Rising prices reduce Ugandans’ spending
By the AFREEQUE newsroom, based on The Observer
Illustrative image · Ana Kenk · Pexels · Licence PexelsRising fuel prices and the depreciation of the Ugandan shilling are shrinking households’ daily budgets and weakening small businesses. In Kampala, workers and mechanics say they are rationing spending as import costs rise and demand falls, The Observer reports.
Rising fuel prices, supply difficulties and the depreciation of the Ugandan shilling against the dollar are reducing household and small-trader spending in Kampala, The Observer reports. Tony Oketch, a car washer, says he has cut his daily budget from 15,000 to 10,000 shillings to preserve his working capital.
Mechanics are facing both rising prices for imported parts and reduced means among their customers. Kenneth Wamala says the quantity of matooke bought with the same budget has fallen from ten fingers to five, while welders and phone repairers say they can no longer save. Street vendors are also selling fewer products, with higher ingredient costs.
In shops, stock turnover is reported to have gone from about two weeks to one month, while rents, licences, water bills and electricity bills remain high. The pressure increased after the Ugandan shilling fell to 4,500 to the dollar on 27 October 2026, according to The Observer.
