Investment-wise, I like to think of myself in a similar way.

The first time I submitted a bid for a Treasury bond and invested was in April 2025. I had just changed jobs and, with some spare cash arising from the move, I decided to try out this “bonds thing.”

The second time was in June 2025, on the secondary market. This came after I had submitted a bid for a two-year bond, only for the auction’s premium result to leave me unable to fulfil my intended bid amount. The money bounced back into my account, and I realised that I needed to explore purchasing a longer-term bond on the secondary market instead.

Through friends I had made within my professional network, I was able to secure what I considered, at the time, a great deal. It is important to note that this was right in the middle of Uganda’s bond-market boom, when yields were rising sharply and returns of around 17% were not uncommon.

During that period, I became deeply invested in learning how the bond market worked. I studied the intricacies of the primary and secondary markets, premium and discount auction results, and the relationship between coupon rates, yields, prices, and maturity.

I even went as far as researching the policy considerations behind government borrowing from the domestic market. Beginning in August 2025, I wrote several articles covering how to start investing in Treasury bonds, previews and reviews of primary-market auctions, and even on the Auditor General’s observations on trends in public debt, rising costs in borrowing etc.

Infact from this, we were even able to anticipate some of the reduction in bond yields that is now being felt across the fixed-income market.

I became a self-appointed Treasury bond crusader, firmly joining Alex Kakande’s “bond”-wagon.

I was fully focused. It was tunnel vision. I was hounding after the 14% after-tax yield that bonds provided.

Along the way, I made converts out of friends, colleagues, and even strangers. The more I shared, the more I learned, not only from other people, but also from the process of organising and explaining my own thoughts.

The blind spot created by tunnel vision

I am a career accountant. Over a span of more than five years, I reviewed countless financial statements, issued multiple management letters, and conducted numerous procedures to assess the financial performance of businesses and report to shareholders.

Yet, despite this experience, my investment focus remained almost entirely fixed on bonds.

Remember the tunnel vision I mentioned earlier?

This was it. I was single-minded.

In November 2025, I bought my first shares on the Uganda Securities Exchange(USE). The objective was to begin diversifying what was, at the time, an entirely fixed-income portfolio.

I purchased MTN Uganda at approximately UShs 295 per share and Bank of Baroda Uganda at about UShs 40 per share.

My earlier encounters with shares

The first time I heard about shares must have been at university during a financial-management class. We were learning about how companies raise capital, and I remember encountering terms such as Initial Public Offering, prospectus, ordinary shares, and dividends.

We studied them and passed the exams highly.

The next memorable encounter was probably in 2021, during the MTN Uganda Initial Public Offering. Whether it was because I did not have enough money to invest or simply lacked interest, I do not remember paying much attention to what was happening.

In my mind, investing in shares always appeared to be something that required a lot of money.

In the years that followed, I casually picked up conversations among friends who spoke about buying shares and earning dividends. I still was not particularly interested. At the time, I was fighting a different battle: securing a job and maintaining a stable income.

Then, during Easter 2025, my friend Isaac casually mentioned his desire to purchase Bank of Baroda Uganda shares. I believe the price at the time was around UShs 27 per share.

Remember that this was around the same period in which I was developing into a bond crusader. I quickly dismissed the idea after observing that the company’s dividend yield for the previous year was below the 14% return then available from Treasury bonds.

Looking back, I was comparing the dividend yield on shares against the yield on bonds while largely ignoring the possibility of capital appreciation and dividend growth.

That context is important to me because, as the familiar saying goes:

“Those who ignore history are bound to repeat it.”

Why I am now pivoting towards equities

I am as regular an investor as they come.

I bought my first shares less than a year ago and made my first bond investment less than 18 months ago. My primary source of investment capital is employment income. I am balancing rising living costs with saving and investing for the future and, most importantly, I am learning in real time.

I am also probably the first person in my clan to have ever made either of these investments😅.

I say this to demonstrate that these opportunities are available to everyone, regardless of background, once they become aware of them and take the time to learn.

In the middle of the current decline in Treasury bond yields, my pivot is not primarily being driven by a push away from fixed income. It is being driven more strongly by a pull towards the equities market.

My most substantial reason for this pivot is simple:

Businesses can grow.

Like living organisms, businesses generally pass through a life cycle: inception, growth, maturity, and, in some cases, decline.

A bond, on the other hand, is fundamentally a contract. Provided the issuer honours its obligations and you hold it to maturity, you know the coupon payments you are entitled to receive and the principal amount that should be repaid.

A successful business is different. Its revenue, profits, dividends, assets, and market value can grow over time.

Two very different cows

Think about it this way.

Suppose you are given the option of buying a cow that gives you 14 litres of milk every year for 25 years, without any increase in production.

The cow does not eat, does not fall sick, and does not die. At the end of the 25 years, you can sell it back for exactly the same amount you paid for it.

This cow is sold only by the government, and the government guarantees that it will remain alive and continue giving you the 14 litres of milk every year for the agreed period.

Or alternatively, there are these other cows sold to the public in a market. You may buy one directly from a herder or from another owner, after which you appoint experienced people to take care of it.

At the beginning, this cow may give you only 9 litres of milk. However, as it grows, the amount of milk it produces may also grow. Its value will probably increase, meaning that you could eventually sell it to another person at a profit. From time to time, as an owner, you may also have a say in important decisions, such as where the cow is grazed and how it is cared for.

But this second cow comes with risks.

It can fall sick. If it does, the amount of milk it gives you may reduce. Its market value may also fall. In the worst case, it may die, leaving you with an ownership certificate in something that is effectively worthless.

My friends, the first cow is a simple illustration of how a Treasury bond works when held to maturity and the government honours its obligations.

The second cow illustrates investing in equities.

Equities generally carry greater uncertainty than government bonds, but they also offer the possibility of greater long-term rewards. This is why bonds are referred to as fixed-income assets, while equities are more appropriately described as variable-return assets.

With equities, both the dividends and the share price can rise or fall. Returns are neither fixed nor guaranteed.

Which cow should you buy?

The central question then becomes: Which cow should you buy, or which company should you invest in?

For someone looking for relatively established and predictable businesses, my view is that it makes sense to begin by studying some of the strongest breeds available: companies that have operated for a long time, whose products and services we use in our daily lives, and whose activities power the economy.

That does not mean that every large or familiar company is automatically a good investment. Price still matters. Profitability matters. Debt matters. Corporate governance matters. Future growth matters. A good company can still be a poor investment if purchased at an unreasonable price.

However, familiarity can provide a useful starting point for research.

According to Crested Capital’s Black Diamonds analysis for the first half of 2026, the qualifying companies were Airtel Uganda, Quality Chemical Industries Limited, MTN Uganda, Uganda Clays, and Stanbic Bank Uganda. Crested Capital defines a Black Diamond as a listed equity delivering a total return of at least 25% over the period under review. Airtel reportedly led the group with a total shareholder return of 90.35 percent. Crested capital.

Except for Uganda Clays, the other companies represent significant parts of Uganda’s telecommunications, pharmaceutical, and financial-services sectors. An investment in any of the five at the beginning of 2026 would, according to the Black Diamonds methodology, have generated a total return of at least 25 percent by the end of the first half of the year.

That means UShs 1 million invested at the beginning of the year could have grown to at least approximately UShs 1.25 million before transaction costs and taxes, according to this report.

This does not mean that such returns will be repeated in the next six months. It simply demonstrates what was possible during that particular period.

You do not have to be exceptionally talented

Clearly, one does not have to be exceptionally talented to participate meaningfully in this market. One must simply be willing to learn, remain disciplined, and understand the risks being taken.

In my experience, the learning curve is accelerated when you have some skin in the game. Once you are invested, you begin paying closer attention to businesses, financial results, dividends, interest rates, economic policy, and the market as a whole.

One of the biggest obstacles for many potential investors is hesitation caused by a lack of experience or knowledge, but without starting where does the experience come from.

But, as the saying goes:

“You miss 100 percent of the shots you do not take.”

This should not be interpreted as encouragement to invest blindly. Taking a shot does not mean putting all your savings into one company. It can mean starting with a small amount, learning how the market works, reading company reports, understanding the risks, and building your position gradually.

For context, from my first investment in equities, as of 25 August 2026, the Uganda Securities Exchange’s market snapshot placed MTN Uganda at UShs 435 per share and Bank of Baroda Uganda at approximately UShs 61 per share.

Compared with my November 2025 purchase prices of UShs 295 and UShs 40 respectively, this is a practical demonstration of the potential reward from having skin in the game.

However, it is equally important to acknowledge that market prices can reverse. An investor purchasing today is not purchasing at my November 2025 prices. Past gains do not guarantee future gains.

Investing is not the same as gambling

To someone who may think that investing in shares is gambling, I would argue that the two are fundamentally different when investing is approached properly.

Buying shares means purchasing an ownership interest in a real business. That ownership may entitle you to dividends, voting rights, and a share of the company’s long-term growth. The investment decision can be based on revenue, profitability, cash flow, assets, debt, governance, competitive position, and valuation.

Bank of Baroda Uganda, for example, declared a dividend of UShs 6 per share for 2026, compared with UShs 4 per share in the previous year. References This is real measurable growth of a business. Same can be said of MTN, Airtel and other companies on the USE.

This is where the richest Ugandans are putting their money. Patrick Bitature, Charles Mbiire all have substantial holdings in publicly listed companies

Earlier this week, we saw in the news of Uganda's richest man Sudhir Rupaerlia receiving his Ushs 2.2bn dividend cheque from his Bank of Baroda 2.5% shareholding, he equally has substantial stakes in Stanbic Bank and other companies listed on the USE

Institutional investors also participate heavily in equities. NSSF Uganda reported assets under management of approximately UShs 26 trillion for the financial year ended June 2025. Its equity portfolio returned 25.2%. What this means is your pension fund NSSF has 13% of their Asset under Management invested in equities of which 70% of this or about UShs 2 trillion is invested in the Uganda stock market.

