Henry Musasizi, Uganda’s Minister for Finance By Prisca WanyenyaUganda’s public debt has risen to US$37.12 billion (Shs145.890 trillion) by the end of June 2026, up from US$32.30 billion (Shs126.946 trillion) at the end of June 2025.More disturbing is the 60% increase in undisbursed external loans – loans that have been signed and are available to be drawn but not yet disbursed – which rose sharply from US$3.37 billion (Shs13.244 trillion) to US$5.39 billion (Shs21.183 trillion).The revelations are contained in the Annual Debt Statistical Bulletin and Public Debt Portfolio Analysis for June 2026, published on the Ministry of Finance website on September 15, 2026.“The total public debt stock increased to US$37.12 billion (Shs145.890 trillion) by the end of June 2026, up from US$32.30 billion (Shs126.946 trillion) at the end of June 2025. Domestic debt accounted for 56.1% of this total debt equivalent to US$20.82 billion or Shs76,323.43 billion, while external debt made up 43.9% equivalent to US$16.30 billion or Shs59,740.43 billion,” the report states.According to the Ministry of Finance, the external debt stock disbursed and outstanding increased from US$15.54 billion (Shs61.075 trillion) as of end June 2025 to US$16.30 billion (Shs64.062 trillion) by end of June 2026.The increment was primarily attributed to disbursements totalling USD 1.88 billion exceeding principal payments amounting to USD 1.00 billion, along with exchange rate variations.The increased disbursements were mainly notable from commercial creditors of USD 1.02 billion sourced for budget financing from Afrexim (USD 312.23 million), Rand Merchant Bank (USD 324.77 million), and EcoBank (USD 267.47 million) during the year.Undisbursed Loans WorsenThe report indicated that the trend of undisbursed loans is worsening, having risen sharply from US$3.37 billion to US$5.39 billion, an increase of 60.0% during the financial year.Government explained that whereas bilateral undisbursed debt reduced from USD 0.63 billion to USD 0.57 billion, both multilateral and private bank undisbursed amounts increased from USD 2.72 billion to USD 3.28 billion and USD 0.02 billion to USD 1.53 billion respectively.The increase from multilaterals was majorly attributed to new commitments from IDA amounting to USD 597.48 million for funding Public Investment Management Plus (PIM Plus), Northern Uganda Social Action Fund (NUSAF IV) and Uganda Learning Acceleration Program (ULEARN).For private banks, Standard Chartered Bank’s contribution to undisbursed debt amounted to USD 816.29 million for the design and build of water supply, Namanve-Kampala Industrial and Business Parks, Karuma-Tororo circuit and Karugutu-Ntoroko and Kitgum-Kidepo roads, while Citi Bank accounted for USD 702.28 million to fund Lot 4 of the oil roads, solar-powered irrigation project and enhancing agricultural production and market access.Who Owns Uganda’s Debt?On who owns Uganda’s debt, the Ministry cited multilateral creditors holding 64.67% of external debt stock equivalent to US$10.54 billion as the largest holders.The major multilateral creditors include International Development Association (IDA) also known as World Bank, International Monetary Fund (IMF) and African Development Fund (AfDF), collectively holding the largest share equivalent to 54.07% of the external debt portfolio.Additionally, bilateral creditors like Exim Bank of China and French Development Agency (AFD) command the largest share, holding USD 2.14 billion and USD 0.41 billion respectively.For private creditors during the same period, Stanbic Bank and Afrexim lead with holdings of USD 0.75 billion and USD 0.59 billion respectively.Debt Servicing Up 20%The report also indicated that government spent US$1,418.3 million (Shs5.574 trillion) on external debt service during FY2025/26, a 20.3% rise from US$1,179.1 million (Shs4.634 trillion) in FY2024/25.“All three components of external debt service i.e. principal, interest, and fees rose, but at markedly different rates. Principal repayments increased significantly by 23.3% from USD 811.46 million in FY2024/25 to USD 1,000.59 million in FY 2025/26. Interest payments marginally increased from USD 335.11 million to USD 357.07 million in the same period while the 86.4% jump in fees and charges from USD 32.53 million to USD 60.63 million is the most significant to note,” the report notes.Fees include commitment fees, upfront fees and facility charges associated with arranging and maintaining credit lines.Domestic DebtRelatedly, the Ministry indicated that total domestic debt stock increased from Shs60,337.55 billion in FY2024/25 to Shs76.323 trillion in FY2025/26, an increase of Shs15.985 trillion, and the borrowing financed part of the FY2025/26 budget deficit.On domestic debt service which comprises payments for redemptions, discounts and interest (coupons) on treasury securities, total debt service rose by 2.4% from Shs17.579 trillion in FY2024/25 to Shs18.002 trillion in FY2025/26.The post Uganda’s Public Debt Hits Shs145.8 Trillion as Undisbursed Loans Jump 60% appeared first on Business Focus.