The Vice Chairperson of Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), Hon. Allan Mayanja, has tasked the Ministry of Finance to explain the persistent failure to operationalize the AIDS Trust Fund—over a decade after its establishment.
The AIDS Trust Fund was created following the enactment of legislation in 2014 by Parliament of Uganda, mandating a 1% levy on all alcoholic beverages to finance HIV/AIDS response initiatives across the country. Despite the Ministry of Finance reportedly collecting these funds, none have been remitted to the Uganda AIDS Commission (UAC), significantly hindering its capacity to implement key HIV/AIDS programs.
“This fund was meant to enhance the fight against HIV/AIDS in Uganda,” said Hon. Mayanja. “Since 2014, the Ministry of Finance has been collecting the money, but it has never been disbursed to the Commission. We are now summoning the Minister to explain why this fund has not been operationalized.”
Hon. Mayanja emphasized that the dormant fund has widened funding gaps within the UAC, especially following reductions in international donor support.
During a recent appearance before COSASE, the Uganda AIDS Commission’s Director of Finance, Quinto Rwotoyera, disclosed that the rollout of the fund has stalled due to contradictions between the Ministry of Finance and the Ministry of Health regarding its implementation. He explained that, despite Parliament allocating Shs 10 billion to the trust fund and approving its operationalization, disagreements between ministries over appointing a board and the provisions of the Public Finance Management Act have brought progress to a halt.
Rwotoyera said, “Initially, the Ministry of Finance asked the Ministry of Health to appoint the board, but the Ministry of Health wanted funds first before doing so. Later, the Ministry of Finance claimed that under the Public Finance Management Act, funds cannot be set aside in that manner.”
He added that the matter escalated to the President’s office, although the Commission is not privy to the correspondence. “As we talk now, the fund is not operational,” Rwotoyera told the committee.
In addition to the trust fund challenges, the UAC is also grappling with widespread non-compliance with the 0.1% budget allocation directive for HIV/AIDS mainstreaming. A 2018/19 Budget Circular had instructed all Ministries, Departments and Agencies (MDAs), as well as Local Governments (LGs), to allocate at least 0.1% of their budgets to HIV/AIDS interventions. However, a review found that 25 districts made no such allocation, and while 110 complied, actual implementation of required activities—such as developing workplace HIV policies and submitting reports—remains inconsistent.
The Auditor General’s report for the year ended December 2024 found that no funds from the AIDS Trust Fund have been remitted to the Commission since its legal creation in 2014. This prolonged funding gap continues to undermine Uganda’s goal of ending AIDS as a public health threat by 2030, a key target under SDG 3.3 and the National Development Plan III.
As COSASE continues to investigate, Hon. Mayanja has reaffirmed the committee’s commitment to ensuring transparency and pressing for immediate action to revive and operationalize the fund in line with its intended purpose.
