Nsambya Hospital Faces Financial Crisis Amidst Management Woes and Staff Grievances

St. Francis Hospital, Nsambya, a prominent healthcare facility in Kampala, is currently facing serious financial and management challenges. Internal audit reports and senior management documents from the past five years reveal a trail of financial mismanagement and distress that is straining the hospital’s operations.

Key issues include ongoing power struggles between the executive management and the board, compounded by perceived lukewarm corporate governance from the Kampala Archdiocese, which oversees the hospital. These internal conflicts appear to be exacerbating the financial strain.

Staff morale is reportedly low, with reports of delayed salary payments, disputes over unremitted Sacco funds, and senior doctors and consultants withdrawing their services. As of January 31, 2026, accrued salaries amounted to Shs1.2 billion, with gratuity debts reaching Shs3.83 billion. The hospital is also experiencing a “key human resource risk” with 52 staff members quitting between January and December 2025, primarily seeking better remuneration, and lacking concrete retention plans.

Furthermore, the hospital has been plagued by drug thefts, persistent stockouts, and instances of favouritism. Maintenance issues are also prominent, with critical hardware like the Intensive Care Unit (ICU) reportedly falling into disrepair. A recent audit by BDO in June 2024 highlighted significant issues with the hospital’s new financial billing system, Hospedia, noting it was not fully integrated with the accounting system and suffered from inadequate planning, data issues, and insufficient testing, leading to inaccurate data and reporting delays.

An Ernst & Young forensic audit from April 2020 also pointed to long-standing weaknesses in corporate governance, citing procurement irregularities, missing supplier documentation, and inflated prices. The hospital’s financial position remains precarious, with total payables at Shs49.3 billion against receivables of Shs11 billion by the end of January 2026.

Source: https://www.monitor.co.ug/uganda/special-reports/money-management-woes-nsambya-hospital-5489170