World Bank Warns Uganda’s Foreign-Funding Bill Could Undermine Development Work

On 15 April 2026 Uganda’s parliament introduced a bill that obliges any individual or organisation receiving foreign money to register as a foreign agent, disclose all incoming funds, and prohibits foreign agents from “hinder[ing], frustrat[ing] or disrupt[ing] the implementation of a government policy.” The legislation also criminalises the development or promotion of alternative public policies without government approval. Penalties include fines of up to 4 billion Ugandan shillings (?US $1.08 million) and imprisonment for up to 20 years.

World Bank Flags Concerns Over Uganda’s Foreign Funding Bill

The proposal follows a period of tension between Uganda and international donors. The World Bank halted new lending in 2023 after Uganda enacted a harsh anti-homosexuality law, resuming funding only after limited concessions. The bank now manages a project portfolio of roughly US $4.57 billion in Uganda, making it a major source of development financing.

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President Yoweri Museveni, in power since 1986, introduced the bill. Information Minister Chris Baryomunsi publicly rejected the World Bank’s concerns. The World Bank, through its Uganda office, issued a letter to parliament on 23 April outlining the potential impact on its operations. Ugandan civil-society groups and policy analysts have expressed unease about the bill’s breadth, though specific organisations are not named in the sources.

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The bill’s reporting requirements would apply to all entities receiving foreign assistance, potentially affecting the US $4.57 billion in World Bank-funded projects. The maximum fine of 4 billion shillings translates to about US $1.08 million, while the maximum custodial sentence is 20 years, reflecting the law’s punitive approach.

World Bank Flags Concerns Over Uganda’s Foreign Funding Bill

In its 23 April letter, the World Bank warned that the legislation could expose its routine development activities to criminal liability, including meetings where alternative policy ideas are discussed. The bank argued that the law’s registration and reporting obligations would impede its ability to implement projects. Information Minister Baryomunsi characterised the bank’s concerns as unwarranted, asserting that funds from agencies such as the World Bank remain protected under the new framework.

World Bank Flags Concerns Over Uganda’s Foreign Funding Bill

Critics argue that the bill’s broad definition of “foreign agent” could criminalise legitimate civil-society work and restrict policy debate. Observers note that the prohibition on “hinder, frustrate or disrupt” government policy may be used to suppress dissent. Human-rights groups, while not named in the source material, have historically warned against similar legislation in the region.

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Both Reuters and Sharecafe reports convey identical details regarding the bill’s provisions, penalties, and the World Bank’s response, with no contradictory figures. However, the sources do not provide the positions of Ugandan parliamentary committees, nor do they identify specific civil-society organisations that may be affected.

World Bank Flags Concerns Over Uganda’s Foreign Funding Bill

• “By Elias Biryabarema KAMPALA, April 28 (Reuters) - The World Bank has told Uganda's government that proposed legislation to regulate people and organisations that receive foreign funding will hinder its work in the country, according to a letter seen by Reuters.” — World Bank, letter to Parliament

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• “hinder, frustrate or disrupt the implementation of a government policy” — Text of the proposed bill

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• “Information Minister Chris Baryomunsi dismissed the bank's concerns as unwarranted.” — Ugandan government statement

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The bill is pending further parliamentary debate; its passage would require compliance from all foreign-funded programmes, including those financed by the World Bank. The bank has indicated that continued funding may depend on amendments that safeguard its routine activities. International donors are monitoring the situation, and any enactment could influence future aid allocations to Uganda.

World Bank Flags Concerns Over Uganda’s Foreign Funding Bill