Uganda’s Treasury Bonds Auction Draws Shs 1.44 Trillion in Bids, Signaling Strong Investor Confidence

The Bank of Uganda (BoU) has reported overwhelming investor participation in its latest Treasury Bonds auction, held on October 29 and settled on October 30, 2025. The auction, which reopened 3-year, 10-year, and 20-year government bonds, attracted total bids worth Shs 1.44 trillion against an initial offer of Shs 990 billion, underscoring renewed investor confidence in Uganda’s economy.

Among the offerings, the 3-year bond emerged as the most popular, recording a bid-to-cover ratio of 1.9, a clear sign of market optimism toward the Central Bank’s fiscal management. Official figures shared on BoU’s X (formerly Twitter) account indicated yields of 16% for the 3-year bond maturing on July 6, 2028, 17.15% for the 10-year bond maturing on November 8, 2035, and 17.95% for the 20-year bond maturing on June 18, 2043. In total, the Bank accepted bids worth Shs 1.122 trillion, surpassing the original offer amount.

Speaking to UBC, Bank of Uganda Governor Dr. Michael Atingi-Ego said the successful auction reflects public trust in government securities and the country’s macroeconomic stability. “This strong performance demonstrates the confidence Ugandans and institutional investors have in our economic direction,” he stated.

Proceeds from the auction will support key infrastructure projects, aligning with Uganda’s projected 6.2% GDP growth for 2025, according to World Bank estimates. Finance Minister Matia Kasaija reiterated that Treasury Bonds not only fund national development but also provide citizens with a safe and rewarding investment opportunity. He added that the bonds will complement future oil revenues expected during the 2026/2027 financial year, ensuring sustainable debt management and continued growth.

To enhance financial inclusion, the Bank of Uganda has made investing in government securities more accessible, with a minimum investment requirement of Shs 100,000. Individuals, small businesses, and institutional investors can participate through authorized primary dealers such as dfcu Bank, Standard Chartered Bank Uganda, and SBG Securities Uganda.

These bonds pay interest semiannually, offering attractive returns ranging between 16% and 17.95%, significantly above the 5–7% average savings rate in commercial banks. Interested investors must submit a National ID, a passport photo, and a Central Securities Depository (CSD) account form via a registered dealer. Dfcu Bank confirmed that participants can begin with Shs 100,000 and later trade their bonds on the secondary market before maturity.

Financial analyst Alex Kakande noted that the 10-year bond, yielding 17.15%, presents a strong opportunity for Ugandans to secure high returns while contributing to national growth.

The Central Bank’s decision to accept bids above its initial target illustrates its flexibility and confidence in market demand. The next Treasury Bonds auction is scheduled for November 26, 2025, as BoU continues to strengthen domestic investment and financial stability.