The Bank of Uganda is auctioning Shs355bn ($96m) in Treasury Bills on Sept 24, 2025, to finance projects, attract investors, and strengthen the economy.

Kampala, Uganda — The Bank of Uganda (BoU) has launched a fresh auction of Shs355 billion ($96 million) in Treasury Bills, offering investors a safe and profitable option while helping finance the country’s development plans. The sale takes place on September 24, 2025, and comes as the government navigates tighter global financing conditions.

The central bank announced that the auction will feature three maturities. These include 91-day bills worth Shs25 billion ($6.8 million), 182-day bills at Shs75 billion ($20.3 million), and 364-day bills totaling Shs255 billion ($68.9 million). The securities are available to both domestic and foreign investors.

“The auction provides a stable investment avenue and supports the country’s broader economic agenda,” the Uganda Broadcasting Corporation reported, quoting BoU officials.

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Why the Auction Matters

Uganda faces a budget deficit as spending outpaces revenue. For the fiscal year 2025/26, the government projects Shs31.9 trillion ($8.6 billion) in revenue against expenditures of Shs51.53 trillion ($13.9 billion). Treasury Bills, alongside longer-dated bonds, have become a key tool to bridge the financing gap. In June this year, the government raised $88 million in a rare private placement treasury bond auction.

The BoU has leaned on short-term paper to meet immediate cash needs while ensuring investor confidence. The approach also helps to manage liquidity and keep inflation under control.

According to Kikubo Lane, yields on government securities have recently climbed, reflecting both global pressures and local demand for higher returns.

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Investor Appetite and Global Context

Ugandan government paper continues to attract significant interest. Demand has been supported by domestic pension funds, commercial banks, and insurance firms. Foreign portfolio investors have also increased their participation, seeking exposure to frontier African markets with strong growth potential.

Global conditions play a major role. The U.S. Federal Reserve has kept interest rates high, making global financing more expensive. Meanwhile, regional peers such as Kenya and Tanzania face fiscal challenges of their own. As a result, Uganda’s Treasury Bills offer relatively attractive yields for cautious investors.

The IMF has warned that frontier markets like Uganda must carefully manage debt sustainability. With external debt already estimated at $24.5 billion in mid-2025, the balance between borrowing and stability is delicate.

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Debt Sustainability in Focus

Uganda’s domestic debt stock has risen as the government turns inward for financing. By issuing more Treasury Bills and bonds, it reduces reliance on costly external loans. This strategy lowers exposure to currency volatility and international credit risks.

However, it also raises the risk of “crowding out” private sector borrowing. Commercial banks often prefer risk-free government securities over lending to businesses. Economists warn that over time, this could dampen credit growth for small and medium-sized enterprises.

Still, the BoU insists that short-term securities remain vital for balancing fiscal needs with monetary stability. In an interview with SoftPower, analysts said the central bank’s discipline has helped maintain investor confidence despite global volatility.

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Next Steps for Investors

Investors interested in today’s auction can participate through the Central Securities Depository System operated by BoU. Settlement is typically on a T+1 basis, meaning payment and allocation occur one day after the auction.

Successful bidders will earn interest based on the discount rate offered. The securities are backed by the government, making them among the safest investments available in the local market.

Market participants expect yields to remain elevated, given inflationary pressures and rising domestic borrowing needs. This may provide attractive returns for both institutional and retail investors.

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Broader Economic Implications

The auction is more than just a fundraising exercise. It signals Uganda’s determination to sustain growth, manage inflation, and maintain macroeconomic stability.

According to Nile Post, investor interest in government securities has steadily grown in recent years. This has been aided by regulatory reforms and efforts to deepen Uganda’s capital markets.

For the government, the challenge remains balancing short-term borrowing with long-term debt sustainability. With infrastructure and social spending priorities expanding, Treasury Bills will continue to play a central role in bridging funding gaps.

