Govt raises sh1.1 trillion from selling securities in August

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In August 2025, 1,127.48 billion shillings (1.127 trillion shillings) was raised from three auctions of Government securities on the domestic primary market, the latest report shows.

The August 2025 performance of the economy report by Uganda's finance ministry indicates that of the total amount raised, 717.34 billion shillings was used for refinancing of maturing securities, while 410.14 billion shillings financed other items in the budget.

Yields (interest rates) on treasury bills registered mixed movements in August.

The report also says yields on the 91-day edged downwards to 11.5% in August from 11.6% a month earlier, while yields on the 182-day edged upwards to 13.5% from 13.2%.

Yields on the 364-day tenor bill remained unchanged at 15.3% during the month.

“Yields on treasury bonds largely declined in comparison to the rates registered in previous issuances of similar securities. Yields for the 5-Year and 15-Year tenor bonds declined to 15.5% at 17.7% down from 16.8% and 17.8%, respectively,” the report says.

It adds that yields for the 2-year tenor bond remained unchanged at 15.8% while the 25-year tenor bond registered a yield of 16.0% at its first issuance in the market.

Treasury bills are risk-free short-term financial instruments for investment regularly issued to the public by the Government through the Bank of Uganda (BOU), while treasury bonds are long-term financial instruments also issued by the Government through BOU to the investing public.

The investment period for treasury bills is short-term tenors of three months, six months and one year, while that of treasury bonds is long-term tenors of two years, three years, five years, 10 years and 15 years.