As Uganda heads into the 2026 election period, economists and financial market experts are urging investors to remain calm and maintain a strategic approach, emphasizing that political events are unlikely to cause major fluctuations in yields.
Despite the heightened political activity, analysts say current market conditions suggest that government borrowing plans, inflation expectations, and monetary policy signals are already well understood.
This leaves little room for sudden swings in Treasury bill or bond yields driven solely by elections.
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"Elections alone do not automatically translate into higher or lower yields," said financial analyst Walugembe.
"What matters more are fundamentals such as inflation, liquidity conditions, and the government's financing needs--and those are already well signaled."
In Uganda, the market is entering the new year with Treasury bill yields in double digits and long-term bond rates approaching 18%.
Economists say these elevated rates reflect tight liquidity, strong government borrowing requirements, and generally cautious investor sentiment rather than election-related concerns.
Unless a major macroeconomic shock occurs, yields are expected to remain broadly stable throughout the election period.
For investors, the consensus is to avoid retreating to the sidelines and instead focus on careful portfolio construction and diversification.
Spreading investments across instruments and maturities is key to managing risk while taking advantage of attractive returns in the market.
Investors with a higher risk appetite may find opportunities in longer-dated government bonds.
With rates nearing 18%, these bonds offer a chance to lock in strong returns, particularly for long-term players such as pension funds and institutional investors.
Meanwhile, investors seeking lower-risk options are not left behind. Treasury bills continue to provide a solid, relatively safe, and liquid investment.
With double-digit yields, T-bills allow both individuals and institutions to preserve capital while generating steady income, even amid political uncertainty.
Market analysts note that historical election cycles often raise concerns about volatility, fiscal slippages, and policy uncertainty.
However, in the current context, most of these risks are already priced into the market.
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Strategic, disciplined, and diversified investment approaches remain the most prudent path forward for both short- and long-term investors.
Ultimately, experts say the key message for Uganda's investors is clear: maintain a steady course, monitor fundamentals, and use the election period as an opportunity to optimize portfolio decisions rather than as a reason to panic.
