The Ugandan Shilling (UGX) has shown surprising resilience throughout a contentious election period marked by a nearly five-day nationwide internet shutdown Official data from the Bank of Uganda shows the currency appreciated from UGX 3,619.73 to UGX 3,448.18 per US Dollar between January 2 and January 21, 2026 Simultaneously, the Kenyan Shilling (KES) weakened against its Ugandan counterpart over the same period.
In a striking contrast to the digital and political turmoil on the ground, the Ugandan Shilling emerged stronger in foreign exchange markets during and after the country’s general election.
While the government enforced a “digital darkness” by ordering internet service providers to block public access from January 13 to curb misinformation and incitement, the national currency appreciated by approximately 4.7% against the US Dollar in the period.
Concurrently, the Kenyan Shilling lost ground, with one Kenyan Shilling buying fewer Ugandan Shillings, sliding from over UGX 28.00 in early January to UGX 26.80 by January 21, 2026.
What does the exchange rate data reveal? Analysis of the Bank of Uganda’s indicative rates shows a clear trend of Ugandan shilling strength. The UGX opened January at 3,619.73 per USD. It traded in a relatively tight range until a notable jump in strength on January 19 to 3,495, before closing at 3,448.18 on January 21. Against the Kenyan shilling, the trend was decisively in Uganda’s favour. On January 2, the rate was UGX 28.0499 per KSh. The UGX steadily gained strength throughout the month, breaking below the UGX 27.00 barrier and settling at UGX 26.8000 by January 21.
Commenting on the trend of the Ugandan shilling, Daniel Kathali, an economist said, “The foreign exchange market recorded a counterintuitive strengthening during a time of widespread disruptions. This suggests complex underlying financial dynamics possibly influenced by controlled capital flows, or reduced import demand, hence low demand for foreign currencies during the shutdown period,” Kathali said.
tuko.co.ke
