The government has allocated Shs5.23 trillion towards health services in the country in the 2026/2027 financial year, an amount lower than the Shs5.87 trillion in the 2025/2026 financial year.
Finance Minister Henry Musasizi, while delivering the budget speech in Kampala on Thursday, highlighted the achievements in the 2025/2026 financial year and revealed priorities for the next financial year.
‘The government has allocated Shs5.23 trillion to the health sector in the 2026/2027 financial year. The funding will focus on: maternal and child health, nutrition improvement, expanded immunisation, and prevention and treatment of non-communicable diseases,’ he said.
The Minister also said their priority is on the provision of essential medicines, strengthening specialised healthcare services, improving emergency response systems and exploring feasible pathways towards Universal Health Coverage.
Among the key achievements in this financial year, Mr Musasizi said was an increase in domestic allocation towards drugs and health supplies in the 2025/2026 financial year to shield the country from shocks caused by the declining donor funding.
‘Government sustained its policy of progressively increasing investment in essential medicines and health supplies. Accordingly, funding through the National Medical Stores was increased by Shs145.33 billion to Shs862.93 billion in the 2025/2026 financial year,’ he said.
According to a 2025 report by Uganda National NGO Forum and the Center for Health, Human Rights and Development (CEHURD), the country’s health sector is buckling under a catastrophic drop in donor support. Donor support contributed up to 49 percent of the funding for the sector in 2022, according to the report authors.
The report shows that in 2022, the external (donor) funding towards the sector stood at Shs2.3 trillion. But in 2025, external funding had declined to Shs1.3 trillion.
The report further indicates that this sharp decline, by more than half within four years, amid insufficient increases in domestic resource allocation to plug the gaps and increasing health needs, has exposed deep structural vulnerabilities and left many vulnerable Ugandans struggling to access essential care.
But Mr Musasizi said the government will continue to increase domestic financing for essential health commodities to substantially reduce reliance on donor support.
‘This will guarantee uninterrupted access to essential medicines like antiretroviral medicines, antimalarial drugs, vaccines and immunisation supplies, laboratory commodities, and anti-tuberculosis medicines,’ he said.
The Minister also said the government continued to modernise healthcare infrastructure and equipment, where 17 Regional Referral Hospitals and 25 General Hospitals were equipped with Neonatal Intensive Care Units. He said, in addition, 14 Regional Referral Hospitals received CT scan machines.
‘Construction and upgrading of 31 health facilities across Karamoja is ongoing. The government also completed high-capacity medical waste incinerators in Fort Portal, Gulu, Mbarara, KCCA and Lira. Busolwe, Gombe and Kawolo Hospitals were also rehabilitated,’ he said.
Mr Musasizi said the government also continued to promote preventive healthcare through immunisation, disease prevention and nutrition programmes.
He also highlighted expansion of specialised healthcare services in oncology, cardiology and other fields, reducing the need for treatment abroad.
‘The Uganda Heart Institute conducted 634 cardiac interventions, including open-heart, closed-heart, vascular and catheterisation procedures. In April 2026, the Uganda Cancer Institute successfully performed the country’s first bone marrow transplant,’ he said.
Water and sanitation
Mr Musasizi said they have continued to invest heavily in water and sanitation, which largely falls under the Ministry of Water and Environment.
‘Government has allocated Shs1.013 trillion in the 2026/2027 financial year to further expand access to safe water and sanitation services across the country,’ he said. ‘The objective is to ensure universal access to safe water and sanitation services.’
The Minister also highlighted past achievements in the sector. ‘Access to clean and safe water remains fundamental to public health, human dignity and economic productivity. Government has, therefore, continued investing heavily in water supply and sanitation infrastructure across the country,’ he said.
‘Access to improved water sources continues to expand, with 71 percent of households now having access. Coverage stands at 68 percent in rural areas and 74.5 percent in urban areas,’ he said.
He also said in the 2025/2026 financial year, safe water access was extended to 553 villages. ‘Over 200 large solar-powered water and sanitation systems, several public sanitation facilities and faecal sludge treatment plants were completed in several districts,’ he added.