Uganda has significantly increased its health sector allocation to Shs 5.87 trillion in the 2025/26 national budget, marking a major rise from last year’s Shs 2.95 trillion.
The increase signals renewed government focus on strengthening public health systems amid rising disease burdens, shrinking donor support, and growing national health demands.
The allocation was announced by Finance Minister Matia Kasaija during the budget reading at Parliament on Thursday. “We are prioritising health to safeguard human capital and ensure no one is left behind,” Kasaija said, emphasising Uganda’s commitment to improving access, infrastructure, and health outcomes.
According to the Minister, the total resource envelope for FY 2025/26 amounts to Shs 72,376,481,502,103 (Seventy-Two Trillion, Three Hundred Seventy-Six Billion, Four Hundred Eighty-One Million, Five Hundred Two Thousand, One Hundred Three Shillings).
The health sector’s Shs 5.87 trillion share therefore represents approximately 8.1% of the total budget. In the previous financial year (FY 2024/25), the health sector received Shs 2.946 trillion, accounting for just over 4% of the budget.
The new allocation effectively doubles health spending, a rare increase in a sector often underfunded despite its critical importance.
Several factors contributed to this budgetary shift: Uganda has seen cuts in foreign aid to health programs, pushing the government to step up domestic funding.
The country is contending with infectious disease outbreaks, rising NCDs, and reproductive health challenges. Health is a cornerstone of Uganda’s Human Capital Development programme under NDP III and NDP IV strategies.
Hospitals and lower-level health centers remain understaffed and poorly equipped.
According to budget guidelines, the Shs 5.87 trillion allocation will go toward recruiting and retaining health workers, upgrading hospitals and Health Centre IIIs, equipping ICUs, cancer units, and maternal health facilities, procuring essential drugs and supplies, and strengthening district-level service delivery.
While the increase is welcome, health experts warn that disbursement delays, absorption gaps, and procurement inefficiencies could weaken the actual impact of the funds.
“We need more than numbers—we need the systems to use them well,” says Peter Eceru, a public health analyst.