Kampala, Uganda: The Uganda Law Society (ULS) has demanded the immediate withdrawal of the Certificate of Financial Implications for the controversial Protection of Sovereignty Bill, 2026, escalating legal pressure on government over what it describes as fundamental non-compliance with public finance laws.
In a letter dated April 29, 2026, addressed to State Minister for Finance Amos Lugoloobi, the legal body argued that the certificate issued on April 15 fails to meet the requirements of the Public Finance Management Act (PFMA) and should be rendered invalid.
According to ULS Vice President Asiimwe Anthony, the certificate lacks the “comprehensive, balanced, and evidence-based analysis” required before Parliament can proceed with consideration of the Bill.
Asiimwe contends that the financial assessment presented to Parliament is incomplete, arguing that it aggregates projected costs, estimated at over Shs29 billion, without clear breakdowns, methodology, or distinction between capital and recurrent expenditure.
He further challenged government’s position that the Bill would not generate revenue, noting that the legislation introduces multiple income streams including registration fees, fines, and penalties running into billions of shillings. By omitting these, the certificate is said to present only one side of the fiscal picture.
“The analysis fails to give Parliament a balanced view of both costs and potential revenues,” the letter argues in substance.
BoU warning reinforces economic concerns
The Law Society also faulted the certificate for ignoring a recent technical assessment from the Bank of Uganda, which warned that the Bill could destabilise Uganda’s economy.
According to the ULS, the central bank’s submission highlighted risks including reduced foreign direct investment, capital flight, exchange rate volatility, and disruptions to diaspora remittances.
The Bill’s provisions, particularly those defining “foreign agents” and imposing approval mechanisms—are said to risk discouraging investment and fragmenting financial flows.
The legal body further raises concern that the certificate failed to assess potential impacts on key sectors such as NGOs, fintech, and international aid, where job losses and funding disruptions could be significant.
Citing these gaps, the Uganda Law Society has called on Parliament to suspend further consideration of the Bill until a compliant financial certificate is issued.
The lawyers argue that without a lawful and complete assessment, the process violates Section 74 of the PFMA, which requires government to fully account for a Bill’s economic and fiscal implications before debate.
ULS maintains that the current certificate is “methodologically flawed” and legally insufficient, urging government to produce a revised version that clearly quantifies costs, revenue streams, and broader economic risks.
Background: A Bill under intensifying scrutiny
The Protection of Sovereignty Bill, 2026, has sparked intense national debate in recent weeks, with supporters arguing it is necessary to shield Uganda from foreign interference, particularly through funding of civil society and advocacy groups.
However, critics, including economists, civil society actors, and now legal experts, warn that the Bill could restrict financial flows, weaken investor confidence, and shrink civic space.
Earlier this week, Bank of Uganda Governor Dr Michael Atingi-Ego cautioned Parliament that limiting foreign inflows could weaken the shilling, reduce reserves, and undermine economic stability, arguing that “a country without reserves is not sovereign.”
Diaspora representatives have also raised concerns over provisions that could affect remittances, which contribute significantly to Uganda’s economy.
Rising Stakes Ahead of Parliamentary Decision
The Law Society’s intervention adds a new legal dimension to the ongoing debate, potentially complicating the legislative path of the Bill.
With Parliament yet to conclude scrutiny, the demand to halt proceedings places pressure on both the Executive and lawmakers to address concerns around legality, economic impact, and transparency.
The coming days are expected to determine whether the Bill proceeds in its current form or undergoes significant revision amid mounting resistance.
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