- The Ugandan shilling crossed 4,000 shillings per US dollar for the first time on record, driven by heavy demand from energy importers and offshore investors
- October 2026 market data ranked Uganda's shilling as the worst-performing African currency across monthly, three-month, and year-to-date timeframes
- The Kenyan shilling remained relatively stable at around KSh 129.94 per dollar in mid-October, backed by strong foreign exchange reserves
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Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, labour and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.
The Ugandan shilling has become Africa's worst-performing currency.
Source: UGC
It slumped past the 4,000-per-dollar mark for the first time on record and topped the continent's worst-performing currencies list across every measured timeframe in October 2026.
Commercial banks in Kampala quoted rates as high as 4,040 shillings per dollar on Monday, October 13, 2026.
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The currency has lost more than 300 shillings against the dollar since March, when it traded at approximately 3,604. According to October 2026 market data, the shilling posted a 7.29% monthly depreciation, a 12.06% three-month decline, and a 14.68% year-to-date loss.
The monthly rankings place the Ugandan shilling well ahead of its closest peers.
The Malagasy ariary came second with a 4.70% monthly change, followed by the Moroccan dirham at 4.29%, the Tunisian dinar at 4.14%, and the Comorian franc at 3.85%.
Over three months, the Zambian kwacha emerged as the second-worst performer at 9.28%, trailing Uganda by a wide margin.
Year-to-date, Libya's dinar leads all losers with an 18.79% depreciation, followed by Uganda at 14.68% and Ghana's cedi at 12.31%.
Forex dealers attributed Uganda's slide to aggressive dollar purchases by manufacturers, energy importers, and traders building up stock ahead of the year-end import peak, compounded by elevated global crude oil prices.
Selling pressure from offshore investors exiting positions in local government securities added further strain to the interbank market.
Top 10 Worst-Performing African Currencies in October 2026
Daniel Kathali, an economist, explained how to interpret the USD currency pairs.
He explained that the positive change in the figures shows the percentage increase in the US dollar’s value against selected African currencies over one month, three months and the year to date.
"A positive change in a currency pair, such as USDUGX, means that more units of the Ugandan shilling are required to buy one US dollar, indicating that the shilling has weakened against the dollar.
The percentage increase in the exchange rate is not exactly equal to the percentage loss in the local currency’s value because the two measures use different reference points. The rankings therefore identify the African currencies against which the US dollar recorded the largest gains during the respective periods, rather than measuring the precise percentage depreciation of each local currency," he explained.
Rank | Currency | Pair | Monthly Change |
1 | Ugandan shilling | USD/UGX | +7.29% |
2 | Malagasy ariary | USD/MGA | +4.70% |
3 | Moroccan dirham | USD/MAD | +4.29% |
4 | Tunisian dinar | USD/TND | +4.14% |
5 | Comorian franc | USD/KMF | +3.85% |
6 | São Tomé and Príncipe dobra | USD/STN | +3.79% |
7 | Cape Verdean escudo | USD/CVE | +3.73% |
8 | Central African CFA franc | USD/XAF | +3.48% |
9 | West African CFA franc | USD/XOF | +3.48% |
10 | South African rand | USD/ZAR | +2.39% |
Top 10 Worst-Performing African Currencies Over Three Months
Rank | Currency | Pair | Three-Month Change |
1 | Ugandan shilling | USD/UGX | +12.06% |
2 | Zambian kwacha | USD/ZMW | +9.28% |
3 | Malagasy ariary | USD/MGA | +5.82% |
4 | Moroccan dirham | USD/MAD | +4.97% |
5 | Tunisian dinar | USD/TND | +2.40% |
6 | Central African CFA franc | USD/XAF | +2.37% |
7 | West African CFA franc | USD/XOF | +2.37% |
8 | São Tomé and Príncipe dobra | USD/STN | +2.34% |
9 | Comorian franc | USD/KMF | +2.18% |
10 | Cape Verdean escudo | USD/CVE | +2.07% |
Top 10 Worst-Performing African Currencies Year-to-Date
Rank | Currency | Pair | YTD Change |
1 | Libyan dinar | USD/LYD | +18.79% |
2 | Ugandan shilling | USD/UGX | +14.68% |
3 | Ghanaian cedi | USD/GHS | +12.31% |
4 | Moroccan dirham | USD/MAD | +7.65% |
5 | Tanzanian shilling | USD/TZS | +7.38% |
6 | Comorian franc | USD/KMF | +5.02% |
7 | Cape Verdean escudo | USD/CVE | +4.88% |
8 | Central African CFA franc | USD/XAF | +4.87% |
9 | West African CFA franc | USD/XOF | +4.87% |
10 | São Tomé and Príncipe dobra | USD/STN | +4.78% |
Bank of Uganda's Response and Consumer Impact
As reported earlier on TUKO.co.ke, the Bank of Uganda opted against direct market intervention, instead raising the cash reserve requirement for commercial banks to 13.5% from 11%, effective September 24, 2026, the third such increase in under two years.
Governor Michael Atingi-Ego, speaking at the 9th Annual Bankers Conference in Kampala on September 18, offered reassurance: "Bank of Uganda has what it takes to stabilise this exchange rate. So, be still. All will be fine."
The weaker shilling is already feeding into consumer prices. Fuel surpassed 7,000 shillings per litre in parts of the country, while diesel inflation climbed to 42.5% year-on-year in September from 40.1% in August. Petrol inflation rose to 30.9% from 28.5% over the same period.
Source: TUKO.co.ke