At least three European countries are withdrawing millions in financial aid to Uganda's government after the president Yoweri Museveni signed a severe anti-gay law.

To know how the law was signed click here

Uganda depends on donors for about 20 percent of its budget.

The Netherlands said it is suspending aid to Uganda's government but will keep supporting non-governmental organisations.


This approach has already been adopted by the governments of Norway and Denmark.

Norway is withdrawing some $8 million but will increase its support to human rights and democracy activists, while Denmark is redirecting its aid programmes worth $8.64 million away from the Ugandan government and over to private actors and civic groups.

Spokesperson of the Uganda's Finance Ministry, Jim Mugunga said the government is waiting for official communication of the aid cuts.

The World Bank has indefinitely delayed a decision on a $90 million health care loan to the country that was slated to be approved on Friday, a Bank spokesperson told BuzzFeed on Thursday.

The United States said it could also cut aid to Uganda over what the White House called "abhorrent" law.

Ugandan officials have been reacting with scorn, saying that Western governments can keep their money.

Museveni, in turn, told African leaders attending a summit in the Congolese capital of Kinshasa on Wednesday that although the matter of gay rights is "dear" to the West, "even the homosexuals need electricity."

Spokesperson of Uganda's government, Ofwono Opondo said on Thursday that the aid cuts show Ugandans "that the world does not owe them a living."

"It's actually good that they removed the aid, so that we can live within the means we have," he said.

To recall, the new law calls for life imprisonment for those convicted of engaging in gay sex. It also creates the offenses of "conspiracy to commit homosexuality" and "aiding and abetting homosexuality," both of which are punishable by seven years behind bars.

Those convicted of "promoting homosexuality" face similar punishment.

When signing the bill, Museveni said he wanted to prevent Western groups from promoting homosexuality in Africa.

Some analysts believe, however, that his enactment of the bill boosts his popularity ahead of presidential elections in 2016.