These large institutions are not investing because equities are risk-free. They invest because equities can form a productive part of a properly diversified, long-term portfolio.

An individual investor may not have the same capacity to absorb any losses as an institution, but through prudent allocation, diversification, regular investing, and disciplined risk management, individuals can participate in the same underlying businesses.

Wealth is often ownership, not cash

The world’s wealthiest people do not usually hold all their wealth as cash in bank accounts. Much of that wealth represents ownership stakes in businesses.

When the world richest man Musk briefly became the world’s first trillionaire, it wasn’t because he had a trillion dollars in his account or that his company that made profits of a trillion, it was simply because the value of his stocks in the listed companies exceeded a trillion dollars.

When the market value of those businesses rises, the estimated wealth of their owners rises. When the value falls, their wealth can also decline dramatically.

This is an important lesson because building wealth is not only about accumulating cash. It is also about gradually acquiring productive assets that can grow, generate income, or both.

For an ordinary investor, the objective is not to become a billionaire overnight. It is to acquire small pieces of productive businesses consistently and patiently over time.

My portfolio still has room for bonds

My pivot to equities has been taking place for some time. I now consider equities to be an important part of my long-term investment strategy.

However, I continue to hold the bonds I acquired earlier because they provide more predictable cash flow over the medium term. I also maintain a unit-trust account for capital aggregation and rainy-day needs, and I hold investments through an investment club.

In other words, pivoting towards equities does not require abandoning bonds.

The two asset classes can serve different purposes:

• Treasury bonds can provide more predictable income and capital preservation when held to maturity.

• Unit trusts can support liquidity, emergency planning, and the gradual accumulation of investment capital.

• Equities can provide long-term capital growth and growing dividend income, but with greater price and business risk.

• Investment clubs can provide pooled capital, accountability, shared learning, and access to opportunities, although they also require strong governance.

The goal is not necessarily to choose one and reject all the others but to understand what each investment is meant to do within your portfolio.

The next best time

In his November 2024 article, “The USE Continues to Be Uganda’s Best-Kept Secret,” business writer Paul Busharizi argued that the best time to invest in the Uganda Securities Exchange was 20 years ago, but the next best time is today.

That idea captures my own journey.

I did not invest during the MTN Uganda IPO in 2021. I dismissed Bank of Baroda Uganda when my friend Isaac mentioned it during Easter 2025. I was focused almost exclusively on Treasury bonds because their yields looked more attractive and easier to understand.

But investing is also a process of learning, adapting, and correcting your own blind spots.

I remain a regular investor whose investment capital comes primarily from employment, who is balancing present living costs against future financial goals, and who is learning in real time.

I am not particularly talented.

I am simply willing to learn.

If you do not yet have equities in your portfolio, consider learning about them today. Start small if necessary. Read financial statements. Study the businesses. Understand the risks. Diversify. Invest consistently. Do not invest money you may urgently need, and do not buy a company simply because its share price has recently increased.

The market does not guarantee rewards merely because someone showed up.

But over the long term, informed, disciplined, and patient participation gives an investor a chance to share in the growth of productive businesses.

Thank you for reading.

Ronaldo Watmon

On days when you can take your time to get out of bed on a Monday morning, when you can stir your morning cup of tea more gently. When you are in control and excited on how to spend your day?

On those few occasions where you are actually the master of your schedule, where you are not bound to the 9-5 timetable, where you can choose to be spontaneous.. where your mind is unbridled and you move with a bit of bounce in your steps?

What if that was every day? Financial Freedom.

Where your earnings aren’t attached to a 30-days a month, 52-weeks a year calendar. Where bills were paid on time without a second thought?

How many people want that, I am confident to say that everyone wants it, it is appealing to everyone, even to those for whom it is unassailable, the dream stays. It is the dream that at some point, somewhere out there, there is something for me.

The same dream that urges so many people to get up daily and go to work, the dream that someday upon retirement or otherwise, they will get to live their lives on their terms and as they best see fit.

The same dream that is anchored upon the next best job, the next promotion and the next paycheck. And even in an economy such as ours where majority are living paycheck to paycheck, that dream still powers through and exists.

As a famous quote goes, “the dream is free, but the hustle is sold separately.”

I am tempted to ask, how many people are actually putting one-foot infront of the other to actualize this dream.

Because without action, almost everything I have described above is abstract, a mirage, an idea!

It paints a picture but lacks details, it sets the destination but conveniently leaves out the means to get there.

Bills paid? Freedom guaranteed? All abstract, undefined. More of a feeling than reality.

A bunch of what-ifs and what-I-would-dos.

I’ve read often that for most in the evening of their lives, the issues are never about regrets on decisions taken and things done but rather of the ones that were never done, New-year goals that never left the diary, the plans that stayed on notebooks and to-do lists.

For the longest time especially at the start of my work life, I simply just existed, I went to work, worried about bills, slept, went to work again and worried about bills again, an endless cycle. And even when I grew in my career and didn’t have to worry about basic needs anymore, I simply just existed.

I wasn’t counting the years I had worked, never thought about life outside of the confines of the daily commute to and from work, that was just it.

Do your best, hope it is recognized by your bosses, secure a promotion and a raise? Then after few months of the new pay, return to the same cycle.

Now don’t be mistaken, even in the middle of all this, I did save regularly.. I have always had a savings culture. I’ll admit this was probably born out of a scarcity mindset, the fear of never wanting to be in a position of not having. Even while at the university I recall of friends whom I know got more pocket money than I did, theirs always seemed to get done faster than mine, I guess because I never spent with reckless abandon, I was always scared of not having.

I never had the mindset of ‘we’ll figure it out’. Figure what out, from who?

This moved a lot with me throughout those early days saving. However much of it would eventually be consumption based; to buy a new phone after one year of accumulating, furnish my home the first time I got to live by myself, all that.

My earliest reflection of life beyond the 9-5 routine that eventually led to purposeful saving probably happened really recently, in the last 2-3years.

It was from a Tweet by Livingstone Mukasa. I recall he wrote of financial freedom, of how to many it’ll remain just an idea and encouraged us to define what financial freedom looked like to each of us. The method he shared which I have used to date is; consider your current daily, weekly and monthly expenses, and ask yourself how much you need to have saved up to meet those expenses without having to actively work, attain that amount and you have retained financial freedom.

That would be the start point, that amount would allow you to live as you are now for the foreseeable future, but as I introduced earlier, that’s not what we usually dream of, our aspirations go further than our current circumstances and even when those circumstances change, so do our dreams.

It is a moving goal post.

And whichever amount that works out for you, and wherever you choose to save and invest it. What is guaranteed is that it’ll require consistent dedication and sacrifice.

There’s a reason why attaining financial independence is often coined as “escaping the rat race”. When you escape something, you rarely just walk out of it. There are often mechanisms designed to keep you there, short term pleasures, popularity of appearing wealthy instead of actually pursuing wealth, the illusion of having an image to protect, even peer pressure!

The capitalist induced modern life is creative, it keeps people consuming, in many ways always looking for how to keep you a laborer, a squatter than an owner, to be dependent than free, all offerings to make sure you stay in the rat race.

What often separates the chaff from the rice is simple: who is willing to pay now to enjoy later, to sow now and reap later.

Everything I have described at the start of this article is the desire for many, but those who achieve it are not part of the many.

They are the minority, not the majority

I often ask myself where do I want to fall?

They say another of life’s biggest regret is unfulfilled potential, knowing that you could have, but you never did. Which really just goes to show that knowing is never enough, the key is action.

In consciously and subconsciously making decisions about money with the overall objective in mind, with training your habits to match your dreams.

I have learnt recently just how much building and keeping money is a factor of habit, of what we do with it without even thinking, if you even think.

I have learnt that to belong among the minority, it’ll require a lot of unlearning and thinking differently. Of freeing myself of societal expectations and chaining myself to my defined goal. Of recognizing my own self-sabotaging habits and addressing them, in asking myself difficult questions.

In moving, in acknowledging that progress only stops when you stop moving, in recognizing the power of small consistent effort. “Small strokes fell great oaks”

In anticipating that some parts of the journey are going to be lonesome, not because is a journey best walked in isolation but because of the power of conviction that sometimes might be borderline obsession.

In recognizing power of community and mentorship, one that challenges you and teaches you. But the thing is that nothing is free, so what do you offer when you approach those who are where you want to be, well what can you offer? You offer initiative, you offer discipline and consistency. That’s the only currency you have.

We are all surrounded by people doing well around us, but the thing is they’ll never take the initiative to engage with you, you’ll have to take the steps, your goals will never be more important to anyone than yourself.

I have accepted that I will have to learn, and that I will get challenged, I will stumble and fall, maybe even more than once, many times. Some decisions will work; many will not. Whether I succeed or not will only be defined by how many times I choose to get up and carry on.

In the end, perhaps freedom is not built in giant leaps, but in the quiet decision to keep moving, over and over again, long after comfort would have asked us to stop.

Ronaldo Watmon

Yesterday, Bank of Uganda released the results of the much anticipated May Auction. Congratulations to all that invested!

Being the second last auction of the financial year, and likely one of the last times we see the 15yr bond on the auction calendar, this auction was always going to attract attention.

The 2 & 5 Year Bonds

These short term bonds went largely as expected, clearing at premium prices of 106.241 and 107.188 per 100, with yields of 12.98% and 14.5% respectively.

So, an investor putting aside UGX 1m would have had to part with UGX 1,062,410 and UGX 1,071,880.

What really caught my attention, however, was the bids put in by the non-competitive investors (often retail investors), a combined UGX 2.64Bn, a lot less than what we usually see for this bonds, a good sign as we have always seen that short term bonds are not ideal for a retail investor looking to lock in great returns and grow wealth over the long term.

