Business
Uganda’s private sector credit grows by 1.2%
On a year-on-year basis, private sector credit grew by 18.1% in July 2026, indicating an improvement in the stock of credit when compared to July 2025.
Dr Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST). (File photo)
By: Umaru Kashaka, Journalist @New Vision
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The stock of outstanding private sector credit in Uganda grew to sh28.088 trillion (1.2%) in July 2026, up from sh27,754.90 billion a month earlier.
The World Bank defines the stock of outstanding private sector credit as the total financial resources provided to private businesses and households by financial institutions, such as through loans and trade credits, that establish a formal claim for repayment.
This is according to the Ministry of Finance performance of the economy report for August 2026.
On a year-on-year basis, private sector credit grew by 18.1% in July 2026, indicating an improvement in the stock of credit when compared to July 2025.
“The growth in credit reflects sustained demand and supply of credit, occasioned by continued resilience in economic activity,” the report says.
On a year-on-year basis, private sector credit grew by 18.1% in July 2026, indicating an improvement in the stock of credit when compared to July 2025.
“The growth in credit reflects sustained demand and supply of credit, occasioned by continued resilience in economic activity,” the report says.
The improvement was further supported by reduced lender risk aversion, following a consecutive decline in non-performing loans over the first three quarters of the 2025/26 financial year.
Growth in credit was recorded across both local and foreign currency lending.
Shilling-denominated credit increased to sh19,280.20b in July 2026 from sh19,235.22 billion in June 2026, while foreign currency-denominated credit increased to sh8,808.71b from sh8,519.68b over the same period.
Economic experts say private sector credit is key in financing production and consumption, which in turn impacts the wider expansion of the economy.
Growth in credit was recorded across both local and foreign currency lending.
Shilling-denominated credit increased to sh19,280.20b in July 2026 from sh19,235.22 billion in June 2026, while foreign currency-denominated credit increased to sh8,808.71b from sh8,519.68b over the same period.
Economic experts say private sector credit is key in financing production and consumption, which in turn impacts the wider expansion of the economy.