Depreciating shilling threatens Kiruddu Hospital’s medical equipment procurement

What the report says

Kiruddu National Referral Hospital in Kampala is facing procurement pressure after the Uganda shilling weakened against the US dollar, pushing up the cost of imported medical equipment and creating gaps in the hospital’s approved budget. According to The Independent Uganda, the hospital says supplier quotations have risen enough to put some planned purchases for the 2026/2027 financial year at risk.

Hospital director and accounting officer Dr Charles Kabugo told Parliament’s Public Accounts Committee that management is struggling to execute a budget prepared before the latest currency decline. He pointed to plans to buy two endoscopes from India, initially budgeted at 40 million shillings, but suppliers later revised their offers upward. The hospital is also short of funds for a vitrectomy machine used in eye surgery: the item was first estimated at 60 million shillings, but the price reportedly increased to 75 million shillings, leaving a 15 million shilling deficit.

The issue came up during a committee engagement in which Tororo South MP Fredrick Angura raised concerns about how exchange-rate swings affect public institutions and whether suppliers should be allowed to change prices after committing to contracts. The situation reflects broader economic pressure from the shilling’s depreciation, which has raised the local cost of imported fuel, machinery, pharmaceuticals and other goods.

The Independent Uganda also cited Ministry of Finance figures showing the shilling weakened in September 2026 and continued to face pressure in October, prompting the Bank of Uganda to tighten policy by raising its benchmark rate to 12 percent.