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Full Breakdown

Uganda Parliament Passes Revised Sovereignty Bill Amid Controversy

5/7/2026, 1:48:53 AM

Passage of the Bill

On 6 May 2026 Uganda’s 11th Parliament approved the “Protection of Sovereignty Bill, 2026” after a series of amendments. The law criminalises “agents of foreigners” who influence policy or elections, imposing up to ten years’ imprisonment, and now awaits President Yoweri Museveni’s signature.

Background & Context

The government says foreign donors fund opposition and promote agendas such as LGBTQ rights. A prior anti-homosexuality law had already strained World Bank ties. The original draft required registration of any foreign funding and let the minister label individuals “foreigners.” After criticism from the World Bank and the central bank, the text was narrowed to target political influence only.

Key Figures

President Yoweri Museveni (final decision); Speaker Anita Among; State Minister David Muhoozi (tabled bill); Central Bank Governor Michael Atingi-Ego (economic warning); Opposition MPs Joel Ssenyonyi, Gilbert Olanya, Jonathan Odur, Betty Nambooze; Minister Godfrey Kabbyanga (defended law).

Timeline

15 Apr 2026 – Bill first tabled.

5 May 2026 – Second and third readings; central bank warning.

Data & Statistics

2023 remittances ? US$1.5 bn; 2025 inflows ? US$2.5 bn. Foreign investors hold ? US$3 bn in Ugandan government securities (? 12 % of issuances). The committee received 224 submissions from 60 groups, 700 memoranda, with only 57 reviewed. Penalties fell from 20 years to a maximum of 10 years.

Why It Matters

The law targets opposition parties, NGOs and fintech firms handling diaspora remittances. Economists warn capital controls could cause a 15-20 % shilling depreciation and higher borrowing costs. Civil-society groups fear criminalising legitimate advocacy and shrinking civic space.

Official Statements & Responses

The government says the bill safeguards against “undue external interference” and exempts foreign investment, diaspora remittances, trade and aid. Bank of Uganda warned the wording would “run down foreign-exchange reserves” and cause an “economic disaster,” while World Bank cautioned the language could expose its development work to criminal liability.

Criticism & Opposition

Human Rights Watch called the law a mimic of Russian foreign-agent statutes that could silence dissent. Opposition MPs say amendments still allow punitive sanctions and that procedural shortcuts limited minority debate. A diaspora survey found 77 % opposed the draft, fearing threats to remittance flows.

Conflicting Reports & Gaps

The committee says the final text protects legitimate financial flows, but some legislators argue the language remains vague enough for discretionary enforcement. President Museveni’s stance appears ambiguous, with reports of him distancing from certain provisions.

Verbatim Quotes

  • “A country without reserves is not sovereign,” — Michael Atingi-Ego, Governor, Bank of Uganda
  • “It is a historic bill,” — Anita Among, Speaker of Parliament
  • “The bill creates punitive sanctions regime, and has potential to hurt the economy,” — Gilbert Olanya, Opposition MP
  • “This has been a monumental achievement,” — Wilson Kajwengye, MP

What’s Next

The bill now proceeds to presidential assent; legal scholars anticipate constitutional challenges. Bank of Uganda will monitor exchange-rate trends, while opposition parties plan protests and possible judicial review if the law is signed.