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UDN WEEKLY NEWSLETTER 450th EDITION 2025

Uganda is grappling with a growing crisis of domestic arrears, which have surged from UGX 10.502 trillion in Fy2022/23 to UGX 13.8144 trillion in FY2023/24 signifying 31.4% increase in a span of one year. The persistent accumulation of unpaid government obligations has raised concerns about the country’s economic stability, business liquidity, and governance. Despite the provision of the "Strategy to Clear and Prevent Domestic Arrears 2021," as a guideline to enable government address the perpetual problem of arrears, domestic arrears continue to rise posing a significant threat to Uganda’s financial health.