By KT Reporter
The Attorney General, Kiryowa Kiwanuka, has proposed sweeping amendments to the controversial Protection of Sovereignty Bill, indicating how the government is retreating from some of the controversial clauses.
The original Bill tabled before Parliament has been widely rejected by the banking sector, the legal fraternity, religious leaders, and civil society organizations, among others.
They have raised concerns about the vague definitions and the sweeping power granted to the Minister of Internal Affairs.
Critics have raised concerns that the proposed law would stifle civil society, restrict freedom of expression, and curb foreign investments and remittances to Uganda.
President Museveni, on Thursday, in a three-page letter, stated that the Bill that is being considered jointly by the Committee of Defence and Internal Affairs and the Legal and Parliamentary Affairs Committee was far different from what he had initiated in cabinet.
“Which Sovereignty Bill is the rwaari about? The one I initiated in the cabinet or another …. That is not the Bill I initiated,” said Museveni.
The President said he had talked to the Government Chief Whip, Hamson Obua, and the chairpersons of the relevant Committees to make the Bill concentrate on sovereignty in policy-making and not “Meander in the areas of free private enterprise transfers or church donations.”
The Inter-Religious Council of Uganda was among the bodies that called on the government to withdraw the original bill in its entirety.
Kiryowa Kiwanuka and State Minister for Defence, David Muhoozi, again appeared before the joint sitting of the Defence and Internal Affairs Committee and the Legal and Parliamentary Affairs Committee.
The Attorney General acknowledged the concerns raised in the various memoranda that have been presented to the committee in the last two weeks. He told the committee the amendments were in response to stakeholder feedback.
“We have tried to list out as much as possible… because we have heard what the concerns are,” he said.
Kiwanuka said the revisions are intended to “remove doubt” and clarify that the law targets only individuals acting on behalf of foreign interests in political activities.
A key change in the revised text is a shift in focus from “any person” to specifically an “agent of a foreigner.” The Chief Government Legal Advisor and the minister state that the change is to prevent misinterpretation of the law.
“For avoidance of doubt, this Act applies to an agent of a foreigner,” said Kiwanuka.
The government is also suggesting changing the contentious clause 2 of the Bill, which many have said is vague and has an overly broad definition.
“We are saying for avoidance of doubt, this act applies to an agent of a foreigner who engages in any of the following activities through any means, including the use of digital platforms. For example, engages in political activities in Uganda to further the interest of a foreigner,” Kiwanuka explained.
He added that the amendments are designed to ensure the law only applies to clearly defined activities to be prohibited by the proposed law. Under the revised proposals, the Bill will apply only to individuals who, on behalf of foreign actors, engage in political activities such as influencing legislation, government policy, or electoral outcomes.
“For example, if I’m the Attorney General and I receive from a foreigner a motion of any nature, that’s a prohibited activity.”
Kiwanuka outlined prohibited activities to include receiving foreign funding to influence political decisions, lobbying government officials on behalf of foreign interests, or sponsoring individuals and organisations to advance foreign agendas. “A Ugandan is at liberty to challenge and question any policy,” he said.
“But when that person is sponsored by a foreigner to promote that agenda, that is where the problem starts.”
He explained that while citizens may oppose projects like the crude oil pipeline on environmental grounds, it becomes problematic if such advocacy is.
Responding to the outcry that the Bill could disrupt legitimate financial flows, the Attorney General proposed explicit exemptions for a wide range of activities. These include foreign funding received by banks, health facilities, academic institutions, and faith-based organisations, provided the funds are used for lawful and regulated purposes.
The Bill will also explicitly exclude legitimate inflows such as foreign direct investment, diaspora remittances, trade finance, humanitarian aid, and development assistance. “Nothing in this Act shall be construed as prohibiting… lawful foreign exchange inflows,” Kiwanuka said.
“So we are saying that notwithstanding nothing in this act shall be construed as prohibiting or requiring compliance with it with this act for lawful foreign direct investment, portfolio investment, diaspora remittances, export proceeds, trade finance, commercial loans, humanitarian assistance, technical assistance, grants, concession of financing, development assistance, or any other lawful foreign exchange inflow and such related activities.”
He added that the clarifications were introduced after stakeholders raised fears that the original draft could harm Uganda’s investment climate and essential services. The amendments also seek to tighten definitions within the Bill.
A “foreigner” will now be defined based on involvement in the prohibited activities, rather than nationality alone. He stated that Ugandans living abroad will no longer be classified as foreigners under the law.
And the definition of “agent of a foreigner” will be tied directly to engagement in the specified political activities, meaning individuals cannot be labelled as such unless they meet that threshold.
The Attorney General also proposed removing provisions that allowed the minister discretionary powers to designate individuals as foreigners, a clause that had drawn criticism for being too broad.
The amendments replace prior requirements for ministerial approval of foreign funding with a declaration system. Under the new approach, agents of foreign entities will be required to declare foreign funds exceeding a specified threshold, but will not need prior approval to receive them.
“The person can receive the money… but must declare it,” Kiwanuka said, explaining that the change is intended to reduce excessive discretion and bureaucracy.
The Bill also introduces stricter thresholds for criminal liability, requiring proof of intent in offences such as economic sabotage.
Kiwanuka said this was meant to avoid penalising individuals unfairly under a “strict liability” standard.
“We are introducing intention… so that the person does this purposefully,” he said. Other provisions seek to prevent foreign agents from implementing government functions or policies without approval, while allowing legitimate collaboration under regulated frameworks.
Some of the changes that the government is suggesting seem to address the concerns raised by the Bank of Uganda Governor, Michael Ating-Ego, while appearing before the Committee during the week. They also address concerns by the Financial Intelligence Authority.
Many have stated that whatever is in the proposed law is already covered by the Public Finance Management Act and the Anti-Money Laundering Act, among others. It is expected that the amendments suggested by the government will feature in the joint committee report to parliament next week.
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