Buganda Kingdom weighs in on controversial Sovereignty Bill

• Buganda Kingdom says the Protection of Sovereignty Bill, 2026 could hurt investment and diaspora contributions.

• The Kingdom says public disclosure of foreign funding may violate privacy rights and discourage support from Baganda abroad.

• It also warns that new banking rules could delay donor funds and project remittances.

• Buganda has asked the Attorney General and Parliament to review and refine the Bill before passing it.

Buganda Kingdom has raised strong concerns over Uganda’s proposed Protection of Sovereignty Bill, 2026, warning that it could scare away investors, reduce diaspora support and weaken cultural institutions.

In a formal submission signed by Buganda Attorney General Christopher Bwanika, the Kingdom asked the Attorney General and Parliament to review the draft law before it is passed.

The Bill seeks to regulate foreign funding and cross-border financial flows. It requires people and institutions receiving money from foreigners to declare it to the minister. Some of this information would also be made available to the public after payment of a fee.

Buganda says this could affect privacy and discourage many Baganda in the diaspora from supporting Kingdom programmes.

“The public disclosure regime, under this Bill seems to conflict with the right to privacy under Article 27 of the Constitution of Uganda, and the Data Protection and Privacy Act, 2019,” Bwanika said.

He explained that many Baganda abroad contribute to Kingdom programmes because of cultural trust and family ties, not for business or political reasons.

“The public disclosure is likely to deter diaspora Baganda from contributing to Kingdom programmes, something that is likely to pose a threat to the Kingdom’s financial independence,” he added.

The Kingdom also objected to Clause 25 of the Bill, which places new obligations on banks and money transfer operators handling cross-border transfers to what the Bill calls “agents of foreigners.”

Under the proposal, banks would need proof of the source of funds and ministerial approval before releasing money. Buganda says this could delay donor funds, project support and diaspora remittances.

The Kingdom asked that traditional institutions be excluded from this reporting system.

It also warned that the law could affect Uganda’s image as an investment destination.

Bwanika said Uganda has long attracted investors because of lighter regulation and easier movement of capital. Capital means money invested in business, projects or development.

“This Bill now seeks to over regulate foreign remittances and appears to be a policy reversal, and will definitely scare away many potential investors,” he said.

He warned that investors could move their money to other East African Community countries with fewer restrictions, causing capital flight. Capital flight happens when investors withdraw money from one country and move it elsewhere because of fear or uncertainty.

“The Law will not protect the sovereignty and interests of Uganda, but on the contrary doom our economy and increase the cost of doing business in Uganda,” Bwanika said.

Buganda also said the Bill may interfere with cultural institutions that support government services in education, health, agriculture, traditional justice and community self-help projects such as Bulungi Bwansi.

Bulungi Bwansi refers to community voluntary work where people come together to improve their area through cleaning, road repairs and other local projects.

In conclusion, the Kingdom asked the Attorney General to allow more time for consultation and refinement of the law.

“We believe that the spirit of this intended law is to ‘promote the interests of Uganda’ and the sovereignty of the country, which in our view can’t be served by the draft law in its current state,” Bwanika said.

The statement was copied to the Katikkiro, Buganda cabinet ministers, the Minister for Justice and Constitutional Affairs, and the Speaker of Parliament.