"We were holding a peaceful strike but police came and fired bullets and tear gas, several students have been injured -- one was hit by a stray bullet and was taken to hospital," student leader Ivan Boowe told AFP.
Police said only one student was wounded.
"There was a student who was hit by a stray bullet and we took him to hospital, but it was a minor injury," said senior police officer Sam Omara.
The students, from the capital's Makerere University, were calling for graduation fees to be lowered, from some 85 dollars to 35 dollars.
Since the beginning of this year, Makerere students have staged numerous demonstrations against rising costs.