Uganda’s Ministry of Finance has revealed that Uganda’s public debt increased to UGX131.61Trn as at March 2026, up from UGX125.18Trn recorded in December 2025.However, UGX19.677 trillion of the loans remain undisbursed.The details are contained in the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for March 2026 that was published on 15th June 2026 on the Ministry’s official website.“The total public debt portfolio increased between end-December 2025 and end-March 2026, rising from US$34.86 billion to US$34.98 billion. In Uganda Shilling terms, the portfolio increased more significantly, from UGX 126.185Trn to UGX131.611Trn over the same period. This reflects a combined effect of new borrowing, disbursements on existing loans, and exchange rate movements, particularly given that part of the debt portfolio is denominated in foreign currency,” the report reveals.According to the Ministry of Finance, Uganda’s domestic debt increased from US$19.02 billion to US$19.10 billion, equivalent to a rise from UGX68.856Trn to UGX71.867Trn while the external debt also increased slightly from US$15.84billion to US$15.88 billion, or from UGX57.329Trn to UGX59.744Trn.Government attributes the increase in domestic debt on the continued issuance of Government securities to finance the budget, while the increase in external debt was largely associated with disbursements on ongoing externally financed projects.The Ministry of Finance also provided an update on the undisbursed external debt that increased significantly from US$3.74billion (UGX13.654Trn) at the end of December 2025 to US$5.39Billion (UGX19.677Trn) by the end of March 2026, an increase that is reported to have been driven by growth in undisbursed commitments across all creditor categories.“The rise in undisbursed debt during the quarter was largely attributable to the signing and recording of new financing agreements, including the Enhancing Agricultural Productivity and Market Access Project loan from Citibank, the Karuma– Tororo Transmission Line Project loan from Standard Chartered Bank, the Water Supply and Sanitation Project loan from Standard Chartered Bank, the Laropi–Moyo– Katuna Road Project loan from the African Development Bank, and the Development Response to Displacement Impacts Project II (DRDIP II) loan from the World Bank, among others,” as highlighted in the report.On who owns Uganda’s debt, the Ministry of Finance cited the International Development Association (IDA), International Monetary Fund (IMF), and African Development Fund (AfDF) remain the dominant multilateral creditors, collectively accounting for 54.6 percent of the external debt portfolioOn the other hand, the bilateral creditors include; the Export-Import Bank of China (Exim Bank of China) and UK Export Finance (UKEF) remain the largest lenders, with outstanding debt of USD 2.08 billion and USD 0.34 billion, respectively. In the private creditor category, Stanbic Bank held the largest share, with outstanding claims amounting to US$0.82billion during the same periodThe Ministry of Finance also revealed that between December 2025 to March 2026, Uganda spent US$288.3 Million (UGX1.052Trn) on servicing its external debt, up from US$416 million (UGX 1.518Trn) spent in the previous quarter, and the decline was on account of increased principal and fees payments during the period.Government also indicated that during the quarter ended March 2026, Government’s domestic debt service obligations amounted to UGX5.794.8Trn representing an increase of UGX2.610.7Trn from UGX 3.184Trn recorded in the quarter ended December 2025.The report noted, “The increase was largely driven by higher redemption payments on maturing Government securities as well as increased coupon payments on Treasury Bonds. Domestic debt service comprised three main components, namely discount payments on Treasury Bills, coupon interest payments on Treasury Bonds, and redemption of maturing securities.”The post Uganda’s Public Debt Hits UGX131.6Tn As UGX19.6Tn Remain Undisbursed appeared first on Business Focus.