Business
Uganda’s private sector credit rises by 3.8% in June
The growth was registered in both shilling-denominated credit, which rose from sh18.552 trillion to sh19.218 trillion, and foreign-currency-denominated credit, which increased from sh8.163 trillion to sh8.519 trillion over the period.
Ministry of Finance (pictured). Economic experts say private sector credit is key to financing production and consumption, which in turn impacts the wider expansion of the economy. (File [photo)
By: Umaru Kashaka, Journalist @New Vision
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The stock of Uganda’s outstanding private sector credit increased by 3.8%, from sh26.715 trillion in May 2026 to sh27.737 trillion in June 2026.
This is according to the Ministry of Finance’s Performance of the Economy report for July 2026.
The growth was registered in both shilling-denominated credit, which rose from sh18.552 trillion to sh19.218 trillion, and foreign-currency-denominated credit, which increased from sh8.163 trillion to sh8.519 trillion over the period.
The increase was partly supported by lower lending rates and higher credit extensions, particularly to the transport and communication, electricity and water, business, community and social sectors, as well as personal and household loans.
Compared with June 2025, the stock of outstanding private sector credit grew by 16.0%, from sh23.901 trillion to sh27.737 trillion in June 2026.
The increase was primarily driven by higher demand for credit, supported by improved economic activity and positive business sentiment.
The increase was partly supported by lower lending rates and higher credit extensions, particularly to the transport and communication, electricity and water, business, community and social sectors, as well as personal and household loans.
Compared with June 2025, the stock of outstanding private sector credit grew by 16.0%, from sh23.901 trillion to sh27.737 trillion in June 2026.
The increase was primarily driven by higher demand for credit, supported by improved economic activity and positive business sentiment.
This was reflected in the growth of gross domestic product from 6.3% in the financial year 2024/25 to 6.4% in 2025/26, and the Business Tendency Index (BTI), which remained above the 50-point threshold over the period.
BTI measures the level of optimism that executives have about the current and expected outlook for production, order levels, employment, prices and access to credit.
It covers the major sectors of the economy, namely construction, manufacturing, wholesale trade, agriculture and other services. An overall BTI above 50 indicates an improving outlook, while a reading below 50 indicates a deteriorating outlook.
Economic experts say private sector credit is key to financing production and consumption, which in turn impacts the wider expansion of the economy.
BTI measures the level of optimism that executives have about the current and expected outlook for production, order levels, employment, prices and access to credit.
It covers the major sectors of the economy, namely construction, manufacturing, wholesale trade, agriculture and other services. An overall BTI above 50 indicates an improving outlook, while a reading below 50 indicates a deteriorating outlook.
Economic experts say private sector credit is key to financing production and consumption, which in turn impacts the wider expansion of the economy.