(Posted 25th October 2026)
The Governor of the Bank of Uganda, Mr. Michael Atingi-Ego has delivered shocking economic news to the already worried Ugandans.
While speaking to the media on Friday, Atingi revealed that Ugandans should brace for hard economic times which will last for a full year.
Sources say the Bank of Uganda (BoU) Monetary Policy Committee (MPC) held an emergency closed meeting yesterday, and raised the Central Bank Rate (CBR) by 225 basis points, moving it from 9.75% to 12.0% which means that if any bank— say Equity Bank, or any SACCO wants to borrow Shs1M from the Bank of Uganda it has to pay back Shs1.12M. Atingi says this will stop Ugandans from borrowing in Banks or SACCOs because the lending rate will be higher for them hence decreasing money in circulation.
Atingi further revealed that having nothing to sell abroad as a country has worsened the value of the uganda shilling because it can’t be exchanged anywhere in the world which he adds that it has been made worse by the rising fuel prices due to the Iran-America war. Local economic pundits however also point the the lower money transfers from the Ugandan diaspora following an arguably ill considered change in law some months ago, which only now begins to show the true impact on funds inflow. Furthermore are sanctions and challenges with development partners also slowing the inflow of funds, while foreign investors in Uganda are presently rushing to repatriate dividends.
He thus warned Ugandans to tightly guard their savings and spend it on useful things only like paying YAKA (Electricity), Water, School fees bills, paying rent etc but not contributing to weddings etc because the situation will last till late next year.
Meanwhile has the Uganda Shilling continued to devaluate against the Euro as it did against the US Dollar, the UK Pound, the Swiss Franc and other major currencies.
A few months ago did the Euro trade at around 4.000 Uganda Shillings while as of earlier today the Shilling stands more than 20 percent lower:
1 Euro equals
4.932,00 Ugandan Shilling
24 Oct, 05:39 UTC
1 United States Dollar equals
4.402,20 Ugandan Shilling
24 Oct, 05:39 UTC
This trend is indeed challenging for Uganda as all imports due to be paid in hard currency will become comparably more expensive by the same margin as the currency devaluates.
This applies for all imported fuels as well as any other imported goods, leading to an immediate impact for the Ugandan consumers.
Key Economic Impacts and Measures
- Growth Downgrade: The central bank lowered the GDP growth outlook as tighter monetary policies and currency depreciation squeeze domestic economic activity.
- Interest Rate Hike: Governor Michael Atingi-Ego hiked the benchmark central bank rate by 225 basis points to 12% during an emergency meeting to curb inflation.
- Foreign Exchange Intervention: After the rate hike failed to permanently stabilize the currency, the Bank of Uganda entered the market to sell foreign currency (estimated up to $30 million) to defend the shilling, albeit with limited if no visible effect.
- Higher Import & Borrowing Costs: The weaker shilling inflates the local cost of critical imports like fuel and raises borrowing costs for households and businesses.
