Uganda Loses Shs604bn in U.S. Health Aid as Dr Aceng Defends New Lubowa Hospital Funding

Uganda’s Health Minister, Dr. Ruth Acen,g has revealed that the country has suffered a major blow in foreign assistance following the United States government’s sweeping aid cuts. These cuts resulted in a loss of Shs604 billion in funding for vital health programmes, including HIV/AIDS, malaria, tuberculosis, nutrition services, and salary support.

Speaking before Parliament’s Health Committee during the review of the Ministry of Health’s 2025/26 Ministerial Policy Statement, Dr Aceng said the budget cuts followed the implementation of a U.S. presidential executive order effective January 20, 2025, that slashed foreign aid worldwide.

“The implementation of the U.S. President’s executive order, effective 20th January 2025, resulted in cuts of foreign aid across the world. Uganda suffered a loss of over Shs604 billion following the U.S. withdrawal of funding from key programmes,” said Dr Aceng.

She added that the Ministry had since taken steps to integrate affected services into routine healthcare and had also prepared a cabinet paper for discussion. However, she stressed the urgent need for Parliament to identify alternative domestic resources to sustain the country’s healthcare delivery.

“The Ministry of Health calls upon Parliament to mobilise resources to close this funding gap and ensure the health sector becomes self-reliant,” she added.

Lubowa Hospital Project Under Spotlight

Dr Aceng also gave an update on the much-criticised Lubowa Specialised Hospital project, revealing that while the Government of Uganda has so far certified construction works worth US$170.5 million (approximately Shs62.4 billion) by December 2024, a staggering Shs774.4 billion has already been approved for the project by Parliament.

She further noted that an additional Shs1.5 billion has been earmarked in the 2025/26 budget to facilitate supervision of ongoing construction works.

“Physical work progress is at 45%. Total construction works, including financing costs, is US$379.7 million (Shs1.39 trillion). The hospital complex itself is at about 30% completion and is expected to be roofed by April 2025,” she said.

According to the Minister, staff hostels and the training school at the site have already been completed and handed over, with training programs ongoing. The hospital’s completion is slated for June 2026.

Opposition Criticises Fresh Funding

However, fresh allocations to the Lubowa Hospital project have drawn sharp criticism from Opposition lawmakers. During the debate on the recently approved Shs4.255 trillion Supplementary Budget, which included Shs298 billion for Lubowa, Shadow Finance Minister Ibrahim Ssemujju Nganda led calls to halt further disbursements to the controversial project.

“Even the mere mention of the name Enrica Pinetti causes me pain,” said Ssemujju, referring to the Italian investor behind the hospital’s construction. “There is a significant risk of financial loss for Ugandans if additional funding is allocated. It is recommended that the project be halted until a special audit is completed and Parliament deliberates on its findings.”

The dual crises—a major funding shortfall from donor withdrawal and the mounting controversy over flagship infrastructure projects—place Uganda’s health sector at a crossroads.

Dr Aceng’s appeal to Parliament to seek domestic solutions highlights a growing urgency to reduce dependency on foreign aid and ensure financial accountability in health investments.