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

What the report says

Uganda’s trade gap with the East African Community widened sharply in August 2026, according to data compiled by the Uganda Development Bank’s research department and reported by The Observer. The country recorded an EAC deficit of $809 million after exporting $241.29 million in goods to the bloc and importing $1.05 billion, with Kenya and Tanzania accounting for most of the imbalance.

The article says Uganda’s overall merchandise trade deficit also deteriorated, rising to $817.03 million in August as imports increased much faster than exports. Export earnings rose modestly to $1.5 billion, while imports climbed to $2.31 billion. Despite the larger deficit, Uganda’s terms-of-trade index improved slightly, suggesting export prices moved more favorably relative to import prices.

Within the region, Kenya was Uganda’s largest import source and the biggest contributor to the bilateral deficit, while Tanzania was the second-largest source. Uganda still posted surpluses with the Democratic Republic of Congo, South Sudan and Rwanda, but these were not enough to offset the larger gaps with Kenya, Tanzania and Burundi. The Finance ministry has previously linked some of the strain to non-tariff barriers such as roadblocks, border delays, differing standards and surcharges on certain products.

The report also notes mixed performance in key agricultural exports. Coffee, cotton, tea, sesame and beans declined, while fish products and maize improved. The figures highlight how import growth, trade barriers and uneven export performance continue to weigh on Uganda’s external accounts and may add pressure to the shilling and imported inflation.