The US embassy at hand said the decision transpired the Ugandan government’s unclear suspension of GiveDirectly, a non-profit organisation that was running the programme.
“In light of this indefinite suspension, it is now unlikely that the programme will meet its original objective, which was to prevent Covid-19 related economic backsliding of the most vulnerable Ugandans,” the embassy said in a statement.
“Therefore, we are obligated contractually to terminate the program permanently.”
However, The programme was to benefit 120,000 Ugandans who lost livelihoods because of the coronavirus pandemic.
Each beneficiary was to receive 100,000 Ugandan shillings ($26; £20) every month for three consecutive months.
The US embassy regretted bitterly that those identified to benefit from the programme will not be able to receive the cash transfers.
So far, Uganda has confirmed over 12,700 coronavirus cases with 112 deaths.