Cut unnecessary travel, avoid imported foods: Government urges Ugandans to brace for economic storm

The government is calling on Ugandans to tighten their belts by cutting unnecessary journeys and replacing imported foods with local alternatives as a weakening shilling and rising fuel costs squeeze household budgets.

Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi says households must adjust their spending, just as the government has reduced funding for travel, fuel and other running costs.

Ggoobi described the recent increase in the Central Bank Rate (CBR) as the first warning to the entire economy.

“The first major signal of the central bank is to tell you to tighten right now. And they are not telling banks alone. They are telling every economic agent,” he said.

With the rising fuel prices, the PSST Ggoobi urged motorists to avoid journeys they could do without.

“For instance if you have a car and you are used to buying a full tank and giving people rides back home, this is the time you drop yourself home strictly. You may drive, but do not drive aimlessly,” he said.

Ministries, departments and agencies (MDAs) have also been told to operate within tighter spending limits. 

Ggoobi said the ministry, in the recent fund release for the second quarter of the Financial Year 2026/27, has significantly cut funding for consumables across the MDAs.

“You must cut the trips. If you were travelling for workshops, now you should attend online. This is what these austerity measures are about. That is why we released less money in the second quarter on consumptive items,” he said.

The government reduced planned second-quarter expenditure by nearly Shs3 trillion to complement the central bank’s efforts to contain inflation.

Ggoobi warned Ugandans against maintaining the same spending habits despite changing economic conditions.

“Change your life when things are getting tough. Do not expect that things will remain the same when the macroeconomics has changed. You will have to lose some level of happiness,” he said.

He encouraged households to buy locally produced staples, instead of imported foods.

“Ugandans need to learn to substitute imported household staples and buy more locally produced. These will be much cheaper. Why are you eating spaghetti at a time when inflation is rising and the forex is high,” he said.

“In Uganda we don’t produce superghetti. We have our potatoes from Kabale, Cassava, Matoke and although their prices may increase slightly because of fuel prices, they will be relatively more affordable than imported items.”

His advice comes amid renewed pressure on the shilling. Commercial banks quoted the currency at Shs4,250/4,260 against the dollar on October 22, compared with Shs4,045/4,055 a week earlier

Strong demand from energy and merchandise importers contributed to the decline.

The Bank of Uganda raised the CBR from 9.75 per cent to 12 per cent at a special meeting on October 14, 2026. The increase of 2.25 percentage points aims to contain inflation risks arising from higher fuel costs and currency depreciation.

The central bank also sold foreign currency on October 22 after the shilling’s initial recovery following the rate increase proved short-lived