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A joint parliamentary committee has proposed major amendments to the controversial Protection of Sovereignty Bill, 2026, warning that its original draft could unintentionally criminalize legitimate economic activities and disrupt Uganda’s financial stability. The Committee on Defence and Internal Affairs, together with the Committee on Legal and Parliamentary Affairs, presented their report on Monday following consultations with more than 224 stakeholders clustered into 60 groups.
The report attempts to balance national security concerns with constitutional freedoms and economic stability, following mounting criticism from civil society, financial institutions, legal experts, religious leaders, and sections of Parliament. According to the committee, stakeholders identified major inconsistencies between the government’s policy intentions and the actual drafting of the Bill.
Institutions, including the Bank of Uganda and the Uganda Law Society, reportedly raised concerns that the Bill would create a parallel regulatory system and grant excessive discretionary powers to the Minister of Internal Affairs. In response, the committee recommended several amendments aimed at narrowing the scope of the proposed law and shielding legitimate activities from unnecessary restrictions.
Among the proposed changes is the exemption of already regulated sectors such as commercial banks supervised by the Bank of Uganda and universities governed by University Councils in order to avoid duplication of oversight. The committee also proposed narrowing the definition of a “foreigner” to apply specifically to non-citizens and foreign-registered companies after concerns that the original wording could affect Ugandans living abroad.
The report further recommends protecting remittances, trade financing, and legitimate foreign direct investment from restrictive approval processes that critics warned could harm the economy. The committee additionally proposed reducing the maximum penalties under the law from 20 years imprisonment to 10 years, arguing that punishments in the original draft were disproportionate.
Another proposed amendment seeks to replace the requirement for ministerial “approval” with a system based on “disclosure” in a move intended to reduce the concentration of power in the hands of the Minister of Internal Affairs. The committee also recommended reducing fines from 200 currency points to 100 currency points. The Bill was formally received by the Office of the Clerk to Parliament on May 4, 2026. The joint committee has recommended that Parliament proceed with the Second Reading of the Bill, provided the House adopts the proposed amendments meant to safeguard constitutional rights and economic stability.
According to the report, the Bill seeks to operationalize the protection of Uganda’s sovereignty by addressing what the government describes as gaps in the current legal framework concerning external interference in national affairs. Supporters of the legislation argue that the country requires a law to regulate “agents of foreigners” who may use foreign funding to influence government policy, spread misinformation, or incite instability.
The report was signed by 28 out of the 56 members of the joint committee, including chairpersons Wilson Kajwengye and Stephen Baka Mugabi, as well as deputy chairpersons Linos Ngompek and John Teira. However, a significant number of opposition legislators declined to sign the report alongside a few members from the ruling National Resistance Movement.
One of the most contentious issues surrounding the Bill remains its broad definition of a “foreigner,” which critics argued initially extended to Ugandans in the diaspora and risked affecting families receiving remittances. Stakeholders also objected to what they described as the creation of a “parallel regulatory regime” that could over-regulate sectors already governed by existing laws and institutions, including banking, higher education, and civil society organizations.
Additional concerns focused on the sweeping discretionary powers initially granted to the Minister of Internal Affairs and fears that the legislation could criminalize legitimate business operations, foreign investment, academic collaborations, and development partnerships. The committee noted that it also considered concerns raised by President Yoweri Museveni regarding the Bill.
According to the report, the President advised lawmakers to ensure the legislation strictly targets hostile foreign interference in domestic politics without disrupting lawful economic activities such as foreign direct investment and trade financing. The committee therefore refined the Bill to focus specifically on hostile interference while attempting to protect investment and economic growth. The proposed legislation is scheduled for Second and Third Readings during Parliament’s afternoon sitting today, according to the Order Paper circulated last week.
SOURCE: URN
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