On Friday last week, the ruling National Resistance Movement (NRM) parliamentary caucus formally backed a controversial new law that seeks to tighten control over foreign funding and influence in Uganda.
The decision was taken at a high level meeting at State House Entebbe chaired by President Yoweri Kaguta Museveni, who is also the party Chairperson, where legislators resolved to support the proposed Protection of Sovereignty Bill once it is tabled in Parliament.
Hamson Obua, the Government Chief Whip in Parliament, said after the meeting, that the bill is intended to safeguard Uganda’s independence, arguing that foreign funding must not undermine national interests or political stability.
At its core, the proposed legislation seeks to regulate how foreign individuals, governments and organisations operate within Uganda, especially in politics, governance and civic space.
It introduces the concept of an “agent of a foreigner”, broadly defined to include anyone acting on behalf of or receiving direction or funding from foreign entities.
Such individuals or organisations would be required to register with the government before carrying out activities in Uganda. Failure to do so would be a criminal offence, carrying heavy fines or imprisonment.
The bill also goes further by placing restrictions on what these agents can do. It bars them from influencing government policy, participating in political activities, or promoting foreign interests that are seen to conflict with Uganda’s national priorities.
One of the most important aspects of the proposed law is its direct impact on non government organisations and civil society groups, many of which rely heavily on foreign funding.
Under the bill, any person or organisation receiving foreign funds would be required to declare the source, amount and purpose of that funding. In some cases, prior approval from the Minister would be needed before receiving funds above a specified threshold.
The law could also require detailed disclosure of foreign funding within strict timelines and give authorities powers to limit or block funding considered harmful to national sovereignty.
This builds on existing laws such as the NGO Act, which already regulates registration and operations of NGOs in Uganda, but expands state oversight, particularly on financial flows.
A government official familiar with the discussions defended the move, saying foreign financing has increasingly been used to shape internal processes.
“During the last electoral cycle, there were clear attempts by externally funded actors to influence narratives and mobilization. Some of these activities nearly destabilised key processes. This law is about closing those gaps and protecting national stability,” the official said.
Promoting foreign interests against Uganda’s interests, interfering in elections, or engaging in what is termed economic sabotage could attract fines running into billions of shillings or prison sentences of up to twenty years.
Another senior official said the bill is not aimed at shutting down organisations but ensuring accountability across sectors.
“We are not saying NGOs or political actors cannot receive funding. What we are saying is that such funding must be transparent, regulated and aligned with national interests. No country allows unchecked foreign money to shape its internal affairs,” the official noted.
Penalties and offences
The proposed law introduces severe penalties for a wide range of offences. Promoting foreign interests against Uganda’s interests, interfering in elections, or engaging in what is termed economic sabotage could attract fines running into billions of shillings or prison sentences of up to twenty years.
It also criminalises activities such as organising meetings or campaigns funded by foreign entities if they are deemed to influence political processes or government operations.
Critically, the definition of disruptive activities is broad, covering protests, demonstrations and actions that may interfere with public order or business operations.
Obua argues that the law is anchored in Uganda’s Constitution, particularly the principle that power belongs to the people.
He says it is designed to prevent external actors from shaping Uganda’s political direction or destabilising institutions.
He further pointed to international precedents, noting that some countries have similar laws regulating foreign agents.
During the NRM caucus meeting, the law makers were convinced that, the bill is a necessary step to secure Uganda’s sovereignty and financial independence in an era of increasing global influence and geopolitical competition.
The bill comes at a time of heightened political sensitivity in Uganda, following recent elections and ongoing debates over governance, civic space and the role of external actors.
In recent years, tensions have grown between the government and some civil society organisations, particularly those involved in governance, elections and human rights work.
There have also been moves to suspend or restrict certain NGOs on grounds of national security. An independent political analyst said the bill reflects a broader global trend but warned of the need for balance.
“Many governments are becoming more cautious about foreign influence, especially in politics. The key issue will be how Uganda implements this law. If applied narrowly and fairly, it could strengthen oversight. If applied broadly, it risks affecting legitimate civic work,” the analyst said.
Civil society actors, however, have expressed concern about the potential impact of the law.
“This bill, in its current form, could severely restrict the ability of NGOs to operate, especially those working on governance and accountability. It creates wide powers that could easily be misused to silence dissent and limit independent voices,” a representative of a civil society organisation said.
With the National Resistance Movement caucus already backing the proposal, the bill is expected to move to Parliament where it is likely to receive strong support given the party’s majority.
A source said the bill could even get to Parliament this week and passed by Friday due to the urgency with which Government is acting.
If passed into law, it would mark one of the most far reaching expansions of state oversight over foreign funding and political activity in Uganda in recent years, with major implications for NGOs, political actors and international partners operating in the country.