood at 52.7 percent, up slightly from 52.4 percent in September. Domestic debt represented 28.8 percent of GDP, while external debt accounted for 24 percent.
The bulletin also detailed the composition of Uganda’s external debt. During the second quarter, 66 percent of the external debt stock carried a fixed interest rate, meaning the borrowing cost remains constant regardless of market fluctuations. Variable-rate debt accounted for 21 percent, and non-interest-bearing debt made up 13 percent.
During the period, the external debt stock declined slightly from $15.89b in September 2025 to $15.84b by December 2025, mainly due to principal repayments amounting to $315.2m, together with exchange rate movements, which outweighed new loan disbursements totaling $302.7m during the same period.
Accordingn to the report,Unused external loans increased from $3.36b to $3.74 billion, largely due to new loan commitments during the quarter, including financing for the education in biomedical sciences project from the African Development Fund, a trade finance line from BADEA, the Resilient Livestock project financed by IFAD, and the fourth line of credit to Uganda Development Bank from the OPEC Fund.
The report further shows that 46 percent of Uganda’s external debt stock was denominated in US dollars, amounting to $7.28b. The Euro accounted for 35 percent or $5.53b, while the Chinese Yuan represented 8 percent, equivalent to $1.31b.
Meanwhile stock of domestic public debt has increased, rising from Shs63.94 trillion in September 2025 to Shs68.86 trillion in December 2025, driven by growth in both Treasury bills and bonds, with Treasury bills increasing from Shs7.95 trillion to Shs8.68 trillion, while bonds rose from Shs55.98 trillion to Shs59.67 trillion.
Government borrowing also increased between October and December 2025, mobilizing Shs7.22 trillion through the issuance of domestic securities, which was Shs1.17 trillion higher than the amount raised in the previous quarter, which reflected front-loading of financing requirements to support key government