The Central Bank of Kenya (CBK) has secured Sh29.2 billion from a tap sale of Treasury bonds in June, contributing to a total of Sh31 billion in bids as the government approaches the end of its domestic borrowing program for the 2025/26 financial year. This move comes amid increasing funding pressures.

Uganda's inflation increased to 3 percent in April, up from 2.8 percent in March, primarily due to rising energy and transport costs, according to data from the Uganda Bureau of Statistics. Monthly prices rose by 0.6 percent, marking the fastest increase since February 2025, while food and core components showed contained price pressures.

In April, Uganda's private sector showed increased activity, with the headline purchasing managers' index rising to 55, its highest in five months, according to the Bank of Uganda's business tendency survey. Financial services experienced their strongest growth ever, indicating strong confidence in the sector, despite ongoing fuel-driven cost pressures. However, the survey also suggested that the underlying momentum may be losing some of its earlier strength.

Uganda's annual inflation rate increased to 3.2 percent in May from 3 percent in April, primarily due to rising fuel and transport costs associated with higher global oil prices. This trend has raised concerns at the Bank of Uganda regarding external inflation pressures, while food prices have remained relatively stable. The Uganda Bureau of Statistics reported a monthly consumer price rise of 0.7 percent.

Uganda's electricity regulator has announced that power tariffs will remain largely unchanged for the second quarter of 2026, as a strengthening shilling has balanced out a slight increase in global fuel prices. The Electricity Regulatory Authority noted that the approved end-user tariffs for April to June reflect changes in macroeconomic factors, but ultimately maintain stable pricing. The Ugandan shilling appreciated against the US dollar, reducing pressure on costs associated with dollar-denominated electricity generation.

The Monetary Policy Committee (MPC) of the Bank of Uganda (BoU) decided to keep the Central Bank Rate (CBR) at 9.75 percent during its meeting on 14 May 2026. The Committee noted that while risks from the Middle East conflict could increase inflation, the current monetary policy is deemed appropriate for the existing macroeconomic conditions. Inflation has remained below the medium-term target of 5 percent over the past year, ending in April 2026.