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The 15 Year Bond

This bond, maturing in June 2039, cleared at a premium price of 105.679 with a yield of 15.75%.

What this means is that an investor putting in UGX 1m will have to pay UGX 1,056,790 at settlement.

This amount is slightly higher than the 103.243 price from its preceding auction in March 2026. The price increase as explained in the preview article is because the bond has accumulated additional earnings(interest) from that time to now, with the next payday less than two months away in July 2026 so almost automatically we were bound to see a higher cut-off price.

With the secondary market pricing just before this auction at around 106 per 100, the 105 pricing was great for most investors. This is a clear sign that the primary market is the best possible place for a retail investor to buy bonds.

My advice is usually to plan your savings around the primary market auction calendar, that way you consistently take advantage of primary market auctions.

What also could not miss the eye were the massive rejections of competitive bids.

See, the way the primary market auction works is that those bidding above UGX 200m (competitive bidders) submit their bids with a desired price/return. Government then decides, among the various bids, which ones fit within its strategy. Those are accepted, while the others are rejected.

For this particular auction, competitive bidders put in over UGX 1Tn for the 15yr Bond, but government only took up about UGX 245Bn, translating into almost a 75% rejection rate.

This means that over three quarter of the competitive bidders wanted a price lower than the 105 cut-off price, to pay less.

This is not surprising, with government’s strategy for the near future aimed at reducing domestic borrowing in order to free up much needed credit for private sector players, while also managing the cost of debt.

Final Thoughts

I am happy with the results. Could they have been better? Yes.

But with only a few weeks to the next coupon payment date, investors in the 15yr bond can expect to quickly recoup a significant portion of the premium paid.

Keen to remember is that when that coupon payment lands, remember to reinvest in order to enjoy the compounding benefits.

The next Primary market Bond auction and the last for the 2025/26 financial years is on 10 June 2026 with the 3-, 10- and 20 year Bonds being auctioned.

Ronaldo Watmon

Next week, on 13th May 2026, the penultimate Treasury Bond auction of the 2025/26 financial year will be held. As usual, such a moment offers investors an opportunity to position themselves in attractive assets and especially before the fiscal calendar edges to its close.

On offer will be a mix of short- and long-term government securities: the 2-year bond maturing in 2028 and the 5-year bond maturing in 2030, carrying pre-tax coupon rates of 14.125% and 15.5% respectively. Alongside these sits the 15-year bond, with a coupon rate of 15.8%, maturing in 2039. Notably, this is the last time this financial year that this particular combination of tenors will appear in a primary market auction.

While all three instruments have their place depending on investor needs, my focus remains firmly on the longer-term bond.

Over time, I have consistently discouraged retail investors from concentrating on short-term securities, largely because of the usually high premiums required on settlement and higher withholding tax amounts.

The 15-Year Bond (15.8% Coupon Rate)

The 2039 bond continues to stand out as a favorite among both retail and institutional investors. It ordinarily pays a coupon in January and July.

Its appeal lies in its positioning: with roughly 13 years remaining to maturity, it comfortably fits within a medium- to long-term investment horizon. It sits neatly between the 10-year bond and the longer-dated 20- and 25-year instruments, offering a balance between duration and return.

This widespread appeal was clearly demonstrated in March 2026, the last time it was auctioned in the primary market. At that time, the bond cleared at a yield of 15.75%, with a cut-off price of 103.243.

In practical terms, this meant investors purchased it at a premium, paying approximately UGX 1,032,430 for every UGX 1 million in face value.

At issuance then, the bond had accrued only about 90 days of interest, having only earlier made a coupon payment in January 2026. Fast forward to the upcoming auction, and the dynamics shift slightly. By next week, the bond will have accumulated over 130 days of accrued interest, with the next coupon payment due on 8th July 2026.

What this implies assuming market conditions remain relatively stable is that investors should be prepared for an even higher premium than what we saw in the march auction. This expectation is already reflected in the secondary market, where the bond is currently trading at a yield of around 15.6%.

Translated into pricing, this suggests that acquiring a UGX 1 million face value may now cost approximately UGX 1,063,000 in the secondary market.

What This Means for Investors

For anyone planning to participate in the upcoming auction, it’s important to approach bidding with this context in mind. A premium is not a possibility; it is a strong likelihood. Factoring this into your investment decision will help align expectations and avoid surprises at settlement.

That said, the presence of a premium should not, by itself, be discouraging. The bond is now less than 60 days away from its next coupon payment. And should the results be as suggested by the secondary market prices, the coupon payout of about UGX 71,000 per UGX 1 million investment in July can offset the upfront premium paid.

Ensure to submit your instruction to the bank early enough, preferably this week or before 10am on Tuesday.

Looking forward

One of the most valuable lessons I’ve gained over the past year in the government securities market is just how dynamic bond pricing can be. Not long ago, particularly in the period leading up to the elections earlier this year, long-term bonds were commonly issued at deep discounts, with yields climbing to 17% or even higher. That environment made high-yield opportunities feel almost routine.

Since then, however, the landscape has changed. Yields have moderated, prices have risen, and premiums have become more common. This shift serves as a reminder that while opportunities in the bond market are always present, they tend to reward those who act early and decisively.

The subject of savings and investments in any asset; whether Bonds or others, can no longer only be treated as a passive afterthought. It now requires intention, planning, and integration into one’s daily, weekly and monthly routine. You must set clear savings and investment targets and consistently work towards achieving them, this will make a significant difference over time.

You must pick interest in where your money is going, if already saving you must understand how those you've trusted your money with are keeping and growing it.

There is both a lot to learn and a great deal to gain.

The final Treasury bond auction for this financial year is scheduled for 10th June 2026.

Until then, this upcoming auction presents a valuable opportunity to position yourself thoughtfully in the market.

Thank you for taking the time to read, and as always, enjoy the journey of investing.

Ronaldo Watmon

Last week, the Government of Uganda, through the Bank of Uganda (BoU), auctioned and issued Treasury Bonds across various tenors. The auction featured both short- and long-term securities, with the shortest being the 3‑year bond and the longest being the 20‑year bond.

The auction largely went as expected, particularly for the 3‑year and 10‑year bonds, which were issued at a premium, while the 20‑year bond cleared at a discount.

With settlement now completed and most successful bidders having already had their accounts debited, this article seeks to address three main questions:

1. Why short-term bonds are not ideal for retail investors

2. Why, despite a premium price, the 10‑year bond remains a favorite among investors, and

3. What explains the discount on the issuance of the 20‑year bond

A Closer Look at Short‑Term Bonds

Short‑term Treasury Bonds can be defined as those with a maturity period of less than 10 years.
Currently, in the Ugandan Treasury Bond Primary market, these include the 2‑year, 3‑year, and 5‑year bonds. These bonds carry coupon rates of 14.125%, 15.55%, and 15.5% respectively.

On the surface, these returns appear attractive and almost comparable to those offered by '“longer‑term bonds”. However, what many retail investors may not be fully aware of is the tax implication.

The key distinction between short‑ and long‑term bonds in the Ugandan context besides the 10‑year maturity threshold is the tax treatment. Short‑term bonds attract a 20% withholding tax, while long‑term bonds are taxed at only 10%.

Once tax is applied, the effective returns become less appealing:

• 2‑year bond: ~11.3%

• 3‑year bond: ~12.44%

• 5‑year bond: ~12.4%

In contrast, the lowest coupon rate among long‑term bonds currently in the market is about 13.5%, after only 10% tax.

A common concern often raised, especially by first‑time or prospective investors—is:

“I want to invest in a short‑term bond because I cannot wait 10 or 20 years to access my money.”

At the heart of this concern is a limited understanding of the secondary market.

To put this into context, bonds can be acquired in two places:

• The primary market, where bonds are issued directly by the government through the Bank of Uganda, and

• The secondary market, where existing bondholders trade these securities among themselves.

This means that an investor can purchase a bond at auction or later through the secondary market and if the need for liquidity arises, sell the bond before maturity.

Commercial banks play a key role in this ecosystem. As competitive bidders, they typically acquire large volumes of Treasury Bonds during primary auctions and later trade them in the secondary market. Banks also routinely buy bonds from retail investors and resell them to other market participants.

This ready liquidity is a major reason why bonds remain attractive investments, alongside their competitive returns. Turnaround times vary by bank, but some institutions offer same‑day liquidation.

Equally important is the fact that short‑term bonds are almost always issued at a premium, meaning investors typically pay more than the face value of the bond.

So simply put, whether an investor holds a long‑term or short‑term bond, liquidity is available through the secondary market. The question then becomes: why choose a short‑term bond, pay higher taxes, and earn lower effective returns?

Why the 10‑Year Bond Remains a Market Favorite Despite the Premium Price

At first glance, one might struggle to understand why the 10‑year bond continues to enjoy strong demand despite being priced at a premium.

The most obvious reason is the coupon rate. At 16.25%, and subject to only 10% withholding tax, the 10‑year bond currently offers the highest coupon rate among bonds available in the primary market. On income alone, it is hard to ignore.

Secondly, the maturity period plays a crucial role. The bond matures on 08 November 2035, meaning investors will receive their principal in just over nine years. Despite growing awareness of the secondary market, maturity still matters to many investors. In practical terms, an investor is getting near‑short‑term exposure while benefiting from long‑term tax advantages.

The third and slightly more complex factor is pricing, particularly in the most recent auction.

Although the bond cleared at a premium of about 10.199%, it is due to make a coupon payment in less than 30 days. As a result, investors effectively purchased an asset that already carried nearly six months of accrued interest.

While the quoted price may appear high, part of this premium is offset by the accrued interest embedded in the purchase price. To fully appreciate this, one must distinguish between the dirty price and the clean price of a bond. (For a more detailed explanation of accrued interest and bond pricing mechanics, see the earlier article referenced here:

What Explains the Discount on the Issuance of the 20‑Year Bond?

