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Dec 16th, 2025

Parliament Recalled to Consider Shs2.1 Trillion in New Loans

Written By | Our Reporter
According to the Order Paper, MPs will first consider "a motion for a resolution of Parliament to authorise the pre-financing of the design and build of the Kayunga–Bbaale–Galiraya Road (87 kilometres) from gravel to paved standard.

Bushenyi

Parliament has been recalled from recess to consider loan requests amounting to Shs2.177 trillion, as the government seeks fresh financing for infrastructure projects and budgetary priorities. 
In a notice issued on December 12, 2025, the Clerk to Parliament, Adolf Mwesige, informed Members of Parliament that the House will resume for a special plenary sitting on December 16, 2025.
"The Honourable Members of Parliament are hereby informed that Parliament shall resume from recess for a plenary sitting scheduled for Tuesday, December 16, 2025," Mwesige said in the notice, which was accompanied by the Order Paper outlining the business to be transacted. 

According to the Order Paper, MPs will first consider "a motion for a resolution of Parliament to authorise the pre-financing of the design and build of the Kayunga–Bbaale–Galiraya Road (87 kilometres) from gravel to paved standard."

The House will also debate "a motion for a resolution of Parliament to authorise the government to borrow up to US$162 million (approximately Shs575.6 billion) from the Korea Export-Import Bank for the Makerere University Improvement Project."

In addition, Parliament is expected to consider "a motion for a resolution of Parliament to authorise the government to borrow up to €385 million (about Shs1.602 trillion) from Rand Merchant Bank (RMB) and other financial institutions to finance government infrastructure and support the national budget."

Mwesige further noted that during the same sitting, MPs will receive the National Budget Framework Paper for FY 2026/27 to 2030/31, which "will kick-start the formal consideration of the national budget for the next financial year."

The Ministry of Finance is also expected to table "a proposal seeking the waiver of tax arrears for Newplan Limited," as well as "the tax expenditure report for the period July to September 2025 for FY 2025/26."

If approved, the loan requests will bring the total amount under consideration during the sitting to Shs2.177 trillion, further adding to Uganda's public debt.

According to the Ministry of Finance, as of June 2025, Uganda's total public debt stock stood at about Shs116.2 trillion (USD 32.3 billion), with domestic debt—largely government securities—accounting for roughly Shs60.3 trillion, making up a larger share of the total debt compared with external obligations.

This placed the country's debt-to-GDP ratio at over 51 percent, a level that continues to draw scrutiny from economists and development experts.

Published By | DICKENS TIHARIHONDIJO

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