Uganda’s Public Debt Surpasses 130 Trillion Shillings
Uganda’s public debt has risen to approximately Shs 131 trillion (US$34.86 billion) as of December 2025, according to the latest report from the Ministry of Finance, Planning and Economic Development (MOFPED). This represents an increase from Shs 128.6 trillion (US$34.21 billion) recorded in September 2025 [1].
Debt Composition
The report details the composition of the debt, revealing that domestic debt accounts for 54.5 percent of the total, equivalent to US$19.02 billion (Shs 68.86 trillion). External debt constitutes the remaining 45.3 percent, amounting to US$15.84 billion (Shs 57.33 trillion) [1].
Drivers of the Increase
The quarterly increase in public debt is largely attributed to higher domestic debt issuances [1].
Debt-to-GDP Ratio
By the end of December 2025, the nominal value of public debt as a percentage of GDP stood at 52.7 percent, a slight increase from the 52.4 percent recorded in September 2025. Domestic debt accounted for 28.8 percent of GDP, while external debt represented 24.0 percent [1].
The slight decline in the nominal external debt as a share of GDP was due to stronger GDP growth outpacing the accumulation of external debt and slower loan disbursements. However, committed but undisbursed debt increased from US$3.36 billion in September 2025 to US$3.74 billion in December 2025 [1].
Transparency and Debt Management
Maris Wanyera, Acting Director for Debt and Cash Policy at the Ministry of Finance, highlighted the importance of transparency in debt management. She stated that the Quarterly Debt Statistical Bulletin aims to “clarify the country’s debt status, enhance policymaking and transparency, and support effective debt management for sustainable economic growth” [1].
Economic Context
In the months leading to December 2025, Uganda experienced strengthening economic activity and improving business confidence [1]. Despite this positive economic outlook, the rising debt burden has raised concerns among economists regarding potential strains on funding for essential services like healthcare and education.