ICNL Highlights Uganda’s NGO Funding Bill Petition as Civil Society Space Faces Scrutiny

Source: International Center For Not-for-Profit Law

Kampala, Uganda — The International Center for Not-for-Profit Law (ICNL) has noted that a petition prompting what is widely referred to as the NGO Funding Bill, 2026 was submitted to Uganda’s Parliament by youth advocate Martin Luther Nyanzi, a 16-year-old secondary school student and media entrepreneur, sparking intense debate over the future of civil society and the regulatory framework governing non-governmental organizations (NGOs).

According to ICNL’s Civic Freedom Monitor, the petition — which urges lawmakers to consider legal changes that would enable greater government support and oversight of NGO financing — has become a focal point in broader discussions about civic space, funding sources, and NGO independence in Uganda.

A Youth-Driven Proposal with National Implications

In early March, Nyanzi officially submitted his petition to the Clerk of Parliament, calling for legislation that would allow formal government funding mechanisms for community-based organizations (CBOs) and local NGOs struggling with inconsistent or declining donor support.

Nyanzi framed the proposal as a way to reduce over-reliance on foreign funding pipelines, which many NGOs have cited as unstable following the suspension or reduction of support from major partners. He emphasized that his proposal does not seek to ban foreign funding or restrict lawful NGO activities, but rather aims to “support sustainability, accountability and local ownership.”

Civil Society Voices and Concerns

The proposal has prompted mixed reactions from civil society organizations and human rights activists. Critics warn that any framework placing government at the centre of NGO financing — without robust safeguards — could undermine political independence, delay project implementation and burden organisations with new administrative requirements.

Leading NGO advocates have also reiterated concerns that existing restrictions on civic activity — including suspensions of NGOs and the freezing of bank accounts on the basis of alleged non-compliance or national security risks — have already contributed to an environment in which civic space is constrained.

Regulatory Context and Parliamentary Review

Under Uganda’s current NGO Act (2016) and its 2024 amendment, NGOs are required to report sources of funding and comply with detailed registration and oversight procedures. This regulatory regime has been subject to debate in recent years, with government officials defending tighter oversight as necessary to ensure transparency and prevent undue foreign influence, while civil society stakeholders argue that overly restrictive measures could stifle essential service delivery and advocacy.

ICNL notes that at present no formal NGO Funding Act has yet been enacted; rather, Parliament is considering the petition and potential implications of the proposed legislation as part of its legislative agenda.

A Critical Moment for Civic Space

Observers say the debate over the proposed bill comes at a critical time for Uganda’s civil society — as legal oversight, public confidence, and access to resources remain key determinants of NGOs’ ability to function effectively. The outcome of the parliamentary review is expected to shape not only how NGOs are funded, but how they engage with communities, government, and international partners in the years ahead.