The health laboratory services are grossly under-funded. There is no dedicated budget line for laboratory services at the national or district levels and this affects laboratory performance. National health laboratory services are hugely funded by development partners through grants to institutions and implementing partners. This has led to vertical funding based on priority diseases in the partnerships and sustainability is a threat. Funding through the government is insufficient and usually generalized to all medical reagents and supplies, a practice that leaves laboratory priorities marginalized. Therefore, there is a need to establish a dedicated budget line by government, and to coordinate laboratory financing from all sources.