India and Kenya remained the leading destinations for money sent out of Uganda in 2025 by foreigners working in the country.
However, outbound remittances declined sharply amid growing economic pressures that squeezed household and business budgets.
The Bank of Uganda Cross Border Remittance Dashboard, which tracks remittance inflows and outflows, indicates that money sent abroad fell by 20 percent to Shs1.45 trillion ($402 million) in 2025 from Shs1.8 trillion ($502 million) in 2024.
The decline was also reflected in transaction volumes, which dropped from 2.66 million to 2.12 million over the same period.
The figures suggest that foreign workers, expatriates, migrant communities, and other residents, including Ugandans, who regularly transfer money abroad, reduced their remittances as living costs increased and economic conditions tightened both in Uganda and overseas.
Despite the decline, the ranking of recipient countries remained largely unchanged, with India, Kenya, US, UK and Canada continuing to account for the bulk of funds leaving Uganda.
India remains top destination
India retained its position as the largest recipient of outbound remittances from Uganda, receiving about Shs460b ($124m), more than double the amount sent to any other country.
The outflows were largely driven by tuition payments for Ugandan students enrolled in Indian universities, medical expenses for patients seeking specialised treatment, and payments to suppliers by businesses importing pharmaceuticals, machinery, and vehicle parts.
The country’s dominance reflects India’s growing role as a destination for education, healthcare and trade services used by Ugandan households and businesses.
Kenya’s regional pull
Kenya followed in second place, receiving Shs164b ($44m). Its position reflects strong commercial and social ties between the two countries.
Kenya remains East Africa’s financial hub, with many Ugandan companies maintaining regional banking relationships and making payments for insurance, logistics, and technology services through Kenyan institutions.
Cross-border trade also contributes significantly to remittance flows, alongside family support payments and education-related transfers.
US, UK and Canada complete top five
US ranked third, receiving Shs157b ($42m), followed by UK at Shs103.6b ($28m) and Canada at Shs74b ($20m).
Education continues to be a major driver of transfers to these countries, with Ugandan families paying tuition and upkeep for students pursuing studies abroad.
Transfers are also linked to family support and financial obligations within long-established Ugandan communities living overseas.
The report shows that while the overall sums are substantial, most transactions are relatively small.
About 93 percent of transfers were valued between $0 and $499, with the average transaction standing at $152 (Shs562,400).
The payments typically cover school fees, medical deposits, family support, and settlements between small traders and suppliers.
Digital channels gain ground
The report highlights the growing shift toward digital payments, with digital channels accounting for 57.5 percent of outbound remittances, compared to 42.4 percent through cash-based channels.
Banks handled the largest share of transfers at 57.2 percent, followed by forex bureaus at 29.4 percent and payment service providers at 13 percent.
The growing use of mobile money platforms and digital payment systems is making cross-border transactions faster and more accessible, particularly for transfers within the East African region.
Early 2026 data
Data from the Bank of Uganda interactive remittance dashboard, which was launched in partnership with the International Fund for Agricultural Development, also suggests the downward trend has continued into 2026.
Outbound remittances stood at $38m in January, $36.3m in February, $36.8m in March, and $35.2m in April. India remained the leading destination each month, followed by Kenya, US, UK and Canada.
However, May recorded a sharp drop, with outbound remittances falling to just Shs5.49b ($1.46m) across 20,210 transactions, compared with Shs130.2m recorded in April.
The figures highlight the continued dependence on foreign education, healthcare, and regional business services that drive money out of Uganda.
Uganda received $2.5b in inflows while sending out only $402 million, resulting in a net inflow of $2.1b.
For every dollar sent out, more than six dollars flowed in, underscoring the country’s position as a major recipient of international remittances.
US remains the largest source of remittance inflows, contributing $700m, nearly a third of all incoming funds.
This reflects the strength of the diaspora community in North America and its continued commitment to supporting families, investments, and livelihoods back home.
UK and Canada also played significant roles, reinforcing the importance of traditional diaspora markets.
The story does not end in the West. The Middle East, particularly Saudi Arabia and the UAE, contributed a combined $640m.
These inflows highlight the growing influence of migrant workers in the Gulf region, whose earnings continue to fuel household consumption, education, healthcare, housing, and small business development in their home country.
The comparison
While India, Kenya, US, UK, and Canada are the leading destinations for outbound transfers, only three of these countries, US, UK, and Canada, are also major sources of inflows.
India is the largest outflow destination, receiving approximately Shs460b ($124m). However, it does not appear among the major inflow corridors, indicating that Uganda receives relatively little in remittances from India.
Similarly, Kenya, which receives about Shs163b ($44m), contributes only minimal inflows to Uganda despite being a key regional trading partner.
The corridor is therefore characterized by strong outbound economic activity rather than reciprocal remittance flows.
A different pattern emerges for US, UK, and Canada. Although Uganda sends Shs156b ($42m) to US, it receives approximately Shs2.59 trillion ($700m) in return, making the country the largest source of remittances and generating a net inflow of over Shs2.4 trillion.
UK displays a similar trend, sending about Shs1.22 trillion ($330m) to Uganda while receiving only Shs104b ($28m).
Canada also remains a strong net contributor, with inflows of about Shs407b ($110m) compared to outflows of only Shs74b ($20m).
This shows that Uganda’s remittance surplus is heavily supported by diaspora communities in North America and Europe. In contrast, India and Kenya primarily function as destinations for trade- and business-related payments.
This highlights the strategic importance of strengthening diaspora engagement in US, UK, and Canada while monitoring major outbound corridors such as India and Kenya to better understand the economic activities driving these transfers.