Uganda signaled a bold new chapter in its health sector by raising the national health budget and laying out a comprehensive roadmap to achieve Universal Health Coverage (UHC) through sustainable financing and system-wide reforms.
For the 2025/26 financial year, the government allocated UGX 4.48 trillion to the health sector, almost double its allocations last financial year’s allocation and now representing 8.1% of the national budget.
Uganda aims to gradually raise the health sector’s share of the national budget to 10% and eventually to 15% by 2040. Additionally, health spending as a percentage of GDP is set to increase from the current 2% to 5%.
The government also plans to boost health-specific taxes on cigarettes, alcohol, and sugary drinks, starting with a 15% increase in the short term and rising to 50% in the medium term.
Guided by the African Leadership Meeting (ALM) Declaration, Vision 2040, and national strategic frameworks such as the National Health Policy and the Human Capital Development Plan, Uganda is prioritizing health financing reforms. The guidance from government’s consolidated input from Parliament, Ministries, Health Development Partners, Civil Society, the private sector, and academia to develop a unified country position for reform. These coordinated efforts were shaped during a National High-Level Dialogue on Sustainable Health Financing ahead of the allocations.
At the heart of the reform agenda was a push to increase domestic resources for health. Beyond taxation, the government is exploring innovative financing options such as oil levies, blended finance mechanisms, debt restructuring, and climate financing.
The fast-tracking of the National Health Insurance Scheme (NHIS), including community-based models, is a key component of ensuring long-term financial protection. Efforts are also underway to deepen private sector engagement, including through credit guarantees and a proposed medical credit scheme.
Recognizing that inefficiencies drain up to 40% of health resources, Uganda will invest in digitizing service delivery, harmonizing donor funds, and improving procurement systems. A key target is to allocate 30% of the health budget to community health systems and Primary Health Care (PHC) by 2030—key to preventing diseases and reducing long-term costs.
The strategy includes integrating services, harmonizing donor funding with national priorities, digitizing health systems, and strengthening procurement, diagnostics, and human resource management.
With over 13% of Ugandans currently facing catastrophic health expenditures, equity and financial protection are central to the new strategy. Uganda will accelerate prepayment and risk-pooling mechanisms, regularly update its resource allocation formula, and invest in underserved regions—especially through digital tools.
Equity and financial protection remain central to the health financing strategy. With over 13% of Ugandans facing catastrophic health expenditures, the government is prioritizing prepayment and risk-pooling mechanisms. These are expected to serve as safety nets and minimize out-of-pocket spending. Investments will target underserved areas and ensure that essential services are available to all, with resource allocation formulas revised to reflect fairness and disease burden.
Leadership and governance reforms will also play a pivotal role. Uganda plans to strengthen coordination structures by adopting a unified national plan, budget, and monitoring framework. The government will enhance political commitment, digitize budget and expenditure tracking, and improve social accountability mechanisms. Legislative reviews are underway to harmonize financing policies and reduce fragmented budgeting.
Uganda’s new health financing blueprint provides a roadmap for building a resilient, inclusive, and sustainably funded health system. The government is calling on all partners to align with this shared vision and support its implementation. Progress will be tracked through a post-dialogue report and monitored using ALM benchmarks and the Africa Scorecard on Domestic Health Financing.
Uganda also plans to participate in biennial meetings of African Ministers of Finance and Health to assess regional progress on health financing reforms.
As Uganda moves toward universal health coverage, this renewed investment and reform agenda represents a foundational shift—a moment where political will, technical consensus, and financial planning converge to chart a healthier future for all Ugandans.
