National Unity Platform (NUP) Diaspora Coordinator Daniel Kawuma has blamed President Yoweri Museveni’s government for Uganda’s weakening shilling, arguing that years of borrowing, public spending and limited investment in domestic production have left consumers bearing the cost.
In a statement issued on October 7, 2026, Kawuma said the shilling’s breach of the Sh4,000 mark against the US dollar should not be viewed solely as the result of external economic pressures.
He argued that global shocks had exposed deeper weaknesses in Uganda’s economy, particularly its dependence on imported goods, industrial inputs and refined petroleum products.
“When the shilling collapses, imported inflation hits the domestic supply chain immediately,” Kawuma said, linking the currency’s performance to the prices faced by households across the country.
According to Kawuma, the impact is particularly severe in the transport and food sectors, where higher fuel prices increase the cost of moving agricultural produce and other essential goods.
He cited fuel prices reaching about Sh7,000 per litre and said the increase has a knock-on effect on transport costs and the prices of commodities transported across the country.
Kawuma also pointed to household spending patterns, citing Uganda Bureau of Statistics data which he said shows food accounts for more than 44 percent of average household expenditure.
He argued that when food and transport consume a larger share of household income, families are forced to reduce spending on other needs, including healthcare, education and clothing.
The NUP official attributed the shilling’s vulnerability to what he described as years of excessive government borrowing and inadequate investment in productive sectors.
He claimed Uganda’s public debt has surpassed Sh130 trillion, arguing that greater investment in agro-processing, manufacturing and skills development could have strengthened the country’s export capacity and supported the local currency.
Kawuma further criticised government spending on political activities, including alleged cash handouts to ruling National Resistance Movement (NRM) legislators and the provision of vehicles to politicians.
He contrasted such spending with the economic difficulties facing ordinary Ugandans, accusing the government of prioritising political interests over measures that could ease the cost of living.
He also warned that depreciation of the shilling could increase the local-currency cost of servicing Uganda’s foreign-denominated debt, placing additional pressure on public finances.
Kawuma said the Bank of Uganda could not resolve the problem through monetary policy alone, arguing that broader fiscal reforms were necessary to address what he termed structural weaknesses in the economy.
He called for greater transparency, accountability and investment in domestic production, saying economic policy should prioritise the ability of ordinary families to afford food, fuel, transport, healthcare and education.
Kawuma’s remarks come amid heightened concern over the shilling’s performance and the broader cost-of-living pressures affecting Ugandan households.