NGO Funding Bill Petitioned by Martin Luther Nyanzi Sparks Concerns Over Sector Impact

Kampala, Uganda — March 2026

The NGO Funding Bill, petitioned to Parliament by Martin Luther Nyanzi, has triggered widespread concern among civil society organisations (CSOs) over its potential effects on Uganda’s non-governmental sector. CSOs warn that the proposed regulations could undermine NGO operations, limit civic engagement, and reduce access to essential services.

Impact on Civic Space and NGO Independence

Civil society leaders caution that stringent oversight of foreign funding, combined with proposals for government-controlled financial mechanisms, may restrict the autonomy of NGOs. Organisations working on human rights, governance, and accountability are particularly at risk, as CSOs fear these provisions could curtail independent advocacy and critical reporting.

Disruption of Service Delivery

Many NGOs provide essential services in healthcare, education, legal aid, and community development, especially in underserved communities. Stakeholders report that increased bureaucratic requirements and potential delays in funding approvals could stall projects, reduce outreach, and negatively affect vulnerable populations who rely on these services.

Economic and Employment Effects

The NGO sector is a significant source of employment and contributes to local economies through community programs. Civil society representatives warn that tighter funding controls could lead to staff layoffs, closure of programmes, and financial strain on organisations, potentially impacting thousands of employees and service beneficiaries.

Trust Deficit and Sector Morale

Past experiences of funding suspensions and regulatory pressures have created a climate of mistrust between NGOs and regulatory bodies. Civil society groups argue that the bill, if enacted without revisions, could exacerbate this trust deficit and demoralise organisations already operating under challenging conditions.

Call for Revisions

CSOs are urging Parliament to carefully review the bill’s provisions to protect the independence and operational effectiveness of NGOs, while balancing transparency and accountability. Stakeholders emphasise that the sustainability of development and humanitarian programs depends on a regulatory environment that supports, rather than restricts, civil society engagement.