Uganda recorded a trade deficit of about Shs1.71 trillion with other East African Community partner states in July 2026, according to a Ministry of Finance performance report cited by New Vision.
The figure represents a sharp deterioration from the deficit recorded in July 2025 and has renewed attention on Uganda’s regional trade balance.
The report put Uganda’s July 2026 regional trade deficit at $436.68 million, compared with $54.49 million, approximately Shs213 billion, in July 2025. New Vision reported that the deterioration was driven by an 85.5% increase in the import bill alongside a 9.7% decline in exports to the region.
A trade deficit occurs when the value of goods a country imports exceeds the value of goods it exports. For Uganda, the figures matter because the EAC is one of the country’s most important regional markets. Changes in trade flows can affect businesses, foreign exchange demand, transport activity and the opportunities available to local producers.
The July figures were not uniformly negative across every EAC market. Uganda recorded trade surpluses with the Democratic Republic of Congo, South Sudan and Rwanda. The reported surpluses were approximately $120.51 million with DR Congo, $79.74 million with South Sudan and $25.64 million with Rwanda.
At the same time, Uganda recorded substantial deficits with Kenya, Burundi and Tanzania. The deficit with Kenya was reported at $432.62 million, while the deficits with Burundi and Tanzania were approximately $139.02 million and $90.93 million respectively. The figures illustrate how Uganda’s regional trade performance can vary considerably from one partner to another.
The report also highlighted the scale of Uganda’s imports from Kenya, Burundi and Tanzania. Uganda imported merchandise worth about $737.46 million from the three countries, compared with exports of approximately $74.89 million. According to the report, non-tariff trade barriers partly explain the deficits with Kenya and Tanzania.
The month-on-month picture was somewhat different. Uganda’s regional trade deficit narrowed from about $505.84 million in June to $436.68 million in July, because a decline in imports was larger than the decline in exports. This means the July result should be read alongside both annual comparisons and monthly movements rather than viewed in isolation.
For Ugandan businesses, the figures highlight the importance of expanding productive capacity and strengthening access to regional markets. Increasing exports can help firms earn foreign exchange, develop larger production networks and create opportunities for employment.
However, improving trade performance also depends on competitiveness, transport costs, product quality, market access and the removal of unnecessary barriers. The EAC trade figures are therefore relevant not only to policymakers but also to manufacturers, farmers, traders and transport operators.
Uganda’s regional position can change as commodity prices, production volumes, demand and trade policies change. Continued monitoring of the data will be important to determine whether July’s sharp deterioration becomes a longer trend or proves temporary