Museveni Signs Uganda’s “Protection of Sovereignty” Law, Drawing Rights and Economic Warnings
Ugandan President Yoweri Museveni signed into law the “Protection of Sovereignty” bill on Sunday, making it a criminal offence to promote the interests of a foreigner against the interests of Uganda and banning anyone working on behalf of foreign interests from developing or implementing policy without government approval. The signing came just five days after Museveni’s May 12 inauguration, making the act the first legislation assented to during his seventh constitutional term in office. CNBC AfricaallAfrica.com
Uganda’s 11th Parliament, chaired by outgoing Speaker Anita Among, passed the bill on May 5 after hours of debate among legislators, adopting amendments that significantly narrowed its scope and removed several contentious provisions. New Vision
What the Law Does
Penalties for violations include up to 10 years in prison and steep cash fines. The law requires foreign agents to register with the state and report funding sources. The Department responsible for peace and security within the Ministry of Internal Affairs is designated as the implementing authority. CNBC AfricaNew Vision
One earlier provision that required any Ugandan receiving money from abroad to register as a foreign agent and disclose incoming funds was amended in the final version to apply only to people receiving funds for political purposes that advance foreign interests. That change was made in direct response to financial sector warnings. CNBC Africa
Rights groups have said that such broad language would allow the government to criminalise just about any form of political opposition. The government has accused critics of exaggerating the bill’s impact. CNBC Africa
Economic Warnings From the Central Bank and World Bank
Central Bank Governor Michael Atingi-Ego warned that the law could diminish financial flows into Uganda and risked running down foreign exchange reserves, in a situation he called an “economic disaster for our country.” MarketScreener
The World Bank also criticised the earlier proposal, saying it could expose to criminal liability a broad range of “routine development activities.” Neither the Central Bank nor the World Bank had commented on the final amendments by the time the law was signed. U.S. News & World Report
Remittances from Ugandans living abroad are an important source of foreign exchange for the East African nation. The narrowing of the foreign agent registration clause was widely seen as a direct concession aimed at protecting those flows. CNBC Africa
Opposition and Civil Society
Several members of the opposition demanded the bill’s withdrawal without success. The opposition submitted five minority reports warning that the bill’s flaws go beyond drafting issues and could fundamentally threaten civil liberties. New Vision
Ahead of the final vote, Attorney General Kiryowa Kiwanuka told parliament that the legislation had been substantially revised and that issues which previously caused trouble had been substantially amended. During committee proceedings, Kiwanuka introduced 18 amendments to address public concerns, telling the House that the bill now focuses on non-citizens and those acting on behalf of foreign political interests. New Vision
Museveni’s Position
Museveni, 81 and in power since 1986, has over the years regularly decried outside influence in Uganda, accusing domestic political rivals of receiving funding from abroad. MarketScreener
State House said the new law is designed to strengthen Uganda’s ability to safeguard its national interests and political independence amid growing regional and global geopolitical pressures. allAfrica.com
By assenting to the legislation within days of beginning a fresh term, Museveni signalled that questions of sovereignty, security oversight, and state control over foreign-linked operations will remain central priorities during his new term. allAfrica.com
Regional and Global Impact
The signing comes at a time when several African governments are increasingly debating foreign influence, international funding mechanisms, and the role of external actors in domestic political and civic processes. allAfrica.com
For international NGOs, lenders, and foreign-funded organisations operating in Uganda, the law introduces immediate compliance demands. Foreign-funded NGOs and entities receiving foreign grants must register with the designated authority, report periodically on funding sources and activities, and refrain from prohibited advocacy work. Transactions structured around foreign funding — including loan agreements, escrow arrangements, and grant-funded projects — now face new scrutiny and potential legal exposure. Global Law ExpertsGlobal Law Experts
Background
Museveni has been in power since 1986 and has repeatedly accused political rivals of receiving foreign funding to destabilise his government. The bill was promoted by Uganda’s Ministry of Internal Affairs and gazetted on April 13, 2026, before parliament passed it on May 5. The legislation provides for the registration and regulation of agents of foreign entities, and regulates funding and other forms of assistance to such agents. The original draft was significantly broader, prompting the Central Bank and World Bank to issue public objections before parliament approved a substantially revised version. Museveni described the new term that opened on May 12 as one focused on stricter accountability and intensified government action. MarketScreener + 3
What Happens Next
Relevant state institutions are set to begin immediate implementation, reinforcing constitutional principles of stability and self-determination, according to the Presidential Press Unit. The Department responsible for peace and security in the Ministry of Internal Affairs will serve as the lead implementing authority, overseeing the registration of foreign agents and regulating associated funding. Neither the Central Bank nor the World Bank had commented on the final amended version of the law as of Monday morning. Foreign-funded entities operating in Uganda now face an immediate need to assess whether their activities require registration under the new framework. No commencement date for full enforcement had been formally announced by the time of publication. Ugandaonline + 2