In the most recent auction, the 20‑year bond cleared at a discount of about 2%, pricing at roughly 97.619 per 100. This means that an investor committing UGX 1,000,000 paid only about UGX 976,190.

When compared to the steep premiums on the 10‑year bond, this naturally raises the question:

“Am I missing out on a good deal?”

The first signal lies in the coupon rate. At 15%, the 20‑year bond has the lowest coupon among the long‑term bonds currently available, with other long‑dated options offering higher rates. Although discounts often compensate for lower coupon rates by boosting yield, this alone does not tell the full story.

Duration risk is a major factor. A 20‑year bond carries significantly higher interest rate risk than a 10‑year bond. Even small increases in market interest rates can result in substantial price movements, making the bond more volatile in the secondary market. Investors demand a discount to compensate for this increased uncertainty.

Additionally, liquidity also plays a role. Longer‑dated bonds typically trade less frequently, and investors may face wider bid‑ask spreads when attempting to exit positions before maturity. The discount, therefore, acts as compensation for potentially lower liquidity.

In summary, the discounted pricing of the 20‑year bond reflects a combination of lower coupon rates, higher duration risk, liquidity considerations, and demand dynamics. For investors with long‑term liabilities and a stable investment horizon, it may still present value. For others, the apparent bargain must be weighed carefully against the underlying risks.

Going Forward?

The next primary market auction, the second last for the financial year 2025/26 is slated for 13 May 2026 with the 2-year, 5-year, and 15-year Bonds on Auction. Be sure to subscribe to get early access to the preview article!

Ronaldo Watmon

In the recent past, you may have come across posts on X (formerly Twitter) where users shared screenshots of mobile money messages from MTNU dividends payments. Many of these people acquired MTN shares through the IPO (Initial Public Offering) in 2021.

An IPO is the moment when a company’s shares are offered to the public for the first time.

These mobile money messages often carry captions expressing shock at how low the amounts are, with some people even claiming that owning the shares was a scam.

MTN Uganda Limited (MTNU) is currently the biggest company by market capitalization on the Uganda Securities Exchange (USE), with over UGX 10.6Tn.

When MTNU first IPO‑ed in 2021, about 20Bn shares were offered to the public at UGX 200 per share. The minimum requirement was UGX 250,000, about 1,200 shares for one to be eligible. There was also a secondary offer in 2024 of about 1.5 million shares at UGX 170 per share with a minimum requirement of 420 shares.

Naturally, many retail investors put in just the bare minimum amount.

Dividend Reality vs Expectation

In the first year on the USE, MTN paid a total dividend of UGX 230Bn, which came to about UGX 14.99 per share. Someone who invested the 250k minimum received around UGX 17,000, far below what many had expected.

Dividend can be defined as simply the portion of a company’s profits that is distributed to its owners.

But dividends are just one of two ways investors make money.
The other, often ignored is capital appreciation, the increase in the value of a company reflected in the share price.

The USE is a market like any other: prices move with supply and demand. These movements usually reflect two things; the value of the company now, and the market perceived future value of the company. And although this dynamic is clearer in larger markets like the New York Stock Exchange London Stock Exchange, etc.

What is clear however in the USE, is that market sentiment is largely dividend driven, that is, investors will usually find high dividend paying counters more attractive than the others.

This is usually why the first half of the year, earnings and dividend season—usually sees the most activity on the USE.

Companies by all means are meant to create value for their shareholders, but they can’t simply pay all profits as dividends for only that reason, they have to consider investing some of the earnings back into the business to fund future investments; Retained earnings. But I digress.

MTNU Dividend Progression

Since listing, MTN Uganda has consistently grown its dividend payout paying total dividends of 15.9 for 2022, 18 for 2023, 22.6 for 2024 and recently declared a total dividend of 28.5 per share for the year ended 2025. Accounting for over 80% of its profit after tax.

Here is a summary of the declared dividends:

Dividend Growth Chart

An investor who put aside 250k in 2021 earned a total of UGX 73,440 in the first four years and will receive about UGX 34,000 for 2025.

Capital Appreciation: The Overlooked Half of Wealth Creation

To look at dividends alone is to miss the bigger picture.

The company has grown over this period, and this growth has not been ignored by the market, and as of last week, MTNU traded at 477 UGX per share—more than double the IPO price. This represents capital appreciation of about 138%, or 27% per year on average since the IPO, excluding dividends.

Your initial 250k is now worth over 570k— this is real money than one can simply sell their shares and use for whatever they want.

Why Many Retail Investors Still Miss Out: The Scaling Problem

One thing that stops most retail investors from truly growing their money is scaling—the habit of treating investments as one‑off events instead of regularly increasing their holdings.

There is often the mindset of wanting an investment vehicle where one can “put money once and forget about it.” While this may help avoid the temptation to withdraw savings, it also means you are not engaging with your assets’ performance and may miss out on incredible returns simply because you did not invest more.

With an average return of 27% per year, the larger your position, the larger your absolute returns.

You don’t need to invest a lump sum. You simply need to invest regularly. If you committed before and saw your money grow, why not continue building that position?

Alternative Scaling Strategy: Reinvesting Your Dividends

Many investors assume scaling requires setting aside more money every month. It doesn’t have to. A powerful alternative is dividend reinvestment—using the dividends the company pays you to buy more shares.

Here’s why it works:

• You grow your share count without adding new money

• Your future dividends increase because you own more shares

• Your exposure to capital appreciation also increases

• Over many years, this compounds significantly

Even if you receive 17k or 34k in dividends, reinvesting that consistently, especially as payouts rise can materially grow your shareholding over time.

It turns your investment into a self‑reinforcing flywheel: dividends → more shares → more dividends → more shares. For long‑term wealth creation, this is one of the simplest yet most powerful strategies.

Potential Risks

Investors must also remember that no investment is risk‑free. Equities, including MTNU, carry several risks:

Market Risk. Prices can fall due to weak sentiment, reduced demand, or broader economic shocks.

Dividend Risk. Dividends are not guaranteed. If profits decline or the company prioritizes reinvestment, payouts may drop.

Regulatory & Sector Risk. Telecoms are heavily regulated. Taxes, licensing, mobile money policies, or compliance changes can impact earnings.

Liquidity Risk on the USE. The USE is less liquid than larger exchanges. Selling large volumes may take time or affect the price.

Concentration Risk. Over‑reliance on one stock increases vulnerability hence diversification becomes key.

Being aware of these risks can help you make decisions aligned with your goals and risk tolerance.

Final Thought

This analysis albeit focused on a single company, MTNU demonstrates the power of combining dividends and capital appreciation. But the real lesson is scaling; don’t just buy once and stop. Regularly increase your holdings, compound your returns, and think long-term.

Ronaldo Watmon

“Time in the market beats timing the market.”

This quote originally attributed to Ken Fisher was echoed in the closing remarks of SBG Uganda Chief Executive Grace Semakula at today’s SBG Securities 2026 Economic Forum, titled From Headwinds to New Horizons: Uganda’s Economic Trajectory in 2026.

This principle holds true for almost all legitimate investment avenues. The market rewards patience, not speculation; it rewards consistency, discipline, and the ability to think beyond the current status quo.

I believe that despite the volatilities we experience, a good investment remains a good investment. And that during uncertain periods, one simply needs to look past the noise, past the anxieties, and toward the distant horizon.

Regular readers of this blog will already know my insistence on Government securities as a safe and reliable vehicle for building long‑term wealth and generating consistent cashflows. However, recent events, both local and global had me questioning if it still was and perhaps if there were better avenues out there. The solution has been one, learning; from past trends in Bond yield in Uganda, delving into capital market reports and paying keen attention to what insights markets leaders are providing.

One thing, however, seems to cut across; our capital markets are underdeveloped. USE has less than a dozen listed companies, with activity in only about half of them, knowledge and information on govt securities still remains hardly available. And in an economy where resource scarcity bites at every doorstep, we must always look to deploy what we have as efficiently as possible. One plausible solution is diversification, managing risk by spreading exposure across different asset classes, but with limited resources, this also remains difficult to achieve.

This sentiment was palpable during this SBG securities economic forum, with many investors seeking clarity on the viability of Uganda government securities as a worthwhile investment. This is understandable considering the trajectory experienced in 2025 with great yields across the different bonds.

Now, despite of the largely unexpected results in the February Primary Market Bond auction where steep premiums of up to 12% were seen in long‑term securities, I am still convinced that investors made the right choice based on the information available at the time. If anything, these recent events have only renewed many investors’ resolve to understand market dynamics and how “these things” work.

Well, last week, on 05 March 2026, the Government of Uganda, once again through BOU, released an Invitation to Tender, inviting the public to participate in the upcoming Treasury Bond auction scheduled for 18 March 2026, with settlement (payment) following suit on 19 March 2026.

Being offered this time are four distinct bonds, with the longest being the 25‑year bond offered for the first time this financial year, the 15‑year bond maturing on 23‑Jun‑2039 is also on offer, with the others being the shorter‑tenor 2‑ and 5‑year bonds.

Below are my thoughts on this offer:

15‑Year Bond (15.8% coupon before tax)

This bond, which pays coupons in January and July, was last issued in January 2026, clearing at a cut‑off of 96.975 per 100, a 3.1% discount. In practical terms, an investor putting in UGX 1,000,000 paid only UGX 969,750. A sweet deal.

However, given the events of recent weeks and the accrued interest buildup, a repeat of such pricing is unlikely. The secondary market currently prices this bond at a yield of around 15.66%, implying a price of 101.28 per 100. At this rate, acquiring face value of UGX 1,000,000 would cost around UGX 1,012,800, a modest 1% premium.

As I’ve written before, paying a one‑off premium to acquire a bond does not necessarily spell doom and in many cases, might be entirely justified.
This still remains a great time to open or increase a position in this bond despite the expectation of the premium results.

