Parliament has approved a series of supplementary funding requests to safeguard Uganda’s health sector from the financial shock caused by the United States’ withdrawal of foreign aid.
The Ministry of Health is among the biggest beneficiaries, receiving shs 69.693 billion to address immediate shortfalls created after Washington cut support to essential health services. Officials say the funds will help prevent drug stockouts and avert a potential health crisis.
Another major allocation went to National Medical Stores (NMS), which secured shs 115.76 billion for wages, procurement of medical and health supplies, and distribution of additional GAVI-supported vaccines expected in the 2025/26 financial year.
The money will also cover supplies handed over to government by USAID and plug gaps created by recent U.S. executive orders that halted key aid programmes.
The funding requests stem from a January 2025 directive by President Donald Trump, imposing a global ban on U.S. foreign aid. The decision has left Uganda scrambling for resources, with the Health Ministry alone seeking shs 503.263 billion to bridge the financing hole left by USAID.
These details are captured in the shs 8.104 trillion Supplementary Schedules approved by Parliament on 2 December 2025.
Government plans to borrow shs 4.278 trillion from foreign lenders and shs 3.770 trillion from local banks to cover unfunded priorities in the 2025/26 national budget—pushing the overall budget from shs 72.376 trillion to shs 78.631 trillion.
According to documents tabled before Parliament, the Ministry of Health was also allocated shs 17.95 billion for services previously funded by the U.S. government, including laboratory operations, the Health Management Information System (HMIS), water and sanitation programmes, and neglected tropical diseases.
NMS received an additional shs 269.777 billion, mainly to support the newly completed UPDF Referral Hospital in Mbuya, handle wage shortfalls, and manage expanded GAVI-related storage and distribution demands.
The Uganda Heart Institute (UHI) secured shs 40.047 billion for civil works at its upcoming facility in Naguru, funded through loans from BADEA, the OPEC Fund and the Saudi Fund for Development.
However, Parliament’s National Economy Committee recently raised concerns about delays in starting the US$73 million (shs 255.372 billion) project, nearly two years after the loans became effective. MPs cited inadequate power supply at the site and misaligned completion timelines from funders.
To address operational constraints in emergency response, the Health Ministry was also granted shs 10 billion for the National Ambulance System, after reporting that most ambulances are grounded due to fuel shortages and mechanical breakdowns.
Parliament further approved shs 249 million from UNICEF for nutrition programmes at Moroto Regional Referral Hospital in the Karamoja subregion. The funds had been released after the approval of the FY 2025/26 Budget but required supplementary approval before use.
Despite the latest allocations, officials warn that the shs 503.263 billion provided is only a fraction of what the sector requires.
In April 2025, the Ministry of Health highlighted unfunded and underfunded priorities amounting to shs 1.7768 trillion, underscoring the scale of financial strain following the USAID aid freeze.
