Across the country, breadwinners say salaries have remained largely stagnant while the cost of essential goods and services—school fees, healthcare, food, transport and utilities—continues to rise, creating what economists describe as an “income-growth gap.”
While official economic indicators often point to stability, many households say the reality at home tells a different story.
A salary that could comfortably support a family a few years ago is now stretched thin across rent, school requirements, and basic household items.
In Katete suburb in Mbarara, Patrick Mucunguzi, a secondary school teacher and father of four, says his salary has not changed in years even as expenses continue to rise.
“I earn the same amount I did three years ago, but my eldest son just entered Senior One,” Mucunguzi said.
“Between his requirements and the price of sugar and soap, I feel like I’m drowning. My salary was meant for a family that no longer exists in this economy. Without an increment, we are simply working to remain poor.”
The pressure is not limited to the public sector. Sarah Keminyeto, a mid-level accountant in the private sector, says even households with two working adults are struggling to maintain their previous standard of living.
“We used to have meat twice a week; now it’s a luxury for month-end,” she said. “My husband and I are both working, but our needs have outgrown our income. It’s a silent battle because you maintain a professional image at work, but back home, you are negotiating with the charcoal vendor for a discount. Employers must realise that the 2022 shilling is not the 2026 shilling.”
Economists warn that this growing gap between wages and living costs is creating a generation of the “working poor”—people who are employed but increasingly trapped in debt and unable to build savings.
Many workers have turned to high-interest mobile money loans to survive until the next payday, creating a cycle that further erodes their purchasing power.
Side businesses, often promoted as a solution to stagnant salaries, are also proving risky for many Ugandans.
Small entrepreneurs face challenges ranging from theft and fraud to taxes, licensing fees and enforcement operations against informal businesses.
Martin Muhangi, who recently started a mobile money business to supplement his salary, says he lost his capital just days after starting.
“On my third day, my worker was conned and Shs1.7 million was stolen. That was literally my capital,” he said.
Small business owners also cite high trading licence fees, local government dues and digital tax requirements as major challenges that eat into already thin profit margins.
Street vendors and small traders also risk eviction and confiscation of goods during city enforcement operations, which can wipe out their entire investment.
As incomes stagnate and side businesses become more difficult to sustain, the traditional social safety net—where employed family members support relatives in rural areas—is also weakening, creating wider economic pressure beyond urban households.
Many workers now say without significant salary adjustments to match the rising cost of living, the financial pressure facing Ugandan families will continue to intensify, turning what has been a quiet household struggle into a broader economic concern.