Ugandan consumers are increasingly burdened by rising prices of everyday goods, as new taxes and volatile fuel costs push the cost of living higher across the country. From construction materials and alcohol to textiles and household essentials, prices have surged in recent weeks, leaving both traders and buyers grappling with a difficult economic reality.
The 2025/2026 National Budget introduced several tax adjustments intended to boost government revenue. However, these have had a ripple effect on market prices. Key changes include higher duties on cigarettes and beer, and the introduction of export levies on products like wheat bran, maize bran, and cotton cake items that were previously tax-exempt. Traders say the taxes, compounded by fuel price instability, have directly contributed to soaring prices.
In cities like Mbale and Tororo, a bag of cement has gone up by as much as 10 percent. Iron bars, roofing nails, and other construction materials have also registered significant increases, affecting building projects and property development. Traders report slowing sales, and some businesses are struggling to absorb the rising logistics and procurement costs.
The beverage sector is also feeling the heat. Small bar owners say wholesale prices for popular local liquor brands have risen sharply, while some products are now frequently out of stock. As a result, consumers are either switching to cheaper alternatives or reducing consumption altogether.
Beyond business impacts, the rising costs are reshaping household budgets. Residents interviewed across different regions say they are cutting back on non-essentials and altering their daily routines to cope. Some fear continued price increases could lead to deeper economic stress in the coming months.
Economic analysts warn that while the new tax measures aim to strengthen domestic revenue, their inflationary effect could hurt low-income households the most. The government, however, maintains that the fiscal strategy is necessary for long-term economic sustainability.