Debt servicing leaves Ugandans facing a double burden, economists warn

What the report says

SEATINI Uganda is warning that Uganda’s rising public debt is putting households under pressure in two ways: higher taxes are needed to help service government borrowing, while citizens may also pay more directly for basic services when public funding is stretched. The comments were reported by Nile Post and attributed to Herbert Kafeero, SEATINI Uganda’s deputy executive director.

Kafeero said debt servicing should not be seen as a burden borne only by the state, because repayment comes from public revenue collected from taxpayers. He argued that when more resources are directed toward debt payments, less money may remain for services such as healthcare, education and roads, increasing out-of-pocket costs for families.

According to the report, SEATINI Uganda described this as a “double burden” on citizens: contributing to tax revenue and then covering gaps in services themselves. Kafeero also said the key issue is not borrowing alone, but whether borrowed funds are used for investments that can produce economic returns.

The group called for stronger public investment management, tighter parliamentary oversight, better domestic revenue mobilisation and more transparency in how loans are negotiated and spent. It also urged action to reduce corruption and revenue leakages, and to broaden the tax base so the pressure does not fall mainly on current taxpayers.