25‑Year Bond (16% coupon before tax)

The 25‑year bond makes its first appearance this calendar year since November 2025, where it cleared at an astonishing 94.134 per 100, yielding 17.95%. Someone investing UGX 1,000,000 at that auction paid only UGX 941,340.

Right now, it is priced at a yield of 15.944%, which translates to roughly 100.3 per 100, meaning UGX 1,000,300 for UGX 1,000,000 face value. With this in mind, I am thinking; could the 25‑year bond be the blue‑chip of this auction?
We’ll know next week, but the signs point strongly in that direction.

It is also worth noting that this bond pays coupons in August and February, which may appeal to investors seeking to ladder their cashflows across the year.

Final Thoughts

Progress may be slow, but Uganda’s capital markets continue to grow, with a notable increase in participation from retail investors. Awareness, education, and confidence are rising steadily, and this is reflected in auction outcomes, secondary market activity, and the general energy around investment conversations.

Times may be uncertain but remember; the market rewards patience and consistency, so let’s keep being consistent, putting aside earnings, investing; and then doing it all over again, and again.

Many happy returns to us all.

Ronaldo Watmon

With everything going on globally and even locally, you’d be surprised that we’re only two months into 2026! I initially thought I would share this article at the end of Q1 2026, but with all that’s happening, I’ve thought: why not now?

First things first: where am I putting my money?
Everything I share here reflects my current portfolio standing and real‑life returns and projections if any as at end of February 2026.

Investments

My portfolio is spread across three major asset classes, reflecting variability in returns and risk profiles. You might ask why not split along tenors; primarily, all investments are held with a long‑term mindset, although the unit trust could also be seen to cater to liquidity needs.

1) Low risk

This currently makes up about 53% of my total portfolio, split as follows:

Treasury bonds (46%) – Long‑term government bonds, with 66% in 15‑year+ and the balance in a 10‑year bond. The returns on these averages around 14% per year, currently receiving coupons in January, May, July, and November. Much of these were acquired earlier on; I will look to increase T-Bond fixed‑income holdings in the coming months.

Secondly, SACCO (4%) – Returns here are not great, at around 3% per year. I mostly hold this for access to a credit line; they currently offer credit at an attractive 14% per annum. I’m looking to utilize this substantially in the coming months of 2026.

Third and last, Money market fund (3%) – I hold a Sanlam unit trust since 2023. At about 3% of the portfolio, it is mostly used as an aggregation vehicle for pooling before investing in either bonds or equities, so it rarely holds a substantial balance. It’s currently returning about 12% per annum, compounding on a monthly basis.

2) Moderate risk

This bracket is about 16% of the total portfolio and falls along two lines:

Equities – 100% invested on the Uganda Securities Exchange (USE), split 50/50 between MTNU and BOBU shares, currently averaging returns of 22% and 10% respectively, mostly as a result of capital gains. MTNU has been particularly exciting in the last six months, returning close to 66% to investors. I will look to increase holdings here as and when, prioritizing long‑term growth potential and to a lesser extent dividend return.

Secondly, Investment club – Held since January 2025, showing great potential. It falls here because it has exposure to USE equities as well, but is mostly heavily invested in long‑term bonds, with the possibility of lending to members in 2026. Ideally this carries greater risk, but I’m confident due to a strong governance base. I will cap return at 14%, benchmarking to the return on long‑term government paper since it’s heavily invested therein.

3) High risk

Risk to me is not necessarily variability of return, but possibility of capital erosion and true to the risk‑return trade‑off, this is the highest‑earning class with about 31% of the portfolio, returning about around 35% annually, with regular payments monthly cashflows. I choose not to compound these returns due to the risk profile; otherwise, it’s a potential money machine—I’m trying not to be greedy (haha).

The vehicle is hosted within a closed peer‑to‑peer mobile money lending platform. I’ve done this since early 2024, and it has done well for me. I’m actively considering ramping up the holding due to the high return but hesitant because of the risk profile. I’ll be keen to share an updated position later in the year.

A summary table is as below.

How I’m Spending My Time in 2026

Alongside shaping my portfolio, most of my time has been spent working; earning to save and invest. and sharpening my skillset so that every step forward is backed by both knowledge and discipline. I’ve been steadily learning new skills; financially especially around markets, risk, and long‑term wealth building, areas that continue to reward consistency and also life skills; swimming, a whole article for another day.

I’ve also spent and continue to spend a good amount of time assisting new investors, helping people understand the basics of bonds, unit trusts, equity positions, and how to navigate financial decisions with confidence. It’s been fulfilling to watch others begin their investment journeys and to share what I’ve learned in real time.

On top of that, I’ve been closely following the capital markets, tracking auctions, policy shifts, yield movements, and sector performance. Staying informed has helped me make deliberate, long‑term decisions rather than reacting emotionally to market noise, not all decisions are of course perfect, also learning that mistakes however costly, are very normal.

In short, my time this year is being split between work, investing intentionally, learning continuously, and supporting others, a combination that I believe compounds just as powerfully as the portfolio itself.

I am eager to know, How are you making your money work for you this new year?

Put it in the comments or send me an email at watmonronaldo99@gmail.com

Ronaldo Watmon

By now, many of you have already seen the results of today’s T‑Bond auction; some market commentators have simply called it to be “extremely painful.”

A little background: today the government, through BOU, auctioned three T‑Bonds; the 3‑year, 10‑year, and 20‑year bonds, with coupon rates of 15.5%, 16.25%, and 15.00%

There was a general expectation of a premium, but the results have still been unprecedented. The 10‑year bond came out at a premium of 12.978%, meaning an investor who put up UGX 1m will have to pay at least UGX 1.129m for this particular bond, a UGX 129k Premium!

The 20‑year bond was equally abysmal, with only a small discount of 1.245%. This means an investor who put up UGX 1m will pay UGX 987k for this bond.

While this was shocking especially to new investors, it is important to examine three major issues:
i) Did we see this coming?
ii) What do today’s prices mean: the clean price and dirty price concept.
iii) What does the future hold, and how should investors respond?

i) Did we see this coming?

In short, it was expected, but not to this magnitude. There has been a general policy redirection and tenor strategy from the government, they have been signaling less domestic borrowing and a stronger tilt to longer‑dated bonds to manage refinancing and interest‑rate risk which will likely continue into FY 2026/27. This could partly explain the steep premium noted today in the 10‑year bond.

In an earlier article, I noted that government additionally plans to reduce domestic credit by over UGX 2T in the next Financial year.

ii) What do today’s prices mean: The clean price and dirty price concept.

I’ll use the 10‑year bond to explain this. This bond pays its coupon in May and November annually. This means anyone who buys the bond between those months buys it with accrued interest. Accrued interest is interest that has been earned but not yet paid from the last coupon date upto settlement. Investors in today’s market therefore acquired an asset with accrued interest from November to February.

For a bond that pays semi-annually, the clean price resets immediately after a coupon and then drifts up as interest accrues until the next coupon date; dirty price tracks the true value including that accrual. If auction date=coupon date, clean price=dirty price.

The accrued interest on a UGX 1m investment is UGX 36k (post‑tax return of 14.6% × 3/12 × 1m). With a corresponding premium today of UGX 129k, that results in a net outflow of UGX 93k on this investment. Therefore, even the payment coming up in May will not cover the premium but future coupons will compensate for today’s premium.

Therefore whereas the dirty price for the 10year bond today was UGX 112.978, the clean price was around UGX 109 per 100.

iii) What does the future hold?

Compounding bears one-off premiums. As I have always advised, compound your earnings.
For all investors, the surest way to make the most out of your bond holding is to re‑invest the coupons you receive. When May 2026 arrives and you receive the UGX 72k coupon, add a bit more and reinvest in another bond. Over time, the total earnings will surely exceed this one‑time premium.

For existing holders, the long-term play remains intact, keep increasing your holding, do not be deterred. We have seen time and again the power of consistent savings and investment. Over the lifetime of your investment, the returns will exceed this premium many times over.

Final thoughts

Today’s auction will likely cause shock waves that will be felt across the financial industry. Investment vehicles hedged to the bond return such as unit trusts rates will be affected, and we may even see a far reaching affect on commercial bank lending rates.

We may not see the yields we have seen in recent times, the key is to stick to a long term holding.
The next auction is on 18 March 2026, with the 2‑, 5‑, 15‑, and 25‑year bonds on offer.

Ronaldo Watmon

Happy new month to you all! Here’s to greater financial returns for us in this new month.

In the last few days of January, Mr. Edward Akol, our esteemed Auditor General, was at Parliament to deliver the Financial Year 2024/25 audit report. I spent some time poring over this massive 760‑page document and the section that pulled me in the most was his detailed commentary on public debt.

According to the Auditor General, Uganda’s total public debt has continued on a steady upward climb, from UGX 69.20Tn in June 2021 to UGX 115.403Tn in June 2025, an overall growth of approximately 66.76% in just five years.

The report further states that domestic debt rose sharply from UGX 39.16Tn in June 2024 to UGX 59.02Tn in June 2025, signifying a major shift toward domestic financing and in this time Domestic debt (Government securities such as Treasury Bonds and Bills) for the first time surpassed external debt, raising its share of the total debt portfolio to 51.14%. In the previous year, domestic debt had accounted for only 41.83%.

Simply put, government leaned heavily on the domestic market to plug budget shortfalls during the review period.

The Auditor General went ahead and recommended that there is a need for the Government to rebalance the debt portfolio toward concessional external financing and to lengthen domestic debt maturities to reduce rollover risks. He says this is because rapid expansion in domestic borrowing increases interest costs, raises refinancing risks, and ultimately creates a crowding‑out effect, leaving less room for private‑sector credit.

This is especially worrying in a market like Uganda’s, where the cost of credit has long been painfully high for both retail and wholesale borrowers. Yet even amid this harsh environment, government continues to draw heavily from the available liquidity.

