Uganda’s health sector is confronting a Shs604 billion ($158 million) shortfall following sharp reductions in U.S. foreign aid, putting critical programs for HIV/AIDS, malaria, tuberculosis, and nutrition at risk. The cuts, announced in early 2025, have triggered urgent appeals for increased domestic financing to sustain essential services.
The funding gap threatens salaries for healthcare workers and the supply of antiretroviral drugs (ARVs), with Shs116.8 billion previously earmarked for ARVs now in jeopardy. In a tense meeting with stakeholders, the Ministry of Health stressed the urgency of bridging this gap to preserve gains in disease prevention and treatment. Uganda’s 1.5 million people living with HIV and 2.7 million protected from malaria through residual spraying are particularly vulnerable.
Health advocates have long warned of the dangers of overreliance on donor funding, which currently provides 78% of sector financing. “This is a wake-up call to prioritize local resources,” said the executive director of the Center for Health, Human Rights and Development (CEHURD).
As part of emerging solutions, the government is exploring health-specific taxes on cigarettes and alcohol, a proposal discussed at the National Dialogue on Health Financing held in Munyonyo on May 6, 2025. Such measures are aimed at strengthening financial resilience against external funding shocks.
The crisis highlights the fragility of Uganda’s health system, underscoring the need to reconfigure financing strategies to protect hard-won public health gains in 2025 and beyond.
