How the Rising Cost of Living is Changing Daily Life in Kampala
Introduction
A few years ago, a plate of posho and beans in Kampala would cost 2,000 UGX. Today, the same meal goes for nearly double the price. Transport fares are unpredictable, rent is climbing fast, and market prices rise almost every week. The rising cost of living in Kampala isn’t just about numbers—it’s reshaping how ordinary Ugandans live, work, and survive each day.
What’s Driving the Rising Cost of Living in Kampala?
1. Inflation and Global Pressures
According to the Uganda Bureau of Statistics, Uganda’s average inflation for FY 2024/25 stood at 3.4%, with food crops inflation hitting 4.7% in June 2025 (up from 4.3% in May). Much of this is driven by the strong US dollar and global fuel prices, which directly increase costs in Kampala.
2. Local Taxes & Policy Changes
Increased fuel and mobile money taxes have filtered down to everyday expenses, making basic commodities and services harder to afford.
3. Supply Chain Disruptions
From imported fuel to local produce, transport and distribution costs are high. This means even food grown in Uganda—like beans or bananas—arrives at markets with inflated prices.
How Daily Life is Changing in Kampala
Food & Markets
The cost of cooking bananas (matoke) has jumped by 37.7% year-on-year as of June 2025.
Dry beans prices rose by 12.1% in June, compared to 9.2% in May.
Everyday vegetables like tomatoes (+12.4%) and leafy greens (+11.9%) also surged earlier this year.
Families are cutting down from three meals to two, while protein-rich foods like meat and fish have become luxuries.
Many shoppers are moving from supermarkets to local markets in search of cheaper alternatives.
Transport
Fuel price hikes have pushed boda boda fares up.
A taxi ride within Kampala that used to cost UGX 1,000 now averages UGX 1,500.
Inter-city fares have nearly doubled: Kampala-Masaka trips rose to UGX 10,000, from around 5,000 UGX.
As a result, more people are walking longer distances, cycling, or relying on remote work when possible.
Housing
Rent in prime central Kampala is soaring: a 2-bedroom apartment averages UGX 2.3 million per month (~$610).
Outside central areas, 1-bedroom apartments cost UGX 320,000–700,000, while 2-bedrooms go for UGX 1.5–1.8 million.
Some neighborhoods have seen rent hikes of up to 30% year-on-year, pushing families to the outskirts or into shared housing.
Lifestyle & Social Life
Eating out has reduced drastically, with more families cooking at home.
Entertainment spending has shifted: fewer nights in bars and cinemas, more home-based activities.
Weddings, parties, and other celebrations are being downsized as people cut costs.
How Ugandans Are Coping
Side Hustles: From vending to online gigs, many city residents are taking up extra jobs.
SACCOs & Borrowing: Savings groups are becoming lifelines for households struggling with rent and school fees.
Tighter Budgeting: Families prioritize essentials like food, rent, and education over luxuries.
Urban Farming: Some city dwellers are growing vegetables in backyards and containers to reduce reliance on markets.
The Bigger Picture
The rising cost of living isn’t just a household challenge—it’s reshaping Kampala’s social and economic landscape. Businesses are losing customers, schools are reporting delayed fees, and stress levels are rising. Left unchecked, the crisis could widen inequality and force more families below the poverty line.
Conclusion
Kampala’s people are resilient, but resilience has limits. As prices continue to climb—whether it’s matoke up 37%, boda fares doubling, or rent shooting 30% higher—daily life is being reshaped. The big question is: how long can ordinary Ugandans adapt before deeper reforms are required?
💬 What changes have you noticed in your daily life due to Kampala’s rising cost of living? Share your story in the comments below.