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Outlook

Uganda’s latest Treasury Bill auction underlines the delicate balance between funding needs and financial stability. As global markets remain volatile, BoU’s ability to attract investors at favorable rates will be closely watched.

Economists argue that consistent transparency and prudent fiscal management will be key. If managed well, these auctions could strengthen the country’s financial credibility and attract further international investment.

Rwanda’s National Bank introduces stricter rules for foreign currency transactions. Learn which entities can legally transact, how to comply, and the six-month transition period.

Rwanda Tightens Foreign Currency Rules for Businesses

Kigali, Rwanda — September 24, 2025 — Rwanda is intensifying its efforts to regulate foreign currency transactions. The National Bank of Rwanda (BNR) issued a new directive on September 17, 2025, clarifying which businesses can legally transact in foreign currency and outlining the procedures for others to obtain authorization.

“The directive enhances transparency and safeguards the stability of the Rwandan Franc,” a BNR spokesperson stated.

This move, which aims to curb dollarisation and strengthen the national currency, comes hot on the heels of the authorities here banning foreign currency pricing without formal approval.

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Who Can Transact in Foreign Currency?

The directive categorizes businesses into two groups:

1. Deemed Authorized Dealers — These include real estate firms with valid investment certificates, tourism operators licensed by the Rwanda Development Board (RDB), and companies operating under the Kigali International Financial Centre (KIFC). They do not need further approval to transact in foreign currencies.
2. Non-Authorized Entities — Businesses outside these categories must apply to BNR. The central bank has up to 25 working days to respond, extendable by 10 days. (Ensafrica)

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How Non-Authorized Businesses Can Apply

To gain approval, non-authorized entities must submit:

• A board resolution authorizing the application.
• A business incorporation certificate.
• A description of the business model and the need for foreign currency transactions.
• Proof of dealings with non-residents or other qualifying factors.

Approval is valid until revoked by BNR. (Lexology)

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Record-Keeping Rules

Authorized businesses must keep records of all foreign currency transactions for 10 years. This ensures accountability and helps BNR monitor compliance. Violations may lead to fines or revocation of authorization. (Ensafrica)

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Transition Period

Businesses with existing contracts in foreign currency have six months to comply. They can either apply for authorization or adjust contracts to meet the new requirements. (AllAfrica)

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Why This Matters

The directive is expected to:

• Strengthen the Rwandan Franc: Reducing dependence on foreign currencies boosts the national currency.
• Enhance economic stability: Limiting unauthorized transactions reduces financial volatility.
• Promote accountability: Record-keeping ensures businesses operate transparently.

Economists say the rules may also discourage informal forex trade and attract investors seeking a stable financial environment.

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Next Steps for Businesses

Companies operating in Rwanda should assess compliance and act quickly. Non-compliant businesses risk penalties or losing the right to transact in foreign currencies. BNR encourages firms to review their status and submit applications promptly.

For official guidance, visit the National Bank of Rwanda.

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Related Reading

• BNR Clarifies Who Can Legally Use Foreign Currency
• Understanding Rwanda’s FX Regulations 2025
• Implications of Rwanda’s Currency Restrictions

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Kenya plans a $1.15B IPO of Kenya Pipeline Co., its largest listing since Safaricom. The IMF-backed sale aims to cut debt and boost the Nairobi bourse.

Kenya’s $1.15 Billion Pipeline IPO Set to Eclipse Safaricom’s Landmark Listing

NAIROBI — Kenya is preparing its biggest-ever initial public offering (IPO), with plans to raise as much as $1.15 billion by selling shares in Kenya Pipeline Company (KPC). The move, announced this week, would mark the first time in more than a decade that the government is offering shares in a state-owned enterprise — and the deal could eclipse the historic 2008 listing of Safaricom Plc, still considered Kenya’s most successful privatization.

