Uganda’s e stock of private sector credit grew to Shs 23.3 trillion in March 2025 from Shs 21.9 trillion in June 2024. This represents growth of 6.4 percent.
This is contained in the budget speech for FY 2025/26 delivered by Matia Kasaija, the Minister of Finance, Planning and Economic Development at Kololo Independence Grounds on Thursday 12th June 2025.
“Although this is low, it is expected to increase as private sector activity and household demand continue to recover,” Kasaija said, adding: “… contrary to conventional economics that Government borrowing crowds out private sector credit, Uganda’s Government borrowing has instead availed cheaper and patient capital to the private sector engaged in wealth creation initiatives.”
Kasaija says Government borrows from commercial banks at relatively higher rates and avails financing to the private sector in strategic sectors at relatively low or no interest rates.
“Government has provided direct credit to the private sector and households to supplement credit from commercial banks and other financial institutions, through PDM, Emyooga, youth and women livelihood funds, and women enterprise support funds totalling Shs 9.1 trillion, which is equivalent to 3.6 percent of total domestic economic output in financial year 2024/25,” Kasaija said.
The total resource envelope for FY2025/26amounts to Seventy-Two Trillion, Three Hundred and Seventy-Six Billion, Four Hundred and Eighty-One Million, Four Hundred Eighty-One Million, Five Hundred-Two Thousand, One Hundred-Three Shillings (72,376,481,502,103/=). According to Kasaija, domestic revenue will contribute Shs 37.55 trillion, of which Shs 33.94 trillion will be tax revenue, Shs 3.28 trillion non-tax revenue, and Shs328.6 billion Local Government revenue; domestic borrowing will contribute Shs 11.38 trillion; external financing for projects will contribute Shs 11.33 trillion of which Shs 2.8 trillion are grants and domestic refinancing of maturing domestic debt (new debt) will contribute Shs 10.03 trillion This means Uganda is set to borrow a total of Shs32.74 trillion in 2025/26.
The theme for the Shs72.3 trillion 2025/26 budget is “Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”
