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Rising expenses are stretching Ugandan families
As Uganda’s economy continues to grow, many households are finding that their incomes are not stretching as far as they once did. From food and transport to housing and utilities, rising everyday costs are putting increasing pressure on family budgets, forcing many to rethink how they spend, save and plan for the future, writes Sandra Nabugonyi
Sandra Nabugonyi. (Courtesy)
By: Admin ., Journalist @New Vision
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OPINION
By Sandra Nabugonyi
For many Ugandan families, the beginning of a new month no longer brings the comfort it once did. Salaries may arrive on time, but the money seems to disappear faster as the cost of everyday necessities continues to rise. Households are increasingly forced to make difficult choices about what to buy, postpone or do without.
According to the Uganda Bureau of Statistics (UBOS), annual headline inflation rose to 4.1 per cent in August 2026, up from 4.0 per cent in July. The increase was mainly driven by higher core inflation and rising prices of food crops and related items. Rice, dried fish, maize flour, cassava flour, Irish potatoes and matooke all contributed to the pressure. While the figures may appear modest, inflation is experienced not through percentages but through the amount of money required to meet everyday needs. For families already working with tight budgets, the continuous increase in food, transport, housing and utility costs means the same salary now covers fewer needs.
At Nakawa Market, a mother of four described how rising food prices have changed the way her family shops. She said she now buys smaller quantities of essential items and has had to reconsider purchases that were once routine. Her experience reflects a wider reality: when prices rise, families often respond by reducing quantities, cutting unnecessary trips, postponing major purchases and saving less.
The pressure is not limited to low-income households. Middle- and higher-income families can also feel financially stretched when several essential expenses increase at the same time. For households that spend a large share of their income on food, transport, housing and utilities, price increases can leave little room for savings or emergencies.
According to the Uganda Bureau of Statistics (UBOS), annual headline inflation rose to 4.1 per cent in August 2026, up from 4.0 per cent in July. The increase was mainly driven by higher core inflation and rising prices of food crops and related items. Rice, dried fish, maize flour, cassava flour, Irish potatoes and matooke all contributed to the pressure. While the figures may appear modest, inflation is experienced not through percentages but through the amount of money required to meet everyday needs. For families already working with tight budgets, the continuous increase in food, transport, housing and utility costs means the same salary now covers fewer needs.
At Nakawa Market, a mother of four described how rising food prices have changed the way her family shops. She said she now buys smaller quantities of essential items and has had to reconsider purchases that were once routine. Her experience reflects a wider reality: when prices rise, families often respond by reducing quantities, cutting unnecessary trips, postponing major purchases and saving less.
The pressure is not limited to low-income households. Middle- and higher-income families can also feel financially stretched when several essential expenses increase at the same time. For households that spend a large share of their income on food, transport, housing and utilities, price increases can leave little room for savings or emergencies.
Small businesses are also affected as consumers reduce spending on non-essential goods and services. Yet Uganda’s wider economy continues to grow. The Ministry of Finance reported economic growth of 6.4 per cent in financial year 2025/26, up from 6.3 per cent the previous financial year. This shows that economic growth and household financial pressure can exist at the same time because growth measures overall economic activity, while household wellbeing depends on income, employment, prices and spending patterns.
The way forward requires both household and national responses. Families can strengthen budgeting, prioritise essential spending and explore ways of increasing household income where possible. At the national level, continued efforts to support food production, manage the cost of essential goods and strengthen employment opportunities will be important.
Ultimately, economic growth should translate into improved household wellbeing. As Uganda’s economy expands, ensuring that incomes keep pace with the rising cost of maintaining a decent standard of living will be essential to making that growth meaningful for ordinary families.
The writer is an Accounts receivable officer at Engineering Solutions (ENGSOL) and an MBA student at MUBS.
The way forward requires both household and national responses. Families can strengthen budgeting, prioritise essential spending and explore ways of increasing household income where possible. At the national level, continued efforts to support food production, manage the cost of essential goods and strengthen employment opportunities will be important.
Ultimately, economic growth should translate into improved household wellbeing. As Uganda’s economy expands, ensuring that incomes keep pace with the rising cost of maintaining a decent standard of living will be essential to making that growth meaningful for ordinary families.
The writer is an Accounts receivable officer at Engineering Solutions (ENGSOL) and an MBA student at MUBS.