CDF to BoU Governor: Be careful with your statements

• Gen Muhoozi Kainerugaba warns BoU Governor Atingi-Ego over his public comments.

• Atingi-Ego cautions that the sovereignty law could cause an “economic disaster”.

• World Bank raises concerns about impact on development activities.

• Parliament passes revised bill, now awaiting President Museveni’s assent.

The Chief of Defence Forces and Senior Presidential Advisor on Special Operations, Gen Muhoozi Kainerugaba, has cautioned Bank of Uganda Governor Michael Atingi-Ego following his recent comments on the sovereignty bill.

“My friend the Governor of the Central Bank should be careful about his statements,” Gen Kainerugaba said while reacting to a Reuters report. The report cited Atingi-Ego’s concerns about the Protection of Sovereignty Bill, 2026, which Parliament passed on May 5, 2026.

Uganda’s Parliament approved the bill to limit foreign influence, after easing some earlier proposals on external funding. Atingi-Ego had warned that the law could reduce financial inflows and strain foreign exchange reserves, describing the risk as an “economic disaster for our country”.

The World Bank also raised concerns last month. It said the bill could expose many of its “routine development activities” to criminal liability, including meetings where policy ideas are discussed.

The bill now awaits assent by President Yoweri Museveni.

Government officials have often accused political opponents of receiving foreign funding to push outside interests. Some opposition groups in Uganda have historically relied on such support.

The law provides for penalties of up to 10 years in prison for violations. It bars individuals acting on behalf of foreign interests from shaping or implementing policy without government approval. It also criminalises promoting the “interests of a foreigner against the interests of Uganda”.

Lawmakers revised the final version to address concerns from economic stakeholders. A clause that required all recipients of foreign funds to register as foreign agents was narrowed. It now applies only to those receiving money for political purposes tied to foreign interests.

Remittances from Ugandans abroad remain a key source of foreign exchange for the country.