Uganda’s debt still under sustainable threshold: DST Ocailap.

The Deputy Secretary to the Treasury Mr Patrick Ocailap has revealed that Uganda’s debt is still under sustainable threshold calling upon the public not to worry while calling for utilisation of borrowed money to the proper use to those projects intend for it.  

This disclosure comes at a time when CSOs are raising concerns over increasing debt.

CSBAG ED Mukunda Julius said that heavy domestic borrowing could crowd out private sector access to credit and push up interest rates, ultimately slowing economic activity calling for a shift towards productive borrowing where loans are directed to sectors capable of generating returns, creating jobs, and driving long-term growth.

DST Ocailap said that by December 2025, the present value of Uganda’s public debt stood at approximately 46.6 percent of Gross Domestic Product (GDP), still below the 50 percent sustainability threshold.

“Uganda has not surpassed its debt ceiling, and Ugandans should not be worried. Government borrowing remains within approved limits” he said

He said that government is deliberately and cautiously taking on new loans, ensuring they are aligned with economic growth priorities and guided by frameworks.

According to Ocailap, Uganda’s debt portfolio is structured to ease short-term pressure, with repayment periods averaging between eight and nine years.

For the Treasury, he said, the critical issue is not the size of the debt alone but the country’s ability to meet its obligations.

“What matters is whether Uganda is meeting all its public debt obligations,” he said.