Health minister Jane Ruth Aceng told Parliament on Friday that the funding withdrawn were covering key programs such as HIV/Aids (Shs243.2 billion), malaria (Shs121 billion), tuberculosis (Shs60.2 billion), and human resource support (Shs67.8 billion).
Uganda is facing a healthcare funding crisis following the U.S. government’s aid cuts that the Ministry of Health says has seen the country lose Shs604 billion.
Health minister Jane Ruth Aceng told Parliament on Friday that the funding withdrawn were covering key programs such as HIV/Aids (Shs243.2 billion), malaria (Shs121 billion), tuberculosis (Shs60.2 billion), and human resource support (Shs67.8 billion).
While presenting the 2025/26 Ministerial Policy Statement before Parliament’s Health Committee, Dr Aceng called for urgent local funding to fill the gap.
“The implementation of the US president’s executive order, effective January 20, 2025, resulted in cuts of foreign aid across the world,” the minister said.
“Uganda suffered a loss of over Shs604 billion following US withdrawal of funding from the following key programmes.”
Dr Acenga said the ministry has moved to cushion the impact by taking immediate action such as integration of services into routine healthcare services offered by health facilities.
The ministry also called upon Parliament to mobilise resources to close this funding gap and also ensure self-reliance.
The US government’s recent health funding cuts have raised significant concerns across the healthcare sector, particularly in areas such as public health, Medicaid, and research.
These cuts are expected to have far-reaching consequences, potentially reducing access to essential services for vulnerable populations, including low-income families, the elderly, and those with chronic conditions.
Health organizations have warned that reduced funding could lead to longer wait times, limited services, and a reduction in critical healthcare programs.
Furthermore, cuts to health research funding could hinder progress in medical innovation and the development of treatments for a wide range of diseases.
As the government grapples with budgetary pressures, many worry that these cuts will undermine the overall quality and accessibility of healthcare for millions of Americans.
Amidst this crisis, scrutiny has intensified over the Lubowa Specialised Hospital project, which has already consumed Shs774.469 billion yet remains incomplete.
Dr Aceng revealed that only Shs62.462 billion worth of work has been certified, with the hospital’s progress at 45% and full completion expected by June 2026.
“Physical work progress is 45%. Total construction works, including financing costs is $379,708,967 (Shs1.390 trillion).
Total amount of work certified by Government of Uganda is $170,566,159.60 (Shs62.462 billion). To note, Shs1.5 billion has been provided in financial year 2025/2026 for supervision activities,” she detailed.
However, opposition lawmakers, led by Shadow Finance Minister Ibrahim Ssemujju, have demanded an audit before approving more funds, arguing that investor Enrica Pinetti’s involvement raises accountability concerns.
“I don’t need to remind the country where and when Uganda fell in love with Italian investor Pinetti,” Ssemujju said.
“Mentioning her name is painful enough. In light of these issues, there is a significant risk of financial loss for Ugandans if additional funding is allocated to the project.
“It is recommended that the project be halted until a special audit report is completed and Parliament deliberate on the findings.”
Despite these challenges, the Ministry of Health insists that Uganda must move towards financial self-sufficiency in healthcare.
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Dr Aceng highlighted steps being taken, including integrating affected services into existing health facilities and preparing a cabinet paper for discussion and action.
She assured Parliament that progress was being made at Lubowa Hospital, with completed staff hostels and a training school, while the hospital’s main complex is expected to be roofed by April 2025.
“The construction effective date was 10th June 2019, substantial in quotation finish date is October 2025,” she said.
“The final completion date is June 2026. The main performed activities include the following; Staff hostels and training school are completed and furnished.”
Aceng said the hospital complex construction is ongoing and progress is at about 30%.
“It is expected to be roofed by next month, April 2025,” she added.
However, with growing concerns over funding mismanagement and the urgent need for alternative resources, Parliament faces tough decisions in balancing healthcare priorities with financial accountability.
