Lending growth slowed in January after rising to a seven-month high the previous month, according to data from the Bank of Uganda.
Loans held by commercial banks grew by 8 per cent in January to Shs18.3 trillion ($5.1bn), down from an increase of 8.5 per cent in December.
On a month-on-month basis, bank lending rose 0.1 per cent compared to growth of 3.8 per cent the month prior; it is the slowest growth in four months.
The annual increase in lending growth was driven by personal loans and household loans, building, mortgage, construction, and real estate loans, and manufacturing loans.
At a sub-sector level, on-year credit growth was mainly due to loans for the purchase of durable goods, credit to property developers, estate agents and letting agents, loans for the purchase of non-durable goods and services, and lending to food, beverages, and tobacco manufacturing entities.
