The World Bank has suspended approval of public financing in Uganda over its enactment of the controversial Anti-Homosexuality Act.

In a statement on August 8, the Washington based lender stated that it will halt the financing to review measures that had been put in place to protect the sexual and gender minority from discrimination.

World Bank stated that Uganda had contradicted its moral values of eradicating poverty without discrimination.

"Uganda's Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality," the World Bank stated.

“This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world.”

This follows a decision by President Yoweri Museveni to sign the Anti-homosexuality bill into law in May this year.

World Bank further said that it deployed a team to Uganda to review its portfolio in the context of the new legislation immediately after the law was enacted.

According to the lender, the review determined that projects should be aligned with their social standards and cover their goal of protecting sexual and gender minorities from discrimination and exclusion in their funded projects.

“No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested,” the lender stated.