NGO Funding Bill (Uganda)

The NGO Funding Bill is a proposed legislative framework in Uganda initiated via a public petition to the Parliament of Uganda in February 2026. The proposed bill seeks to regulate the financing of non-governmental organizations (NGOs) and community-based organizations (CBOs) by introducing mandatory disclosure of foreign funds and promoting domestic resource mobilization. As of April 2026, the proposal is undergoing administrative review and has not yet been formally tabled as a government bill.

The proposal advocates shifting resources away from heavy reliance on foreign donors toward more structured domestic and government-backed mechanisms for sustainability, transparency, and accountability. As of April 2026, the matter remains at the petition and administrative review stage; no formal bill has been tabled for debate in Parliament, and it is expected to be considered by the incoming 12th Parliament following the 2026 general elections.

Background

NGOs in Uganda are primarily governed by the Non-Governmental Organisations Act, 2016 (as amended in 2024), which mandates registration with the Ministry of Internal Affairs (via the NGO Bureau), disclosure of funding sources, submission of annual audited financial statements, and demonstration of efforts toward financial self-sustainability. Foreign funding remains lawful but is subject to government oversight, with large or politically sensitive grants potentially requiring prior approval. Non-compliance has led to suspensions of several organizations, particularly those involved in human rights, governance, or election-related activities.

Public debate has highlighted perceived imbalances: many locally incorporated NGOs deliver essential community services and Contribute to the economy yet often face funding challenges, while organizations with substantial international support from donors such as the European Union and USAID receive larger resources. Proponents argue that excessive foreign dependency exposes NGOs to external agendas and aid volatility, especially during election periods. Government advisories in late 2024 urged caution regarding donor funds with conditionalities ahead of the 2026 polls.

Key provisions

Although the full draft text has not been publicly released in complete form, reported elements of the proposal include:

• Mandatory disclosure of all foreign funding (financial, material, or technical) to the NGO Bureau within 14 days of receipt, including source, amount, and purpose.
• Monthly financial reporting on income, sources, and expenditures.
• Ministerial powers to set limits on the proportion of foreign funding an NGO may receive.
• Restrictions on foreign funds intended to influence national political processes, electoral activities, or undermine national sovereignty.
• Possible thresholds (such as around Shs3 billion) requiring prior approval for large grants, with discussions of centralized oversight or channeling mechanisms.
• Incentives for local resource mobilization, including potential reductions in registration fees and tax relief for certain operations.

Legislative ProgresS

The proposal originated from a petition submitted to the Clerk of Parliament in February 2026. Parliament has accepted the petition for administrative review, but the bill has not yet been formally tabled.

Supporter perspectives

Supporters argue that the bill would reduce external influence, better align NGO activities with national development priorities (such as education, health, and social transformation), and promote long-term self-reliance and accountability. They highlight potential economic benefits, including incentives for domestic philanthropy and lower operational costs for smaller organizations.

Opposition and criticism

Civil society organizations, including the Centre for Constitutional Governance and the National NGO Forum, have strongly rejected the proposals. Critics argue that increased state oversight threatens constitutional freedoms of association and expression (Articles 29 and 38), risks shrinking civic space for human rights, anti-corruption, governance, and election-monitoring work, and could transform NGOs into extensions of the state. Activists have called for halting any Regulatory Impact Assessment and demanded inclusive stakeholder consultations, citing concerns over the timing around the 2026 elections and potential for politicization.

Relation to the Protection of National Sovereignty Bill

The NGO Funding Bill has frequently been compared to the separate Protection of National Sovereignty Bill (endorsed by the NRM Parliamentary Caucus). Analysts note that the Sovereignty Bill shares core elements, such as mandatory foreign funding disclosure within 14 days, expanded ministerial oversight, and restrictions on funds influencing political processes. Some describe it as a modified or broader version of earlier NGO funding measures, extending controls to politics, media, and institutions. Critics contend that the two proposals could have overlapping effects, further constraining civic space under the banner of sovereignty and accountability.

NGO regulation debates

Uganda's NGO regulatory framework has evolved since the Non-Governmental Organisations Registration Act of 1989 and its 2006 amendment, with the 2016 Act introducing stricter registration, reporting, and disclosure requirements. The proposed Funding Bill aims to address gaps in financial sustainability but has intensified debates over the balance between transparency/accountability and operational autonomy. Critics warn that excessive controls could hinder civil society's role in advocacy and service delivery, while supporters maintain that robust mechanisms are needed to prevent foreign influence from undermining national priorities.

See also

• Parliament of Uganda
• Non-governmental organization
• Non-Governmental Organisations Act, 2016
• 2026 Ugandan general election
• Protection of National Sovereignty Bill (Uganda)