This presents a potential dilemma:

Should government persist with domestic borrowing which, while may be expensive, offers the comfort of local‑currency financing and shields the country from foreign exchange shocks at a risk of crowding out private sector from private credit? Or should it shift towards external financing, which can be cheaper on paper but often comes with stringent conditions and exposes the country to currency volatility?

This tension becomes even clearer when we look at the behavior of local financial institutions. pointed out this eye‑opening trend in his article from 2025: From Loans to Bonds: Analyzing the Investment Trends of Dfcu, Stanbic, and Bank of Baroda; In 2020, Dfcu’s loan portfolio had reached UGX 1.8 trillion, while investments in government securities were around UGX 700 billion and fast forward to 2024, Loans (were) UGX 1.1 trillion while Government securities (were) over 1.3 trillion.

This indicated that over the past four years, Dfcu had increased its investments in government securities by over UGX 600 billion while reducing its private sector loan portfolio by approximately UGX 700 billion.

Similar observations were made for Stanbic Bank and Baroda bank although at lesser volumes.

This shift shows a classic case of portfolio reallocation driven by risk‑reward dynamics. Banks prioritize safety and predictable returns. Government securities offer guaranteed payments, low default risk, and improved capital adequacy requirements. In contrast, private‑sector lending, especially in our economy with high Non-Performing Loans risks becomes less attractive. As more banks reroute capital towards government securities, the private sector faces reduced credit access, which slows investment, production, and job creation. The numbers from DFCU were therefore not isolated, they reflected a wider structural shift in Uganda’s financial system.

Money is scarce, meaning every shilling taken up by government is one less available for private‑sector lending, starving manufacturers, tourism players, and service providers of much‑needed growth capital. Coupled with a relatively underdeveloped stock market, this amplifies the constraint.

So what Next?

News from the FY 2026/27 Budget Framework Paper already shows that government plans to reduce domestically sourced credit by over UGX 2Tn, with Parliament expressing concern over rising domestic debt pressures. This may signal a potential cooling of appetite for domestic debt.

If government reduces domestic borrowing, liquidity may begin to shift back into the financial system. Financial institutions now holding large positions in government securities will find fewer similar high‑yield risk‑free instruments to absorb cash. This will naturally nudge them back toward private‑sector lending to maintain profitability. In short: reduced government borrowing could ease credit conditions for businesses, lower lending rates over time, and stimulate investment activity across sectors.

While this may be good news for private‑sector borrowers, for retail investors in government securities we are already seeing declining yields, and these are likely to drop even further. This may cascade through the money markets; unit trusts, other money‑market funds, and similar products.

Lower government borrowing reduces the supply of new securities, tightening competition in auctions. As demand outstrips supply, yields fall, which negatively affects investors seeking high‑income fixed‑income products. This environment will shift the advantage away from passive income seekers and more toward borrowers and long‑term capital allocators.

We are likely to see steeper pricing in the secondary market for government securities and tighter cut‑offs in the primary market.

Final thoughts

With shrinking issuance and increasing demand, secondary‑market prices will rise (and yields fall). Primary auctions will become more competitive, with higher cut‑offs. For investors, this presents a narrow window of opportunity: locking in medium‑to‑long‑term government securities now will allows you to secure higher yields before they fall further. Investors seeking stability, predictable cashflows, and capital preservation should consider increasing exposure while rates remain comparatively attractive.

Ronaldo Watmon

Nowhere is this more evident than in the way we handle money. How we get it, what we use it for, and how we prioritize it often follow patterns we may not even be aware of. These patterns are not unique to us as individuals, they are shared, learned, and reinforced within the groups, cultures, and communities we belong to. Understanding this helps us appreciate that our financial struggles whether saving, investing, or managing daily expenses are not isolated or personal failings. Others have walked similar paths, faced similar obstacles, and in many cases, discovered approaches and insights that can guide us.

A good place where this is explored is African Friends and Money Matters, a book by Author David E. Maranz.

Through careful observation and rich storytelling, Maranz unpacks the cultural logic behind African money habits and contrasts them with Western financial behavior. He sheds light on the unwritten rules that govern generosity, obligation, relationships, and sharing in many African societies, rules that, once understood, make seemingly “irrational” financial actions suddenly make perfect sense.

My good friend Juliet Nakazibwe has been gracious enough to share a book review with us, and I am delighted to present it here.

Please enjoy.

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African Friends and Money Matters offers a candid and insightful exploration of the intersection between money, culture, and relationships in Africa. The book, originally written by David Maranz in 2001, draws from his observations while living and working among Africans in different parts of the continent over many years, starting in 1975.

Many of the situations discussed in the book are ones I previously thought were unique to Uganda, but I was surprised to learn that similar patterns exist all over Africa.

The book presents 90 distinct observations grouped into six major categories: (1) the use of resources, (2) Friendship (3) the role of solidarity (4) society and people of means, (5) loans and debts and (6) business matters.

What I enjoyed most about this book is how relatable the stories are. The author uses everyday experiences such as borrowing money from friends, contributing to social causes, supporting extended family, and navigating unspoken financial expectations to explain how money can either strengthen or strain relationships. Many of the scenarios felt uncomfortably familiar, which made the book both engaging and reflective. At several points, I found myself pausing to think, “I’ve been in this exact situation.” Like scenario 54, haha I’m embarrassed to even write all the details of it here.

Some scenarios in the book hit particularly close to home because of how often I have seen them play out either in my own life or among people around me.

#29. Most networking is done horizontally or “up” and seldom “down” socially or economically.

Well for this one, I thought it was something that happens all around the world. You know that statements: “You’re the average of the five people you spend the most time with” or “Show me your friends and I’ll tell you who you are”. I assumed people naturally network at the same level or upwards, especially when trying to improve their lives.

#34. Many Africans in need are very discreet about asking for assistance, only hinting at their needs.

Growing up, I saw this a lot, many times when we travelled to the village. People would come to greet us (the people from Kampala), and when asked how they were doing, they would subtly hint at their struggles. For example, someone would talk about their sick child or that their goats had been stolen, and that’s where they expected to get their children’s school fees from. Occasionally during village church visits, they would talk about the need to expand the church or that the roof was leaking. All this, hoping you would understand the situation and offer help without them asking directly.

#35. Africans find security in ambiguous arrangements, plans and speech.

This shows up in things like having no fixed prices, meetings starting much later than scheduled, or meetings having a clear start time but no definite end time.

#37. A great many economic needs in Africa are met or alleviated through the solidarity and generosity of relatives and friends.

Oh, black tax!

#58. Old debts are forgotten and are not expected to be repaid, neither by the debtor nor by the lender.

This scenario highlights how loans between friends or relatives often quietly turn into gifts over time. The lender avoids following up to keep the peace, while the borrower assumes repayment is no longer required. No clear conversation takes place, so the debt simply fades quietly. Over time, this weakens trust and makes people hesitant to lend again.

#73. Bargaining is part of every business transaction.

If there’s one thing that frustrates me about shopping in downtown Kampala, this is it! And if the seller agrees to the first price you mentioned, you feel cheated. Like you could have bargained further and paid less. You need enough time to interact with the seller and negotiate to a price you personally feel is fair.

#78. Many people will choose a sure and immediate benefit over a potentially larger long-term benefit.

A common example is choosing to buy a cheap phone charger or earphones from the roadside because they cost less and work immediately, instead of buying a slightly more expensive but durable option from a trusted shop. The cheaper item often stops working after a few weeks, forcing repeated replacements. Although the long-term option would save money over time, the sure and immediate benefit of paying less today feels more attractive.

Overall, African Friends and Money Matters is an insightful and relatable book that sparks important conversations about money, culture and relationships. It will encourage you to reflect on your own experiences and make better financial choices, especially when you have seen what works better! I would recommend this book to anyone trying to create better money habits. I found it mostly eye opening, helping me see the flaws in our African way of handling money matters and also reminding me of the positive changes I have made in how I view and manage my personal finances currently.

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If you’ve read this far, I’d love to hear from you. What are some of the lessons you have learned on your own journey of handling money? Please feel free to share them in the comments section. I’m eager to learn from your experiences too.

Thank you Everyone.

Ronaldo Watmon

According to a 8th January notice, the Government of Uganda, through the Bank of Uganda, will seek to raise over UGX 1 trillion across three Treasury bond tenors: 2-year, 5-year, and 15-year.

This will be the second Treasury bond auction in January, following the auction conducted on 7th January 2026, underscoring the government’s continued reliance on domestic debt markets to meet its near-term financing requirements.

The 15-Year Bond

The 15-year bond makes its first appearance in 2026. It pays its coupons in January and July every year.

Its last primary market issuance was in November 2025, where it cleared at a cut-off price of 96.115, equivalent to a yield of 17.75% which meant an investor acquiring a UGX 1 million face value bond paid UGX 961,150. The pricing reflected a meaningful discount to face value, driven by the extended tenor and prevailing high-yield environment at the time.

With secondary market yields currently averaging around 17.8% on comparable maturities, market conditions suggest that investors should again anticipate a discounted clearing price, as yields are likely to remain elevated but at a reducing rate as already observed during January’s first auction.

Overall, this auction will provide a useful gauge of government appetite post the election period where we saw high yields on most long term securities.

Ronaldo Watmon

You saved UGX 300k every month between October, November, and December. At the beginning of January 2025, you added a cheeky UGX 100k. After reading my preview article last week, you decided to participate in today’s Treasury bond auction, placing a UGX 1 million bid for the 10-year bond offering a coupon of 16.25% before tax and 14.63% after tax.

Tomorrow, 8th January, you wake up to an SMS alert from your bank informing you that your account has been debited UGX 997,490.

You are slightly confused, you expected a debit of UGX 1 million. You send me a short text inquiring about the difference.

