While transaction volumes increased by just over a third, the value of transactions grew much faster, rising from Shs25 trillion to Shs41.3 trillion.
The value of transactions processed through Uganda’s agent banking network rose by 65.2 per cent to Shs41.3 trillion in the year to March 2026, reflecting the growing use of agents for deposits, cash services and other banking transactions.
The Finance Ministry’s latest microeconomic indicators for July 2026 show that the number of transactions also increased by 37 per cent, from 10.9 million in March 2025 to 15 million in March 2026.
The increase was mainly driven by more float purchases and cash deposits. The figures point to the growing role of agent banking in bringing financial services closer to customers, particularly those who may not have easy access to conventional bank branches.
While transaction volumes increased by just over a third, the value of transactions grew much faster, rising from Shs25 trillion to Shs41.3 trillion. This means considerably more money was moving through the agent banking network compared to a year earlier. The increase in financial transactions came as food price pressures eased slightly in July.
Inflation for food and non-alcoholic beverages fell by 0.5 per cent during the month, compared with no change in June. Food inflation alone dropped by 0.5 per cent, compared with a 0.2 per cent decline in June. The fall in food prices provides some relief to households, where food accounts for a large share of monthly spending. However, Kampala recorded a sharp deterioration in air quality during the same period.
Particulate matter increased by 42 per cent, from 37.7 micrograms per cubic metre in June to 53.4 micrograms per cubic metre in July. The increase was blamed on the dry and dusty weather conditions experienced during the month.
Uganda’s labour export sector, however, faced disruption after Saudi Arabia, the United Arab Emirates, Qatar and Kuwait imposed travel restrictions following the Ebola outbreak.
As a result, there were no officially registered migrant workers in July. The restrictions affected travel to some of the main destinations for Ugandan migrant workers, with possible implications for household incomes and remittances. Uganda has since been declared Ebola-free, raising the possibility of the gradual resumption of labour migration to the affected countries. Meanwhile, global commodity prices fell sharply in July.
The International Monetary Fund Commodity Price Index dropped by 11 per cent, from 216.61 in June to 193.20 in July. The decline was partly attributed to a 4 per cent fall in precious metal prices, including gold, silver, palladium and platinum. The movement in global commodity prices remains important for Uganda, given the impact of international prices on imports, exports and business costs.
The July figures therefore present a mixed picture for the economy. Agent banking activity is growing strongly and food price pressures are easing, but businesses and households continue to contend with environmental challenges, disruptions to overseas employment and changes in global commodity markets.
