Uganda maintains highest treasury bill rate in East Africa

Uganda continued to offer the highest 91-day Treasury Bill rate among major East African Community economies during the first quarter of 2026, according to the latest EAC monetary statistics.

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‎The data indicates Uganda's position at the top of the regional interest rate rankings despite a general decline in Treasury Bill rates across most Partner States.

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‎The 91-day Treasury Bill rate in Uganda stood at 9.9 percent in Q1 2026.

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‎Although Uganda remained the highest in the region, the rate was lower than the 10.7 percent recorded during the fourth quarter of 2025.

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‎Burundi followed as the second-highest market with a Treasury Bill rate of 8.4 percent.

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‎Rwanda ranked third at 8.3 percent. Kenya recorded a rate of 7.5 percent during the quarter.

‎Tanzania posted the lowest Treasury Bill rate among the five countries at 4.2 percent.

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‎The gap between Uganda and Tanzania therefore stood at 5.7 percentage points.

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‎Compared to Q4 2025, Treasury Bill rates declined in Uganda, Burundi, Kenya and Tanzania.

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‎Rwanda was the only country to register an increase, with its rate rising from 7.6 percent to 8.3 percent.

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‎The report notes that Treasury Bill rates decreased for the majority of Partner States, reflecting changing monetary conditions across the region.

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‎Uganda nevertheless retained the highest short-term government borrowing cost in the bloc. The report further indicates that lending rates remained relatively stable in most Partner States.

‎Uganda recorded the highest increase in lending rates, rising by 90 basis points during the quarter.

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‎At the same time, deposit rates generally declined across the region. The interest rate spread also varied considerably among EAC economies.

‎South Sudan recorded the highest interest rate spread at 15.9 percent. Tanzania registered the lowest spread at 6.8 percent.

‎The regional monetary data also showed that broad money supply growth remained strong.

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‎Year-on-year growth in broad money supply, measured by M3, increased by 16.4 percent in Q1 2026.

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‎Credit to the private sector expanded by 14.0 percent, indicating continued lending activity within regional economies.

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‎Net foreign assets also registered strong growth, increasing by 26.0 percent during Q4 2025.

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‎The figures suggest that while Uganda remains the region's highest-yield Treasury Bill market, broader monetary conditions across the EAC continue to support economic expansion and private sector activity.

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