You receive a brief explanation: the 10-year bond was issued at a slight discount. All investors paid UGX 99.749 for every UGX 100 invested, meaning you only paid UGX 997,490 but acquired an asset with a face value of UGX 1 million.

You are delighted. You look forward to receiving your first coupon on 21st May 2026; a cool UGX 73,000. You already plan to add this to your savings and buy another bond, because you now understand the power of compounding.

Thinking ahead, you consider your intermediate and long-term financial goals and wonder whether to add the 20-year bond to your portfolio. You now ask how the 20-year bond performed at today’s auction.

You receive a similar explanation, but with a twist. Had you invested your UGX 1 million in the 20-year bond, your account would have been debited only UGX 858,810, yet you would still have acquired an asset worth UGX 1 million, almost a 15% discount.

Surprised, you inquire further.

The explanation you receive makes sense. The bond is longer-term and offers a coupon of only 15.00% before tax, which is lower than the 10-year bond. The market therefore seeks compensation by demanding a much deeper discount, similar to what was observed in the November 2025 auction, where the discount stood at about 12%.

Forward-looking, you ask what comes next.

The response is swift: the next Treasury bond auction will take place in just 14 days, on 21st January 2026, when the government will offer the 2-year, 5-year, and 15-year bonds.

You nod and smile. It has been a great day.

You are now an investor.

RONALDO WATMON

This week, we deviate from our usual topic of fixed income securities. I penned down a short reflection because it is true that often the challenge is not a lack of knowledge or information, but rather mindset that prevents action. Read on.

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There is a common adage used to describe a pessimist and an optimist: the glass half-full or half-empty concept. Consider a glass half-filled with water.

The optimist, being generally positive, considers the glass to be half full, whereas the pessimist views the same glass as half empty. Both assertions are true, without necessarily changing the facts of the situation. The difference lies not in reality, but in interpretation.

This idea of interpretation and viewpoint extends far beyond metaphors. I am writing this as I stare blankly into the horizon. Far into the distance, I can make out the faintest outline of the Ntinda skyline. The Kampala suburban outlook is generally similar: bits of storied buildings, scanty greenery, and lots of brown, rusted roofs. This is the view from the 14th floor of a storied building. Someone on the 1st floor may not be able to see further than a few hundred meters ahead.

Same city. Same environment. Different view.

Perspective.

Another common illustration is that if you were to ask a monkey to choose between a ripe yellow banana and a UGX 50,000 note, it would choose the banana. From its viewpoint, the banana represents sustenance, and the brown, paper-looking thing is just that—brown and paper-looking.

The monkey is destined to have the same perception its entire life; it is a prisoner of its fate. As humans, however, we have a unique ability, some refer to it as free will. We can choose a lot: how to think, how to live, and sometimes even how to die.

This ability to choose is precisely why everything looks different depending on how you decide to perceive it. Your current circumstances, or even your monthly salary, will forever continue to look inadequate; like you cannot put even a bit of it aside. If your mindset does not change. In that state, life will continue to feel like one battle after another.

That said, I am not suggesting this shift is easy. Changing mindset or perception is difficult. Change by itself is difficult, let alone positive change. It takes work and conscious, deliberate effort, but it is almost always guaranteed to be worth it.

In my experience, what has really helped is consistently seeking out to learn, hearing of other people’s experience has heavily influenced my money habits, I have interacted with those at the other end of the spectrum, those who have achieved this financial eureka that we all so much strive for, but in all this, I have realized that the best lessons are the ones you learn of and about yourself, especially when it comes to money habits.

I, for example, realized that I was a survivor, and that my lifestyle adjusted according to what was in my bank account; whether it would be fried mwogo with chai for breakfast or brown sweet bread from Capital Shoppers, all this depended on how much I had lying around. What change did I make from this realization? I promptly made sure that the first transaction on my bank account every month was to my savings and investment account, I then lived on whatever was left.

This realization is where discipline truly begins. Most times, when it comes to money, we are told to “build discipline,” but discipline starts with understanding how you naturally react to certain situations. It may come easily to others, but for most, it will not, and will require deliberate effort.

Because of this, feeding your mind becomes critical. Being curious. Learning and exposing yourself. Take for example the time you have spent here reading this article, this small, seemingly insignificant experiences have the potential to change your outlook on life in profound ways.

With this in mind, I have been intentional about seeking out company that challenges my original mindset, interactions that make me uncomfortable in my thinking, because I have realized that growth is uncomfortable, and sometimes even painful.

But consistency compounds.

So learn. Seek. Be deliberate.

Lest the glass remains half empty.

Ronaldo Watmon

Often, the new year represents an opportunity to set new goals and devise ways to achieve them. But usually, the difference between those who succeed and those who do not is simply execution, acting. Many people spend too much time planning and scheming, but never actually do anything about it.

Well, last month, the Government, through the Bank of Uganda, released the invitation to tender for a Treasury Bonds auction scheduled for next week, 7th January. This presents a great opportunity for those looking to get their first treasury bonds and as well for seasoned investors to lock in great returns.

Key to note for new investors, the minimum amount you can invest in treasury bonds is just UGX 100,000. Put this aside and simply start. For more information, you can refer to;

Those looking to participate should ensure they submit their instructions by at least the end of Monday 05 Jan.

The 10-Year Bond (16.25% Coupon Rate)

With a coupon rate of 16.25%, this remains one of the most sought-after bonds in the Ugandan bond market.

This was clearly demonstrated in the last auction in October 2025, where it cleared at a premium, with investors paying 102.908 per 100 meaning an investor paid UGX 1.02 million to acquire a 10-year bond with a face value of UGX 1 million. This was possibly because only about a few days later, the bond paid out a coupon in November 2025.

During next week’s auction, investors can expect pricing closer to par value, with secondary market trades currently at around 99 per 100.

This bond, which pays in May and November every year, also presents a great opportunity for investors looking to ladder their earnings.

The 20-Year Bond (15.00% Coupon Rate)

This is another attractive long-term opportunity, paying coupons in January and July each year. The next payment will be on 9th July 2026.

The last time this bond was issued was in October 2025, when it was offered at an incredible discount of over 11%, priced at 88.889 per 100. This meant an investor paid UGX 888,890 to acquire a bond with a face value of UGX 1 million.

Currently trading at around 93 per 100 in the secondary market, investors can anticipate another attractive discount.

Final Thoughts

The start of a new year presents a rare window of clarity when intentions are fresh and opportunities are visible. Government securities continue to offer a structured, predictable way to put your money to work, but like all investments, they only reward those who act.

Markets will always present reasons to wait, overthink, or hesitate. Yet wealth is rarely built by perfect timing; it is built by consistent execution. Whether you are investing for income, capital preservation, or long-term growth, the most important step is the one taken today.

As we begin 2026, take advantage of the opportunities available, but above all, take action.

Happy 2026, and wishing you many financial returns.

Ronaldo Watmon

Last week, we took a short break to participate in the Gulu City Marathon.

If you’ve been following this space, you already know that I am a strong believer in government securities as a stable, almost risk-free way of building wealth.

Every investor shares one goal: getting from Point A to Point B as quickly and efficiently as possible. So it’s only natural to wonder, can I use other people’s money to speed up the journey?

A question I increasingly hear is: “Can I borrow money from another source to invest in government bonds?”
Being a pragmatic thinker, I decided to dissect this concept and provide a grounded, realistic answer.

First Things First: Where Is This Borrowed Money Coming From?

For a retail investor or anyone still in the early stages of their investment journey, borrowing from a bank should be completely off the table.

According to the Ministry of Finance’s Debt Statistical Bulletin and Public Debt Portfolio Analysis, banks hold 29.3% of government securities, valued at UGX 15.5 trillion. Banks price loans based on risk. Retail borrowers like you and me are considered far riskier than the Government of Uganda.

This means a bank will never lend to an individual at a rate lower than what it earns from government bonds, this is because the treasury bonds represent the risk-free rate of return.

Since government borrowing is considered the safest credit in the market, banks charge individuals a premium above this rate to compensate for risk. It’s no coincidence that most banks in Uganda charge interest rates well above government securities’ returns.

For example:

• Current return on the 15-year bond: 14.22% (post-tax)

• If you borrow UGX 50 million for 15 years, your loan rate will certainly exceed this figure.

This immediately puts you in a net-loss position, your cost of borrowing is greater than your investment return.

So, Is There a Better Source of Credit?

To seriously consider borrowing, your source needs to one whose main goal isn’t profit maximization but rather a more member-focused or developmental mission. This can be in form of interest free loans from friends and relatives, Investment clubs or other cooperatives such as SACCOs.

On the other side, increasingly Ugandans in the diaspora also have a unique opportunity to practice a form of arbitrage.

Arbitrage means the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.

In this context, consider a Ugandan living in the Netherlands who can access credit at interest rates as low as 5%. By borrowing abroad at a lower cost and investing in Ugandan government bonds yielding over 14% post-tax, such an investor can capitalize on the interest rate disparity. This spread between the low cost of borrowing and the high return on government securities creates a clean and potentially lucrative arbitrage opportunity.

Now, not many of us will have access to such credit options, so for this analysis, we’ll consider something that most of us can access, Credit from SACCOs and Investment clubs.

Most SACCOs in Uganda were founded to improve the financial wellbeing of their members and such may also provide a unique opportunity to arbitrage.
I’m fortunate to belong to one of the largest SACCOs in the country, and I’ll use its structure to illustrate whether borrowing to invest in bonds can make financial sense.

Scenario: Borrowing from a SACCO to Invest in a Treasury Bond

Assumptions

• Loan amount: UGX 50,000,000

• Investment period: 5 years (60 months)

• Loan product: Unsecured salary loan

• Loan interest rate: 14% p.a. reducing balance

• Bond: 15-year T-bond, return 14.22% post-tax

• Coupons: Reinvested immediately

At first glance, the bond return appears slightly higher than the loan interest rate. This might tempt one to assume the arbitrage opportunity exists.
But let’s look deeper.