The proposed sale of up to 65% of KPC comes as the government intensifies efforts to cut reliance on borrowing and meet reform commitments made to the International Monetary Fund. Lawmakers are expected to vote on the IPO proposal on Tuesday, paving the way for what could become a transformative moment for Nairobi’s capital markets.

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IMF-Backed Fiscal Strategy

The IPO is part of broader fiscal reforms agreed between Kenya and the IMF under a multi-billion-dollar support program. The IMF has urged Nairobi to diversify revenue sources and reduce dependence on expensive domestic and external loans.

Kenya’s public debt currently stands at nearly 68% of GDP, up from around 45% a decade ago, according to the National Treasury. Servicing that debt consumes more than half of annual government revenues, leaving little room for development spending.

By partially privatizing KPC, the government hopes to generate a windfall, boost investor confidence, and deepen liquidity at the Nairobi Securities Exchange (NSE).

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Bigger Than Safaricom’s IPO

The pipeline operator’s offering could outstrip the Safaricom IPO of 2008, which raised about $770 million and attracted nearly 1 million retail investors, creating a generation of first-time shareholders in Kenya.

Safaricom’s listing not only transformed the NSE but also democratized investing by allowing ordinary Kenyans to buy into a company that later became the country’s largest by market value.

KPC’s IPO, at $1.15 billion, would exceed that milestone by nearly 50%, setting a new benchmark for African privatizations. Analysts say the deal could revive retail investor enthusiasm in a market that has seen few large listings in recent years.

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Why KPC Matters

Kenya Pipeline Company is one of the country’s most strategic state-owned assets. It operates the national petroleum pipeline network, transporting fuel from the port of Mombasa to inland depots, including those in Nairobi, Kisumu, and Eldoret.

The company’s infrastructure underpins Kenya’s economy and also supports the fuel needs of landlocked neighbors such as Uganda, Rwanda, and South Sudan.

By floating a majority stake, the government hopes to modernize the company, attract new capital for infrastructure upgrades, and unlock efficiencies in the petroleum supply chain.

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Risks and Investor Questions

Despite the strong headline numbers, questions remain over valuation, governance, and investor appetite.

Some analysts warn that global investors may hesitate given Kenya’s fiscal challenges and currency volatility. The Kenyan shilling has depreciated more than 20% against the US dollar over the past three years, eroding returns for foreign investors.

Others point to governance risks. State-owned enterprises in Kenya have often faced allegations of inefficiency and political interference, making transparency a key factor in attracting buyers.

Still, proponents argue that the KPC IPO could be a turning point. “This is not just about raising money; it’s about signaling seriousness in reform and market development,” said a Nairobi-based investment banker.

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Regional and Global Context

Kenya’s planned IPO stands out at a time when global equity markets remain volatile and African capital markets have struggled to attract big-ticket listings.

Neighboring Uganda shelved a planned IPO of its state oil firm in 2023, while Nigeria has relied more heavily on debt than equity markets to finance its budget.

If successful, Kenya’s offering could reignite interest in African privatizations, especially at a time when foreign investors are looking for exposure to frontier markets with long-term growth potential.

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Political Implications

The IPO is also politically sensitive. President William Ruto’s administration faces public pressure over high living costs and rising taxes, and critics may view the sale of strategic assets as a short-term fix.

Parliament’s approval will be a critical test, with some lawmakers wary of foreign investors taking control of vital energy infrastructure. The government has hinted it may ring-fence a portion of shares for local investors, following the Safaricom model.

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What Comes Next

If parliament gives the green light, the Treasury will appoint transaction advisors and begin preparing the offering documents. The IPO could launch in the second half of 2026, depending on market conditions.

For investors, the deal offers a rare chance to buy into a critical East African infrastructure asset. For Kenya, it represents a gamble — trading partial ownership of a strategic pipeline for financial stability and renewed investor confidence.

Whether it succeeds will depend not just on valuation, but also on execution, transparency, and the government’s ability to balance reform with public trust.