The Protection of Sovereignty Act, 2026: What It Is, What Passed, and What You Must Do Now

1. Background to the Act

The Protection of Sovereignty Act, 2026 is a piece of Ugandan legislation that creates a new regulatory framework for persons who act on behalf of foreign governments, organisations, and individuals in Uganda. Sponsored by the Minister of Internal Affairs, the law was framed by its proponents as giving effect to Article 1(1) of the Constitution, which provides that all power belongs to the people of Uganda.

The Bill was first circulated in draft in March 2026 and gazetted on 13 April 2026 as Bill No. 13. It completed First Reading on 15 April 2026 and was committed to a Joint Committee on Defence and Internal Affairs and Legal and Parliamentary Affairs. During the Committee Stage, 224 stakeholders across 60 groups were heard, and the Joint Committee adopted a series of material amendments. The Act passed at Second and Third Reading on 5 May 2026 and now awaits Presidential Assent under Article 91 of the Constitution.

The Act targets what it calls "agents of foreigners" — any person who acts on behalf of a foreign principal and engages in regulated activities such as influencing political processes, representing foreign interests before government, recruiting others to promote foreign interests, and influencing or implementing government policy without Cabinet approval. Agents must register with the Government, declare foreign funding above a specified threshold to the Minister of Internal Affairs, and file periodic returns.

2. What Passed: Key Changes from the Original Bill

Despite these improvements, four provisions survived the amendment process and continue to raise constitutional and operational concerns.

3. Who Is Affected and How

The Act applies to any person who qualifies as an "agent of a foreigner" and engages in one or more of the regulated activities listed in clause 2(2). The definition is now activity-based rather than identity-based, which is an improvement on the original Bill.

International NGOs and Development Organisations. INGOs operating through Ugandan implementing partners, local staff, or sub-grantees will need to assess whether those partners qualify as agents under the Act. The safe harbour in clauses 2(4) and 2(5) covers humanitarian assistance, technical assistance, grants, and development assistance. However, INGOs whose programmes touch on governance, policy advocacy, or civic education must assess their exposure carefully.

Development Agencies and Multilateral Programmes. Clause 2(4)(a) exempts supervised institutions and entities regulated under an Act of Parliament from the funding restrictions. The exemption applies to the Ugandan recipient, not to the foreign principal. The Cabinet approval requirement in clause 2(2)(f) for influencing or implementing government policy is a separate risk that the funding exemptions do not address.

Foreign Investors. Foreign direct investment, portfolio investment, commercial loans, and trade finance are all explicitly protected by clause 2(5). However, foreign investors whose activities extend into policy engagement, regulatory advocacy, or funding of activities that could be characterised as influencing government policy, should review whether those ancillary activities bring them within scope.

4. Core Compliance Obligations

Obligation 1: Registration. Every person who qualifies as an agent of a foreigner must register with the Government. Registration timelines under clauses 16 to 19 impose 14-day windows at each stage.

Obligation 2: Declaration of Foreign Funding. Agents of foreigners who receive funds from a foreigner above UGX 400 million (approximately USD 108,000) must declare those funds to the Minister. Supervised financial institutions are prohibited from paying out funds without proof of declaration. Failure to declare carries a fine of up to 100,000 currency points for a legal entity or up to 50,000 currency points and 10 years imprisonment for an individual.

Obligation 3: Submission of Returns. Agents must file periodic returns with the Minister. The form and frequency will be prescribed by regulations. Failure to file is a separate criminal offence with the same penalty scale.

Clause 28 now requires any authorised person to obtain a court order before inspecting the premises of an agent — a material procedural protection that did not exist in the original Bill.

5. What Remains Unresolved

Four provisions survived the amendment process without adequate resolution and represent the residual constitutional and operational risk:

1. The Presidential Assent window closes on or before 4 June 2026 and is the final institutional opportunity for engagement.
2. Sub-clause (f) of "political activities" captures activities imposing or normalising ideologies inconsistent with the customs of communities in the Third Schedule — there is no standard for measuring conflict with "customs or norms."
3. The Cabinet approval requirement in clause 2(2)(f) affects any organisation engaged in policy development, technical assistance to government ministries, or programme implementation that touches on government service delivery.
4. No transitional provisions. There is no grace period for existing agents to register, no grandfather clause for existing funding arrangements, and no lead time between commencement and the activation of criminal liability.

6. The Six-Point Checklist: What to Do Now

1. Map your exposure. Identify which programmes, partners, and funding streams may bring your organisation within scope.
2. Assess your safe harbours. Confirm in writing whether your activities fall under the humanitarian, development, technical assistance, grants, or FDI safe harbours.
3. Implement a declaration system. Establish internal systems to track foreign funding received and ensure declarations are made before disbursement.
4. Register before commencement. There are no transitional provisions. Begin the registration process immediately.
5. Engage your board and international principals. Donors, development agencies, and foreign investors need to understand that their Ugandan implementing partners are now subject to registration and declaration obligations.
6. Take legal advice on the four unresolved provisions. A client-specific assessment is recommended before the Act commences.