Loan Repayment Schedule (Feb 2026–Jan 2031)

• Amount borrowed: UGX 50 million

• Monthly installment: UGX 1.164 million

• Total repaid over 60 months: UGX 69 million

• Net interest expense: UGX 19 million

And this is a generous assumption, it excludes loan administration fees, withdrawal charges, loan insurance, and the common reality that you rarely receive the full loan amount disbursed.

The loan repayment schedule would look as below;

Now, What Happens if You Invest the 50M in the 15-Year Bond?

The bond pays coupons in January and July every year.

Assuming:

• All coupons are reinvested

• The yield remains constant

• Compounding is consistent

After five years:

At a rate of 14%, money doubles roughly every four years, so this level of growth is expected.

Under this setup, the investor ends up:

• Paying UGX 69 million for the loan

• Holding an asset worth UGX 106 million

• Achieving a net positive gain of UGX 37 million

This is where the strategy begins to look compelling.

It is important to note that the UGX 37m gain comes from simply reinvesting the coupons once it is paid, you will lose money if you do not reinvest this amount.

In conclusion

Borrowing to invest in government bonds is not a one-size-fits-all strategy. Bank financing is almost always a losing proposition due to high interest rates and additional loan-related costs. However, alternative financing for example through SACCOs when offered at competitive rates and structured appropriately can create a narrow but viable opportunity for positive arbitrage, especially when bond coupons are reinvested consistently. The key is disciplined execution, accurate cost assessment, and a clear understanding of your long-term financial capacity. As with all investment decisions, the numbers must lead the conversation, not the excitement of potential gains.

If you’re considering this strategy or exploring how government securities can fit into your personal wealth plan, feel free to reach out. I’m always happy to help you assess the numbers, evaluate your options, and craft a practical investment approach tailored to your goals.

Ronaldo Watmon

watmonronaldo99@gmail.com

whatsapp: +256 780820561

The much-anticipated November auction results are out.

The government sustained its high level of domestic borrowing, accepting just over UGX 2 trillion, well above the tendered UGX 1.4 trillion. Investors offered more than UGX 2.8 trillion, driven largely by institutional players who contributed over 90% of the bids. This further demonstrates the growing market sentiment and confidence in Uganda Government Treasury Bonds.

The 15-Year Bond

This bond maturing in June 2039 has a coupon(interest rate) of 15.80%

This auction went largely as expected, clearing at a yield of 17.75% with a cut-off price of 96.115.

What this means is that an investor acquiring a UGX 1 million face value bond paid UGX 961,150 consistent with secondary-market levels highlighted in my preview article.

As noted earlier, this bond pays its next coupon on 8th January 2026, barely six weeks after today’s auction. Juicy!

The 25-Year Bond

Many market commentators expected a massive yield on this bond, the longest-tenured instrument in the market. The 17.95% achieved in today’s auction is not far off from the 18% the market has been anticipating.

It cleared at a cut-off price of 94.134, meaning an investor buying a UGX 1 million face value bond paid UGX 941,340. This bond will make its next coupon payment in February 2026.

Looking Ahead

The November auction was the final primary auction for 2025, but the first auction of 2026 is scheduled for 7th January, featuring the 3-, 10-, and 20-year bonds.

For investors looking to benefit from the January coupon payment for the 15 year bond, there are still attractive opportunities for this bond on the secondary market, feel free to reach out to me for a quote!

Congratulations to everyone who invested today!

Ronaldo Watmon

The government remains biggest spender in the economy, channeling funds into key sectors such as education, infrastructure, and security. To finance these projects and services, substantial resources are required.

There are only two main ways through which the government can raise the funds needed to cover these costs: tax revenue and borrowing. Borrowing occurs from two main sources; domestically, through treasury bills and bonds, and externally, from development partners such as the IMF, World Bank, and international banks like EXIM Bank and the African Development Bank (ADB).

At the beginning of the financial year 2025/2026, government spending was projected to reach UGX 72.3 trillion, of this, 60% (UGX 37 trillion) was expected to be funded through domestic revenue and the balance(deficit) financed through borrowing.

So essentially, when you invest in treasury bills or bonds, you are financing government projects and services. So, when the Minister said “colleagues, money will come,” part of that expectation lied in funds raised through domestic borrowing.

Understanding the treasury Bond calendar

Now, each financial year, the government, through the Bank of Uganda, issues a Treasury Bills and Bonds Calendar. This document carefully outlines when various securities will be made available to investors in the primary market.

In this article we explore current 2025/26 bond calendar and highlight the key bonds that investors should be watching.

This financial year, the government plans to issue different bonds in the primary market through 13 auctions spread across four quarters; with three auctions per quarter, except Quarter 3, which will have four auctions.

Given that this is an election year, the extra auction in Q4 is likely intended to cater for election-related expenditures and the subsequent inauguration of the new government.

New Bond Tenures and Market Response

Key to note as well, when the calendar was first released by Bank of Uganda, it brought exciting news, the introduction of new 3-, 5-, and 25-year bonds. These were auctioned for the first time in July (for the 3-year) and August (for the 5- and 25-year bonds)..

However, the yield on the 25yr was notably low, investors had anticipated a higher yield, but the market could only settle for a 16.00% yield before tax for this long-term bond, currently the bond with the highest tenure.

Upcoming Auctions

By the time of this article, there is only just one month left to the end of Q2. The last auction of the year is scheduled for 26 November 2025, with the settlement following on the 27 November 2025. You can read below my analysis of the upcoming auction;

At this auction, the 2-, 5-, 15- and 25-year bond will be on offer. I explained in an earlier article the key differences between short-term bonds (2–5 years) and long-term bonds (10 years and above), and why these differences carry significant tax implications that investors should understand. You can check out that article below.

Looking Ahead

As we move closer to the election season in Q3, investors should remain optimistic and position themselves to take advantage of potentially attractive yields. Election periods often influence market activity and interest rates, creating opportunities for both new and seasoned investors.

Missed my article on how to start investing in government Bonds, find it here;

Ronaldo Watmon

On 27th November 2025, Bank of Uganda will conduct the final primary market bond auction of the calendar year. For investors looking to take strategic positions before year-end, this is the last window to do so. The next auction in the primary market will be in January 2026.

This particular auction features both shorter-tenor (2-year and 5-year) bonds and the more attractive longer-dated (15-year and 25-year) bonds.
According to BOU’s published schedule, the Government of Uganda aims to raise UGX 1.4 trillion across the four instruments with the largest allocation on the 15-year bond.

The 15-Year Bond

This bond matures in June 2039 (coupon: 15.80%), and was last reopened in October 2025. At that auction, it cleared at a discount of 5.9%, with a cut-off price of 94.103.

In practical terms:
An investor acquiring a UGX 1,000,000 face-value bond paid UGX 941,030.

For the upcoming auction, investors should expect a similar discount, supported by secondary-market pricing currently trading around UGX 96 per 100, meaning one would pay roughly UGX 960,000 for every UGX 1,000,000 face value.

A notable advantage:
The bond’s next coupon date is 8 January 2026, barely six weeks after settlement. This presents a compelling opportunity to lock in yield and earn nearly a full six-month return while holding for a much shorter initial period.

The 25-Year Bond

The 25-year bond (coupon: 16.00%), the longest-tenured government security, is also being reopened. It was first issued in August 2025, marking Uganda’s first ever 25-year bond. While the market initially anticipated significantly higher yields due to the long duration, Government maintained discipline, issuing it at a yield and coupon of 16%.

Current market sentiment, however, reflects rising long-term yields. According to BOU, the bond trades in the secondary market at approximately 17.4% suggesting a substantial discount at auction.

This implies an investor would pay roughly UGX 916,000 for every UGX 1,000,000 face value acquired.

The next coupon payment for this bond is scheduled for 5 February 2026, just under three months after auction settlement another attractive near-term cashflow consideration for long-horizon investors.

Closing Remarks

As is typical in the period leading up to an election year, Government’s appetite for domestic financing has increased significantly. In October alone, over UGX 4.2 trillion was accepted across just two auctions, clear evidence of heightened borrowing activity.

For investors with liquidity and a long-term outlook, this environment presents an excellent opportunity to lock in attractive returns before market conditions shift or yields compress.

Well-priced, long-dated government bonds remain some of the most compelling risk-adjusted investments available especially for investors seeking stable, predictable cashflows in 2026 and beyond.

If you would like help assessing which tenor aligns best with your financial goals, or if you need assistance submitting bids through the CSD, feel free to reach out.

Ronaldo Watmon

This Thursday, 20th November, several investors will be smiling all the way to the bank!
The highly demanded 10-year Treasury Bond is set to pay its half-year coupon, a generous 16.25% p.a (pre-tax) return to all current holders. This will be the second coupon payment in 2025, following the one made earlier this year.

What makes this particular payout especially exciting is the timing. The 10-year bond has been reopened three times since the last coupon, first in July, then September, and most recently at the end of October, barely 21 days before this week’s payment date.

Now, here’s the key point: every holder gets the full coupon, regardless of when they purchased the bond. Meaning, even those who bought it just over three weeks ago will still receive the same payout this Thursday as someone who has held it for months.

Take this example:
An investor who put in UGX 5 million just 21 days ago paid a modest premium of UGX 145,000, bringing their total cost to UGX 5.145 million. In return, this Thursday they will receive a coupon payout of approximately UGX 365,000 all after holding the bond for less than a month.
That’s a net gain of over UGX 220,000, earned in just 20 days.

If that’s not a financial win, nothing is.

To everyone who bought in, Congratulations!
You positioned yourself brilliantly.

If you’re keen on riding similar waves in upcoming bond auctions and want personal, strategic guidance, I’m just a message away.

Ronaldo Watmon