KAMPALA, Uganda (AP) — Uganda is moving to tighten government oversight of non-governmental organizations with a new bill that proponents say will promote accountability and reduce foreign influence, but which critics fear could stifle civil society.
The proposed NGO Funding Bill, 2026, currently under consideration by Parliament, seeks sweeping reforms to the regulation, taxation, and financing of NGOs operating within the East African nation. The bill aims to address concerns about excessive reliance on foreign funding and ensure that NGO activities align with national development priorities, particularly in areas with low literacy rates.
A key component of the legislation requires all NGOs to disclose the source, amount, and intended use of all foreign funding within fourteen days of receiving it. The Minister of Internal Affairs would also be granted the authority to set limits on the proportion of foreign funding an NGO can receive annually. Funding intended to influence political processes or undermine national sovereignty would be prohibited.
The bill also outlines plans to review and reduce registration fees and taxes on equipment used for educational, health, and community development purposes, potentially easing the burden on smaller organizations working in rural areas.
Supporters of the bill argue that increased transparency and accountability are crucial for ensuring that NGO funds are used effectively and that development efforts are aligned with Uganda’s national goals. They point to the need to strengthen national sovereignty and reduce dependence on external donors.
However, concerns are mounting among civil society groups who fear the proposed legislation could significantly restrict their operational space and independence. Critics argue that funding caps and expanded ministerial powers could hinder their ability to advocate for human rights, provide essential services, and hold the government accountable.
The bill also mandates monthly reporting to the NGO Bureau, detailing funds received, their sources, and detailed expenditure records. NGOs will also be required to demonstrate efforts toward local sustainability as part of their annual compliance review.
The debate over the NGO Funding Bill, 2026, reflects a broader trend in Uganda towards greater government control over civil society organizations. Similar legislation has been proposed in the past, raising concerns about the shrinking space for independent voices and the potential impact on democratic governance.
The proposed law is expected to generate significant debate within Parliament and among stakeholders in the coming months, as Uganda’s civil society landscape faces a potential period of significant change.
