(Posted 26th October 2026)
Uganda’s Treasury Permanent Secretary in the Ministry of Finance, Mr. Ramathan Ggoobi, has urged citizens to implement household austerity measures.
Amidst rising global energy prices, inflation, and a weakening shilling is the Ugandan government now calling on citizens to align their personal finances with the state’s scaled-back spending.
Key Directives given to households
- Cut Unnecessary Travel: Citizens are advised to scale down non-essential journeys to offset rising domestic fuel costs.
- Eat Locally Sourced Staples: Ggoobi urged families to swap expensive imported foods for local food alternatives to protect household budgets.
- Prioritize Financial Planning: The economic squeeze is expected to persist for up to a full year while the central bank works to stabilize currency circulation.
The Broader Economic Context
The warning follows a decision by the Bank of Uganda to raise its Central Bank Rate (CBR) to 12% to curb inflation, which grew to 4.6%. Ggoobi characterized this hike as an early warning signal for the wider economy, noting that reckless or unprogrammed spending by both the state and private citizens threatens long-term purchasing power.
While the Ministry of Finance maintains that the country’s broader economic indicators show resilience, the government has concurrently reduced its own funding for operational costs, travel, and fuel to manage the national budget tightly.
The Government’s Response
According to updates from the Ministry of Finance, Planning and Economic Development, the state is implementing its own mirroring restrictions to offset the strain:
- Public Expenditure Cuts: The government has reduced its own internal funding allocations for administrative costs, travel, and vehicle fuel.
- Halting Injections: Fiscal policy is steering clear of reckless money printing or unnecessary external borrowing, focusing instead on domestic revenue mobilization.
- IMF Collaboration: Uganda is aggressively pursuing a new Extended Credit Facility (ECF) program with the International Monetary Fund (IMF) to secure low-cost, long-term financing and stabilize investor confidence.
While treasury officials maintain that the economic foundation remains structurally resilient, everyday citizens are expected to feel the effects of this fiscal contraction for up to a full year until the currency and domestic markets stabilize
