Lawyer Kenneth Muhangi has raised concerns over Uganda’s proposed Sovereignty Bill, saying while the law is rooted in legitimate national interests, its broad framing could create unintended constitutional and economic consequences.
Muhangi said the push to regulate foreign influence reflects a “real concern” about external funding, digital platforms shaping public opinion, and foreign actors influencing domestic decision-making.
However, he cautioned that the Bill goes too far in defining who qualifies as a foreigner.
“The Bill defines a foreigner to include not just non-citizens, but also Ugandans living abroad, and even allows the Minister to declare any person or institution as foreign,” he noted, adding that this is where legal concerns begin.
He argued that Uganda’s Constitution already provides a clear definition of citizenship, including for Ugandans born abroad or those with ancestral ties.
According to him, citizenship cannot be overridden by administrative discretion, warning that such provisions risk creating a parallel legal identity system.
Muhangi further warned that the practical implications could be far-reaching.
He pointed out that Ugandans in the diaspora sending remittances home could be indirectly classified under foreign financial flows, while professionals working with international clients or donor-funded institutions could face heightened scrutiny.
“These include accountants, lawyers, researchers, consultants, and workers in climate finance who may suddenly find themselves operating under suspicion rather than normal commercial engagement,” he said.
He also highlighted concerns within the financial sector, noting that Clauses 25 and 26 introduce strict reporting and authorisation requirements for transactions linked to “foreigners.”
Financial institutions would be required to verify payments, obtain declarations, and submit detailed reports on fund usage.
In his view, this could increase compliance costs, slow down transactions, and make banks overly cautious in handling legitimate cross-border payments.
He added that such measures could also affect legal practice, particularly on issues of professional privilege where client confidentiality may be indirectly strained.
Muhangi further warned that Uganda’s ambitions in climate finance, regional investment, and digital remote work could be affected if the regulatory environment signals excessive suspicion toward foreign-linked funding.
At the centre of his argument is a broader policy concern: balancing sovereignty with economic openness.
While acknowledging the need to protect national interests, he said the Bill risks narrowing opportunity for Ugandans engaged in cross-border work and weakening investor confidence.
“The question is not whether sovereignty should be protected,” he said. “It is whether it can be protected without criminalising ordinary economic life or redefining citizenship through administrative power.”
The Bill continues to attract debate from legal experts, policymakers, and civil society groups as discussions on its implications intensify.