Government has tabled the Protection of Sovereignty Bill, 2026 before Parliament, proposing sweeping restrictions on foreign influence, including long prison sentences, heavy fines, and tighter controls on foreign funding.
The bill presented by State Minister for Internal Affairs David Muhoozi during a sitting chaired by Speaker Anita Annet Among if enacted proposes to require individuals and organisations acting on behalf of foreign entities to formally register with government authorities.
It also introduces strict thresholds for foreign funding, requiring ministerial approval for any individual or entity receiving more than Shs400 million annually from external sources.
The legislation further seeks to regulate foreign borrowing, mandating prior clearance for all international loans to Ugandan borrowers.
Under the bill, failure to comply could result in classification as a “foreign agent,” a designation that carries severe penalties, including up to 20 years in prison noting that individuals could also face fines of up to Shs2 billion, while organisations risk penalties of up to Shs4 billion.
The draft law also criminalises the promotion of foreign interests in Uganda’s electoral processes and introduces sanctions for actions deemed harmful to the national economy or disruptive to government operations.
Authorities would be granted expanded enforcement powers, including the ability to seize assets linked to violations.
However, the tabling of the bill was met with immediate concern from Members of Parliament, who raised procedural issues over the lack of physical copies. The Speaker directed MPs to access the document digitally via their devices, allowing proceedings to continue.
The proposal has since been referred to the Committee on Defence and Internal Affairs, as well as the Legal Committee, for further scrutiny and expected public consultations.
The development comes amid heightened tensions between the state and civil society organisations, following recent actions by the Financial Intelligence Authority, including the freezing of accounts and closure of several NGOs.
Similar legal frameworks exist in other jurisdictions. Countries such as Russia and China have enacted strict “foreign agent” laws regulating external influence, while India has tightened controls on foreign funding through its FCRA regime. In contrast, the United States operates a disclosure-based system under the Foreign Agents Registration Act (FARA), which is comparatively narrower in scope.
Observers say Uganda’s proposed law could significantly reshape the operating environment for civil society, foreign-funded organisations, and international investors, with debate expected to intensify as the bill progresses through Parliament.
