By David Mwanje
The Bank of Uganda has recorded strong investor interest 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 bonds, attracted bids worth Shs 1.44 trillion against an offer of Shs 990 billion.
The 3-year bond was the most sought after, posting a bid-to-cover ratio of 1.9, an indication of growing investor confidence in Uganda’s economy and the Central Bank’s management.
According to results released by the Bank on its official X page, yields stood at 16% for the 3-year bond maturing July 6, 2028, 17.15% for the 10-year bond maturing November 8, 2035, and 17.95%for the 20-year bond maturing June 18, 2043. Total accepted bids reached Shs 1.122 trillion, surpassing the initial offer.
Speaking to UBC, Bank of Uganda Governor Dr. Michael Atingi-Ego said the auction’s success demonstrates the public’s trust in government securities and Uganda’s macroeconomic stability. “The strong performance reflects the confidence Ugandans and institutional investors have in the country’s economic management,” he said.
Funds raised from the auction will go toward key infrastructure projects aligned with Uganda’s projected 6.2% GDP growth for 2025, as estimated by the World Bank.
Finance Minister Matia Kasaija, in his earlier budget address, said Treasury Bonds not only finance development but also offer citizens a secure investment option. He noted that these instruments will complement future oil revenues expected in the 2026/2027 financial year to sustain repayments and growth.
The Bank of Uganda has made government securities more accessible to the public, with a minimum investment of Shs 100,000. Individuals, small businesses, and pension funds can invest through authorized primary dealers such as dfcu Bank, Standard Chartered Bank Uganda, and SBG Securities Uganda.
The bonds pay interest twice a year, offering returns between 16% and 17.95%, significantly higher than the average savings rate of 5–7%.
To invest, applicants need a National ID, a passport photo, and a Central Securities Depository account form, submitted through a primary dealer. Dfcu Bank confirmed that clients can start with Shs 100,000 and may later trade their bonds on the secondary market before maturity.
Financial analyst Alex Kakande said the 10-year bond’s 17.15% yield presents a strong opportunity for Ugandans to earn competitive returns while supporting national development.
The Central Bank’s decision to accept bids above the initial target signals flexibility and continued confidence in the market. Another auction is scheduled for November 26, 2025.
