This study was to examine the influence of capital depreciation on the cost of living mainly to the people living in central region of Uganda kampla the case study. To determine the relationship between capital depreciation and cost of living on the people living in central Region, Kampala Uganda. To examine the influence of capital depreciation on the small and medium enterprises in Central Uganda Kampala, Uganda. To determine the effect of capital depreciation on the small and medium enterprises in Uganda. A total of 70 respondents and the study applied both qualitative and quantitative research designs where interviews, questionnaires and observation methods of data collection were used. Data was collected from both primary and secondary sources. Data were processed and analyzed using formal tables, pie charts, graphs, narrative text. According to the study finding, 39(42%) of the respondents revealed that consumer spending is one factor indicates the relationship between capital depreciations. Whereby when there is capital in depreciation there is more likely people over spend their money interns of buying goods and services like food, security, clothes due to the depreciation in capital this happened in Kampala region mostly due to the Covid-19 pandemic which left business owners overspending money to an extent of spending even business capital. Therefore, this implies that when capital depreciate there is more likely to consumer over spend money hence affect people’ cost of living. There was the need for the government to increase on the support for both small and medium enterprise as well as setup clear policies that boosted people’s businesses. research.miu.ac.ug/publications 213 METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE) ISSN 1813-4238 Vol. 2 Issue 4, July - 2023, Pages: 213-225