Museveni targets 10.2% economic growth for Uganda as Kenya battles debt and budget pressure
By Sharon Atieno, June 12, 2026Ugandan President Yoweri Museveni has expressed confidence in his country’s economic outlook, projecting a sharp rise in growth next year even as neighbouring Kenya grapples with debt pressure and a widening budget deficit.
In a statement shared on his X account on Thursday, June 11, 2026, Museveni said Uganda remains focused on socio-economic transformation as it implements its 2026/27 financial year budget.
“As we implement the Financial Year 2026/27 budget, we must remain focused on Uganda’s strategic goal of socio-economic transformation,” Museveni said.
The Ugandan leader noted that the country’s economy is currently growing at 6.4 per cent and is projected to expand to 10.2 per cent next year, with petroleum expected to play a major role in accelerating growth.
“Our economy is growing at 6.4% and is projected to expand to 10.2% next year, driven in part by petroleum,” he said.
Growth and prosperity
Museveni said Uganda’s long-term strategy is centred on fully utilising local resources, tapping into the wider African market and ensuring more households participate directly in the money economy.
He argued that expanding economic participation at the household level remains critical in delivering prosperity across the country.
“By fully utilizing our vast potential, taking advantage of the African market, and ensuring that every household joins the money economy, we shall create prosperity for all Ugandans,” Museveni said.
Kenya faces debt pressure
Museveni’s optimism comes at a time when Kenya is facing growing fiscal pressure following the presentation of the 2026/27 national budget.
Treasury Cabinet Secretary John Mbadi recently revealed that Kenya is seeking to plug a projected Ksh1.1 trillion budget deficit, with the government now heavily relying on enhanced domestic revenue collection amid rising debt levels and tightening global borrowing conditions.
Mbadi said Kenya’s borrowing options remain constrained both locally and internationally, forcing the government to focus on tax administration reforms through the Kenya Revenue Authority.
“Deficit can only be financed through borrowing, both domestic and external,” Mbadi said, adding that global economic disruptions and inflation continue to complicate Kenya’s fiscal outlook.
As Uganda projects double-digit growth driven by petroleum expansion, Kenya’s economic conversation remains dominated by debt servicing, revenue pressure and efforts to balance an increasingly strained national budget.