The Finance Ministry observed that since the onset of the FY 2025/26, key sectors such as personal and household loans, trade, building construction and real estate and agriculture still dominate credit allocations.
Commercial banks loans foster economic expansion and development by channeling idle capital from savers to browsers who can put it to productive use.
During the period, the Finance Ministry explains in the performance of the economy report for October that personal and household loans continued to receive the largest share of credit approved, accounting for 24.7 percent (Shs477.5 billion) of the total in October 2025.
This was followed by trade at 16.2 percent (Shs312.8 billion), building, construction and real estate at 12.8 percent (Shs247.9 billion) and business, community, social and other services at 11.9 percent (Shs229.7 billion). Other major recipients of credit included agriculture at 11.8 percent and manufacturing at 11.3 percent.
The value of credit approved for disbursement in October 2025 totaled Shs1.9 trillion, slightly less than Shs2.1 trillion in September 2025. Despite this, the approval rate (loan applications against credit approvals) was 76.7 percent, slightly higher than 75.5 percent in September 2025.
In November 2025, Shs2.045 trillion was raised from three auctions of government securities on the domestic primary market.
A total of Shs605.40 billion was raised from T-Bills, while Shs1.4 trillion was raised from T-Bonds.
Of the total amount raised, Shs376.35 billion was used for refinancing of maturing securities while Shs1.6 trillion was used to finance other items in the budget.
The government often issues treasury bills and treasury bonds to finance its fiscal operations due to continuous budget deficits.
During November 2025, yields (interest rates) on the 91-day and 364-day Treasury Bills declined to 11.5 percent and 14.9 percent in November 2025 down from 11.7 percent and 15 percent in October 2025 respectively.
The yield on the 182-day tenor slightly edged upwards to 13.7 percent in November 2025 from 13.1 percent recorded the previous month. All auctions for Treasury Bills were oversubscribed, with the average bid to cover ratio recorded at 1.66 in November 2025.
In October, the government re-opened the two-year, five-year, and 15-year and 25-year tenor bonds on the primary securities market.
Except for the two-year tenor, yields edged upwards for all bonds in comparison to the yields recorded in the previous auction of similar bonds.