Imagine earning the same salary you earned last year, only to discover that it can no longer cover the expenses it once did. Fuel prices are approaching Shs 7,000 per litre in some areas, food is becoming more expensive, transport fares fluctuate, and even preparing a simple meal has become a financial challenge.

What is happening to Uganda’s economy, and what can be done to ease the pressure on ordinary households?

One major concern is the depreciation of the Ugandan shilling against the US dollar. When the shilling loses value, importing fuel, medicines, machinery and other essential goods becomes more expensive. Businesses facing higher import costs often pass some of the burden on to consumers, leaving ordinary Ugandans to pay more for everyday necessities.

However, the dollar is only part of the story.

Fuel prices have a ripple effect across the economy. When fuel becomes more expensive, farmers pay more to transport their produce, traders incur higher distribution costs, and taxi operators spend more to keep their vehicles on the road. These costs eventually find their way into the prices of food, manufactured goods and other services—even for people who do not own vehicles.

Then comes the charcoal question.

Protecting Uganda’s forests is essential for environmental sustainability, but conservation measures must also consider the realities facing households and small businesses that depend on charcoal for cooking. What happens when charcoal becomes less accessible or more expensive while affordable alternatives remain beyond the reach of many families?

Environmental protection should go hand in hand with practical solutions, including affordable clean-cooking technologies, reliable energy supplies and public awareness campaigns. Without these complementary measures, well-intentioned conservation policies risk placing additional pressure on already struggling households.

Taxes add another layer of concern. The additional Shs 200 per litre in fuel excise duty introduced in the 2026/27 financial year raises important questions about how taxation affects transport costs, production and the general cost of living.

At the same time, public debt and debt-servicing obligations place pressure on government finances, potentially limiting the resources available for essential services and development programmes. Citizens therefore have a legitimate interest in knowing whether taxes collected and money borrowed are translating into better infrastructure, improved public services and productive employment.

The Protection of Sovereignty Act also warrants careful discussion. During consideration of the original Bill, the Bank of Uganda raised concerns that restrictions on foreign financial flows could affect investor confidence, remittances and foreign-exchange reserves. Although the Bill was amended before becoming law, Uganda must continue balancing the protection of its national interests with the need to maintain confidence among legitimate investors and international partners.

However, the law’s contribution to current economic pressures should not be assumed without evidence. Its actual effects must be assessed against available economic data rather than speculation.

Beyond these immediate pressures lie deeper structural challenges: unemployment, low household incomes, expensive business credit, dependence on imports, limited local processing capacity and farmers struggling with high production costs and inadequate market access.

Economic growth means little to a family whose income cannot keep pace with the cost of food, housing, transport, education and healthcare. The real concern is not simply whether the economy is growing, but whether that growth is improving people’s daily lives.

So, what is the way forward?

Uganda needs practical solutions that go beyond explaining why prices are rising. Addressing the cost of living requires coordinated action across monetary policy, taxation, energy, agriculture, trade and public expenditure.

First, improve transparency in fuel pricing and taxation. Government should strengthen public communication on the factors determining pump prices, assess the impact of fuel taxes on consumers and businesses, and improve efficiency across the petroleum supply chain. Greater transparency would help citizens understand price movements and evaluate the effectiveness of government interventions.

Second, make affordable cooking energy accessible. Restrictions on charcoal use or supply should be accompanied by realistic alternatives, including affordable electric cooking appliances, improved cookstoves and other appropriate clean-energy solutions. Supporting households and small businesses through access to affordable technologies would help protect forests without worsening the cost of preparing meals.

Third, strengthen the shilling by expanding domestic production and export earnings. Uganda needs to earn more foreign currency through agriculture, tourism, manufacturing and other competitive sectors. Supporting value addition, improving product quality and expanding access to regional and international markets can increase export earnings while creating employment.

Reducing dependence on imports should also be pursued strategically by supporting local industries capable of producing competitive alternatives. This would help retain more economic value within the country, although essential imports will remain necessary in several sectors.

Fourth, ensure public money delivers tangible results. Stronger accountability, reduced waste, better project management and responsible borrowing can help ensure that public resources generate measurable benefits. Investments should prioritise productive infrastructure, education, healthcare, agricultural development and services that improve livelihoods.

Fifth, expand access to affordable financing and decent jobs. Small businesses need credit on terms they can reasonably manage, alongside business development support, reliable electricity and access to markets. Vocational training should also be aligned with labour-market demand so that young people acquire practical skills that translate into employment, entrepreneurship and sustainable incomes.

Finally, government should strengthen social and economic resilience by improving agricultural productivity, storage facilities and market access. Reducing post-harvest losses and supporting farmers to produce more efficiently can help stabilise food supplies and limit some of the pressures that drive consumer prices upwards.

Of course, Uganda does not control every factor affecting its economy. International oil prices, global financial conditions, exchange-rate movements and weather disruptions can all influence domestic prices. Nevertheless, domestic policies, the efficiency of public spending and the strength of local production can either cushion citizens against external shocks or deepen their effects.

Uganda has abundant resources, hardworking people and considerable economic potential. What citizens need is an economy that translates this potential into decent jobs, affordable necessities and meaningful opportunities to prosper.

Ultimately, the true measure of economic progress is not simply how much the country produces or how quickly its economy grows. It is whether an ordinary Ugandan can work, feed their family, pay their bills, educate their children and still have something left at the end of the month.

Because when the cost of living rises faster than incomes, economic progress becomes difficult to feel—especially from the fuel pump to the kitchen.

The author works with the Afro-Arab Youth Council (AAYC).

The post JACKLINE KICONCO: From the Fuel Pump to the Kitchen—Why Life Is Getting More Expensive in Uganda appeared first on Watchdog Uganda.

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