Business 12 October 2026 Daily Monitor (Uganda)
Shifting Investment: Investors Flock to Stocks as Treasury Bill Yields Decline
Uganda's stock market is experiencing a surge in activity as investors seek higher returns, prompted by falling yields on Treasury bills. This shift is particularly evident on the Uganda Securities Exchange (USE). Source: https://www.monitor.co.ug/uganda/business/markets/falling-treasury-bill-yields-drive-investors-to-the-stock-market-5628642
The Uganda Securities Exchange (USE) has witnessed a notable uptick in trading volumes, a trend attributed to a significant drop in returns offered by government Treasury bills. As interest rates on these typically safe government securities decrease, investors are increasingly looking for alternative avenues to grow their capital.
The stock market, with its potential for higher dividends and capital appreciation, has become an attractive destination for this capital reallocation. Reports indicate that several listed companies have recently made dividend payouts, further enticing investors and contributing to the heightened trading.
This migration of funds from fixed-income instruments to equities suggests a growing appetite for risk among Ugandan investors, or at least a strategic move to optimize returns in the current economic climate. The attractiveness of the stock market is amplified by the declining yields on Treasury bills, which are often a benchmark for risk-free returns.
Analysts suggest that this trend could continue as long as Treasury bill yields remain subdued. The increased participation on the USE not only benefits listed companies through higher liquidity but also signals a maturing investment landscape in Uganda. Further market developments will be closely watched to see if this momentum sustains.