Uganda · Uganda Securities Exchange
Uganda Stocks & the USE
The Uganda Securities Exchange is small but open — to locals, the diaspora and foreign investors alike. Here is how to start, what it costs, and how shares are taxed.
- Exchange
- Uganda Securities Exchange (USE)
- Where to buy
- A licensed USE broker
- Account
- An SCD account
- Foreign ownership
- Open — no general cap
- Dividends tax
- 10% on listed shares (individuals)
- Capital gains
- No separate CGT — see notes
01The Uganda Securities Exchange, in short
The USE is Uganda's stock market, where you can buy part-ownership of listed companies — banks, telcos and more — and share in their profits through dividends and price growth. Shares are held electronically in an SCD account in your name.
For live prices and the list of companies, see the Uganda Securities Exchange.
02How to buy shares in Uganda
- 1
Choose a licensed broker
Pick a USE member firm. Foreign and diaspora investors usually choose one that also offers custody.
- 2
Open an SCD account
Open a Securities Central Depository account through the broker — you'll need a valid ID or passport and passport photos. Opening it is free, with no annual charges.
Foreign or diaspora investor? See below ↓ - 3
Fund the broker's trust account
For local orders the USE requires payment upfront, so you deposit funds into the broker's designated trust account before trading.
- 4
Place an order
Tell your broker which shares to buy; they post the order on the USE's Automated Trading System during trading hours.
- 5
Settle and hold
Once your order is matched the shares are credited to your SCD account, and dividends are paid to your bank account.
Often unclear — here's the answer
For foreign & diaspora investors
- Foreign ownership is open. Uganda's capital markets carry no general foreign-ownership cap — non-residents trade USE-listed shares on the same terms as locals.
- The URA TIN is the easy part. You need a URA Tax Identification Number. A non-resident registers on the URA e-services portal with a passport — it's free, and there's no requirement to appoint a local tax representative.
- You trade through a licensed broker. Open an SCD account with a USE member firm (a valid passport and photos), fund the broker's trust account upfront, and they place your order on the exchange.
- Capital gains: a grey area, not a clean exemption. Uganda has no separate capital gains tax, and a passive investor's gain on listed shares is usually untaxed — but there's no statutory exemption, and the URA has argued some long-term holders are “in the business of investing” and therefore taxable (the Chandaria case). Take advice on a large holding.
- Dividends: 10% on listed shares. Dividends from USE-listed companies are taxed at 10% for individuals; the general non-resident rate is 15%, often reduced under a double-tax treaty.
- Profits repatriate freely. With no exchange controls, dividends and sale proceeds convert back to your currency — leaving you with currency risk, not capital controls.
Rules and rates change — verify against the Bank of Uganda, USE and URA before you commit. This is information, not tax or investment advice.
03Dividends & tax
Three things shape what you keep from a Ugandan share:
- Dividends from USE-listed companies are taxed at 10% for individuals, deducted before payout (the general non-resident rate is 15%, which a treaty may reduce).
- There is no separate capital gains tax — but, unlike Kenya, no clean exemption either: a passive holder's gain on listed shares is usually untaxed, though the URA has challenged some long-term holders as being in the business of investing.
- Each trade carries a brokerage commission set by the USE and CMA, plus small regulator levies.
04Common questions
How do I start buying shares in Uganda?
Open an SCD account through a licensed USE broker, deposit funds into the broker's trust account, and place a buy order. The shares are then held electronically in your SCD account.
Do I pay capital gains tax on USE shares?
Uganda has no separate capital gains tax. A passive investor's gain on listed shares is usually untaxed — but, unlike Kenya, there is no clear statutory exemption, and the URA has argued that some long-term holders are “in the business of investing” and therefore taxable (the Chandaria case). Take professional advice on a large holding.
How are dividends from Ugandan shares taxed?
Dividends from USE-listed companies are taxed at 10% for individuals, deducted before payout. The general rate for non-residents is 15%, which a double-tax treaty may reduce.
Can foreigners buy shares on the USE?
Yes. Uganda's capital markets are open to foreign investors with no general ownership cap, and there are no exchange controls — so dividends and sale proceeds repatriate freely.
Shares, bonds and bills — one honest number.
Tamias totals every USE share, treasury bond and bill you own across Uganda and East Africa, computes your true return after tax and costs, and nudges you before every dividend and maturity.
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