This study updates private returns to education in Uganda using consumption measures as an outcome variable, focusing on obtaining estimates using instrumental variables based on the introduction of the universal primary education policy. Unlike common findings from developed countries, the evidence from this study for a low-income country suggests that returns to education are smaller for liquidity-constrained individuals than for average individuals. The finding also suggests that smaller returns are observed for self-employed farmers than self-employed workers in non-agricultural sectors. The trend, showing smaller returns for liquidity-constrained individuals, is particularly obvious among self-employed farmers.