Ugandan banks saw a rise in private sector lending in May 2026, coinciding with a decrease in treasury bond yields and slightly reduced interest rates. This shift follows the Central Bank’s decision to maintain its Central Bank Rate (CBR) unchanged. The increase in lending is attributed to a perceived reduction in risk within the financial market. Simultaneously, the government has decreased its borrowing on the local debt market, creating more liquidity for banks to lend. This combination of factors has fostered a more favorable environment for private sector credit growth. The trends observed in May mirrored those of April, indicating a sustained pattern in the financial sector. Further details are available from The Independent Uganda.