Uganda’s EAC trade deficit widens to $809 million as imports surge

What the report says

Uganda’s trade deficit with the East African Community widened to $809 million in August 2026, according to data compiled by the Uganda Development Bank’s research department and reported by The Independent Uganda. The imbalance was driven by a sharp rise in imports from Kenya and Tanzania, which far exceeded Uganda’s exports to the regional bloc. Uganda sold goods worth $241.29 million to EAC partners in the month, while imports reached $1.05 billion.

The article said Kenya was Uganda’s largest source of regional imports, with shipments worth about $714.5 million, while Tanzania supplied $203.6 million. Uganda also recorded sizeable trade gaps with those two countries, although it posted surpluses with the Democratic Republic of Congo, South Sudan and Rwanda. Those gains were not enough to offset the larger deficits.

The widening regional shortfall formed part of a broader deterioration in Uganda’s merchandise trade balance, which the report said also weakened pressure on the shilling and raised concerns about imported inflation. The Ministry of Finance has linked the trend partly to non-tariff barriers, including inconsistent regulations, border delays and other restrictions that make cross-border trade more costly. Citing recent bilateral talks and trade agreements, the article noted that efforts to remove barriers continue, but businesses remain cautious about how quickly those changes will take effect.