'Private sector credit remains relatively unchanged'

KAMPALA - The stock of outstanding private sector credit remained relatively unchanged between April and May 2025, the latest government report shows.

The finance ministry performance of the economy report for June 2025 says the stock was shillings 23,536.10 billion (shillings 23.536 trillion) in May 2025, a 0.1% growth from the shillings 23,522.04 billion (shillings 23.522 trillion) recorded a month earlier.

Economic experts say private sector credit is key in financing production and consumption, which in turn impacts the wider expansion of the economy.

Of the total stock in May 2025, shillings 16,859.60 billion was shillings-denominated credit, an increment from shillings 16,756.06 billion in the previous month.

On the other hand, shillings 6,676.49 billion was foreign currency-denominated credit in May 2025, down from shillings 6,765.97 billion recorded a month earlier.

The value of credit approved for disbursement in May 2025 amounted to shillings 2,311.19 billion, representing an 88.7% approval rate against the shillings 2,605.38 billion that was applied for during the month.

Comparison with April 2025 shows a 49.4% increase from the shillings 1,547.15 billion extended during that month.

During the month, transport, communications, electricity and water accounted for 30.6% (shillings 707.84 billion) of the total disbursements.

This was followed by personal and household loans and manufacturing, which accounted for 21.2% (shillings 490.80 billion) and 11.9% (shillings 275.46 billion), respectively.