Uganda Boosts Health Budget to Shs 5.87 Trillion for FY 2025/26 Amid Rising Health Demands

Uganda has significantly increased its health sector funding for the 2025/26 financial year, allocating Shs 5.87 trillion—more than double the Shs 2.95 trillion assigned in the previous year. This surge in funding underscores the government’s growing focus on reinforcing public health infrastructure in response to mounting health challenges, declining foreign aid, and expanding national healthcare demands.

Finance Minister Matia Kasaija revealed the allocation during the budget reading at Parliament, stating that the government is committed to enhancing healthcare as a pillar of national development. “We are prioritising health to safeguard human capital and ensure no one is left behind,” Kasaija noted, reaffirming the country’s dedication to improving healthcare access, medical infrastructure, and overall outcomes.

The Shs 5.87 trillion allocation constitutes approximately 8.1% of Uganda’s total national budget for FY 2025/26, which stands at Shs 72.37 trillion. In comparison, last year’s health budget made up just over 4% of the total, highlighting a significant shift in policy and investment priorities.

Several drivers influenced the increase, including recent cuts in donor funding for health programs, which have compelled the government to enhance domestic financing. Uganda is also grappling with outbreaks of infectious diseases, an increase in non-communicable diseases, and persistent reproductive health issues. Health remains a key component of Uganda’s Human Capital Development agenda under both the NDP III and NDP IV frameworks.

Despite its importance, the sector continues to face challenges such as understaffed hospitals and ill-equipped health centers. The new budget is set to address these issues by funding the recruitment and retention of health workers, upgrading hospitals and Health Centre IIIs, expanding intensive care units, and improving cancer and maternal health facilities. Additional funds will also go toward procuring essential medicines and supplies, as well as strengthening service delivery at the district level.

While stakeholders have welcomed the increased funding, health experts caution that its effectiveness will depend on proper implementation. Delays in disbursement, poor fund absorption, and procurement inefficiencies could hinder progress. “We need more than numbers—we need the systems to use them well,” warned public health analyst Peter Eceru, urging the government to match financial input with operational efficiency.