Ugandans have been urged to reduce unnecessary spending, avoid needless journeys and switch from imported foods to locally produced alternatives as rising fuel prices, inflation and a weakening shilling put pressure on household budgets. The government says families and public institutions must adjust their lifestyles to cope with the changing economic situation.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said households should take the economic warning seriously and begin making spending adjustments. He explained that the government was also cutting expenditure on travel, fuel and other operational costs as part of efforts to manage inflationary pressure.
Ggoobi described the Bank of Uganda’s decision to increase the Central Bank Rate as a warning to businesses, households and other economic players to become more cautious with their money. He said the message was not intended for commercial banks alone but for everyone affected by changes in the economy.
With fuel prices rising, Ggoobi advised motorists to avoid journeys they could do without. He said drivers should stop using their vehicles aimlessly and reduce unnecessary trips, including giving people lifts when it would increase fuel consumption without being essential.
Government ministries, departments and agencies have also been directed to reduce spending on non-essential activities. According to Ggoobi, funding for consumable items was reduced during the release of second-quarter funds for the 2026/27 financial year, while officials were encouraged to attend workshops and meetings online instead of travelling.
The government reportedly reduced planned second-quarter expenditure by nearly Shs3 trillion as part of measures intended to support efforts to control inflation. Ggoobi warned that households should not expect to maintain the same spending habits when economic conditions change, urging people to identify expenses they can reduce.
He also encouraged Ugandans to buy locally produced foods instead of relying heavily on imported household staples. He pointed to potatoes from Kabale, cassava and matooke as alternatives to imported foods such as spaghetti, arguing that locally produced options could be more affordable even when transport costs push their prices up.
The advice comes as the Uganda shilling faces renewed pressure against the US dollar. Commercial banks quoted the dollar at around Shs4,250 to Shs4,260 on October 22, compared with approximately Shs4,045 to Shs4,055 a week earlier. Strong demand for foreign currency from energy and merchandise importers contributed to the decline.
The Bank of Uganda raised its Central Bank Rate from 9.75 per cent to 12 per cent at a special meeting on October 14, 2026, in a move intended to contain inflation risks linked to higher fuel costs and currency depreciation. The central bank also sold foreign currency on October 22 after the shilling’s initial recovery following the rate increase proved short-lived. As economic pressure continues, the government is urging households to spend carefully, limit unnecessary travel and consider locally produced goods to help manage rising living costs.
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