KAMPALA, Uganda – The Ugandan government on Monday defended a plan to borrow approximately 12 trillion shillings ($3.2 billion) in the upcoming financial year, dismissing warnings from economists that the move could starve the private sector of vital credit.
Patrick Ocailap, Deputy Permanent Secretary to the Treasury, told reporters in Kampala that the domestic borrowing strategy is designed to fund “productive investments” that will stimulate long-term economic growth.
However, business leaders and opposition lawmakers warned that the government’s heavy appetite for domestic debt is already driving up interest rates and crowding out local enterprises.
The borrowing debate coincides with a period of heightened legislative friction. The Uganda Peoples’ Congress (UPC) and the National Association of Broadcasters (NAB) issued joint condemnations on Monday against the proposed “Sovereignty Bill.”
Critics argue the bill is “discriminatory” and threatens to criminalize investigative journalism under the guise of national security.
In a show of political mobilization, First Son General Muhoozi Kainerugaba led a charity run over the weekend to mark his 52nd birthday. The event, which drew thousands of supporters, is seen by analysts as a continued effort to consolidate his “PLU” (Patriotic League of Uganda) movement ahead of the 2026 elections.
