Health Minister Jane Ruth Assen told Congress Friday that the funds withdrawn cover key programs such as HIV/AIDS (Sh243.2 billion), malaria (Sh12.1 billion), tuberculosis (Sh60.2 billion) and HR Resources Support (Sh6.78 billion).
Uganda is facing a healthcare funding crisis following cuts in US government aid, which states that US government aid has seen the Ministry of Health lose Shs 60.4 billion.
Health Minister Jane Ruth Assen told Congress Friday that the funds withdrawn cover key programs such as HIV/AIDS (Sh243.2 billion), malaria (Sh12.1 billion), tuberculosis (Sh60.2 billion) and HR Resources Support (Sh6.78 billion).
While presenting the 2025/26 Ministerial Policy Statement in front of the Congressional Health Committee, Dr. Assen sought urgent local funding to close the gap.
“The implementation of the US President’s executive order, which came into effect on January 20, 2025, has reduced foreign aid around the world,” the minister said.
“Uganda has surpassed Shs 60.4 billion after US funding withdraws from its next major program.”
Dr. Acenga said the ministry moved to promote impact by taking immediate action, including integrating services into the daily health services provided by health facilities.
The ministry also called on the assembly to mobilize resources to close the funding gap and ensure independence.
The recent cuts in health funding by the US government have raised significant concerns across the health sector, particularly in areas such as public health, Medicaid and research.
These cuts are expected to have widespread consequences and could potentially reduce access to critical services to vulnerable populations, including low-income families, elderly people, and chronically ill families.
Health organizations warn that cutting funds could lead to longer wait times, limited services and reduced critical health programs.
Furthermore, cuts in health research funding could hinder advances in medical innovation and the development of treatments for a wide range of diseases.
As the government tackles budgetary pressures, many are worried that these cuts will undermine the overall quality and accessibility of healthcare for millions of Americans.
Amid this crisis, scrutiny has intensified into the Lubowa Specialized Hospital Project.
Dr. Aceng revealed that the hospital’s progress is 45% and that only Shs 6.242 billion work is certified by June 2026.
“The physical work progress is 45%. The total construction work, including funding costs, is $379,708,967 (sh1.390 trillion).
The total amount of labor recognized by the Ugandan government is $170,566,159.60 (Sh6.246.2 billion). To be aware, Sh 1.5 billion was provided for supervisory activities in fiscal year 2025/2026,” she elaborated.
However, opposition lawmakers led by Finance Minister Shadow Ibrahim Schumju have requested an audit before approving more funds, claiming that the involvement of investor Enrica Pinetti raises accountability concerns.
“There’s no need to remind us of the country where Uganda fell in love with Italian investor Painetti,” Ssemujju said.
“It is painful enough to mention her name. In light of these issues, there is a great risk of financial losses for Ugandans if additional funds are allocated to the project.
“We recommend that the project be suspended until the special audit report is completed and Congress has deliberated on the findings.”
Despite these challenges, the Ministry of Health argues that Uganda must focus on financial self-sufficiency in health care.
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Dr. Aceng emphasized that measures have been taken, including integrating affected services into existing healthcare facilities and preparing cabinet papers for discussion and action.
She assured Congress that progress is being made at Levois Hospital, where the staff hostel and training school has been completed, but the hospital’s main complex is expected to be roofed by April 2025.
“The effective date for construction is June 10, 2019 and the estimate ends in October 2025,” she said.
“The final completion date is June 2026. The main activities carried out include: The staff hostel and training school are complete and furnished.”
Aceng said the construction of the hospital complex is ongoing and progress is around 30%.
“We expect it to be roofed by April 2025 next month,” she added.
However, growing concerns over inadequate management of funding and the urgent need for alternative resources have led Congress to face tough decisions in balancing healthcare priorities with economic accountability.
