A proposed law aimed at tightening control over foreign influence in Uganda is drawing growing concern from opposition leaders, civil society, and business stakeholders, who warn it could restrict dissent and disrupt key economic flows.
The Protection of Sovereignty Bill, 2026, currently under parliamentary review, was introduced by State Minister for Internal Affairs David Muhoozi. The government says the measure is intended to safeguard national interests, but critics argue its provisions could have far-reaching consequences.
Sweeping provisions
At the centre of the debate is a requirement that individuals or organisations acting as “agents” of foreign entities—including Ugandans in the diaspora—must register with authorities.
The Bill also proposes that any foreign funding exceeding approximately $106,000 (about Shs400 million) must receive ministerial approval before it can be accessed. Financial institutions that process unapproved transactions risk heavy penalties.
In addition, the legislation introduces harsh sanctions for activities deemed to undermine national sovereignty, including potential prison sentences of up to 20 years. Critics say these provisions could extend to protests, advocacy campaigns, or even critical publications.
Opposition, civil society push back
Opposition figures, including Joel Ssenyonyi of the National Unity Platform, have warned that the Bill could be used to target dissenting voices.
They argue that the broad and undefined language around “foreign agents” and “disruptive activities” gives authorities excessive discretion, potentially affecting political actors, non-governmental organisations, and media houses.
Legal and governance advocates have also urged wider public participation before the Bill progresses further.
Sarah Bireete called on stakeholders to submit their views ahead of the deadline. “Ugandans in general—especially tour operators, coffee exporters, Ugandans in diaspora, members of the creative industry, the banking sector… submit your views before this law takes you out of business,” she said in a public appeal.
Economic concerns mount
Beyond political implications, economists and business leaders are raising red flags about the potential economic impact of the Bill.
Uganda receives an estimated $2.5 billion annually in diaspora remittances, which support millions of households. Analysts warn that stricter controls and regulatory uncertainty could discourage these inflows.
Banks and financial institutions may also face increased compliance burdens, while sectors such as tourism, exports, and international consultancy could be affected by new restrictions on cross-border transactions.
Industry players fear the law could complicate business operations, particularly for firms that rely on international partnerships or foreign financing.
Government defends intent
Government officials maintain that the Bill is necessary to prevent external interference and ensure transparency in foreign-funded activities.
Supporters argue that similar regulations exist in other jurisdictions and are essential for protecting national sovereignty, particularly in an increasingly globalised political environment.
They insist the law is not intended to stifle legitimate activity but to regulate and monitor foreign influence more effectively.
Concerns over freedoms
Human rights observers, however, warn that the Bill could undermine constitutional freedoms, including freedom of expression, association, and assembly.
They caution that provisions allowing severe penalties for loosely defined offences could have a chilling effect on public discourse and civic engagement.
Public input and next steps
Parliamentary committees are currently reviewing the Bill, with public submissions expected before April 24. Lawmakers are expected to consider stakeholder input before proceeding to further debate and possible amendments.
As scrutiny intensifies, the proposed law has become one of the most closely watched legislative developments in Uganda, highlighting tensions between national security priorities and the protection of democratic space.
For many observers, the outcome of this debate could have lasting implications not only for governance, but also for Uganda’s economic openness and global engagement.
