Uganda trade deficit with EAC hits $809 million
Imports from Kenya and Tanzania surged in August 2026, widening the trade gap despite surpluses with other regional partners.
Uganda's trade deficit with the East African Community (EAC) reached $809 million in August 2026, as imports from Kenya and Tanzania significantly exceeded exports. The country imported $1.05 billion worth of goods while earning only $241.29 million from exports to the bloc. This imbalance contributed to a wider merchandise trade deficit, which grew by 263.5 per cent from July to $817.03 million in August.
Kenya alone accounted for $714.5 million in Ugandan imports, creating a bilateral deficit of $673.45 million, while Tanzania supplied goods worth $203.6 million, resulting in a $189.8 million deficit. These shortfalls overshadowed trade surpluses with the Democratic Republic of Congo ($77.1 million), South Sudan ($56.71 million), and Rwanda ($21.89 million). The Ministry of Finance cited non-tariff barriers as a cause for the deteriorating trade balance.
A proposed Kenyan plant-health inspection fee on agricultural goods could further increase Uganda's export costs and potentially violate EAC trade rules, according to Sheema Municipality MP Dicksons Kateshumbwa. The Uganda shilling has faced pressure, with the Bank of Uganda partly blaming external imbalances for its weakness, raising concerns about imported inflation.
Why it mattersUganda's trade deficit with the East African Community widened to $809 million in August 2026 due to increased imports from Kenya and Tanzania.