Politics 29 April 2026 Daily Monitor (Uganda)
Bank of Uganda Governor Urges Caution on Protection of Sovereignty Bill 2026
Bank of Uganda Governor Dr. Michael Atingi-Ego has warned lawmakers that the Protection of Sovereignty Bill 2026 could disrupt financial inflows, undermine economic stability, and conflict with the central bank's constitutional independence. The BoU submission highlights risks to remittances, FDI, and the banking sector from the bill's broad definitions and funding caps. Source: https://www.monitor.co.ug/uganda/news/national/verbatim-bank-of-uganda-governor-tells-govt-to-go-slow-on-sovereignty-bill-5440628
The Bank of Uganda (BoU) has submitted a detailed technical assessment to Parliament’s Joint Committee on Defence and Internal Affairs, Legal and Parliamentary Affairs, cautioning against hasty passage of the Protection of Sovereignty Bill 2026.
Governor Dr. Michael Atingi-Ego emphasized that true sovereignty relies on economic strength and financial independence. The bill, which targets ‘agents of foreigners’ through registration mandates, funding limits of UGX 400 million annually, and strict oversight by the Ministry of Internal Affairs, clashes with BoU’s exclusive mandate under Article 162 of the Constitution and laws like the Financial Institutions Act.
Key concerns include regulatory overlap creating dual licensing for banks and FinTechs, potential de-risking by global correspondent banks, and disruptions to vital inflows like USD 1.5 billion in remittances and USD 3.4 billion in FDI. Provisions criminalizing information that ‘damages the economy’ could stifle policy research and investor confidence.
The BoU warns of balance of payments pressures, Shilling depreciation, higher interest rates, and isolation from international finance systems, including IMF and EAC obligations. It recommends exemptions for regulated financial entities, disclosure-only rules for routine transactions, and alignment with anti-money laundering frameworks.
Without refinements, the bill risks ‘voluntary shocks’ derailing Uganda’s path to a USD 500 billion economy.
Source: Daily Monitor (Uganda)