IMF urges Uganda to deepen private credit and cut banking costs

An IMF study finds Uganda's private credit-to-GDP ratio rose only 6.7 points between 2001-2005 and 2021-2025, against 13.3 in Kenya. It attributes high spreads largely to operating costs (59.1%) and rising government borrowing that crowds out private lending.

Uganda has the highest interest spreads in the East African Community, so cost and credit-reporting reforms are central to its banking-sector growth.