Uganda NGO Compliance Improves to 62.4% Despite Mounting Sector Pressures

Compliance among non-governmental organizations in Uganda has experienced a notable rise, climbing from 26.8% prior to 2016 up to 62.4%. According to Stephen Okello, executive director of the NGO Bureau, this progress stems from heightened legal awareness and better engagement between regulators and civic groups. However, the sector continues to grapple with serious operational threats, including funding cuts, regulatory ambiguities, and widespread suspensions.

Speaking at the NGO Risk, Compliance, and Resilience Conference 2026, experts noted that regulatory compliance now stretches far beyond initial registration and permit renewals. Organizations must navigate complex taxation, employment standards, data protection rules, financial accountability measures, and immigration laws. Okello pointed out that about 95% of NGOs remain inadequately familiar with their own governing documents, leaving them vulnerable to internal disputes, governance weaknesses, and compliance failures. He also questioned whether smaller grassroots groups should bear the exact same administrative and financial burdens as larger, well-funded institutions.

Meanwhile, Yona Wanjala, executive director of the Civic Advisory Hub, warned that arbitrary-feeling suspensions and regulatory anxiety are forcing organizations to halt operations and shed jobs. Wanjala emphasized the need for transparency, clear timelines, and due process in government investigations, noting that unresolved probes create a pervasive climate of fear where organizations constantly wonder who might be targeted next.

These regulatory pressures are compounded by significant financial challenges. The sector has faced major international aid reductions, including the withdrawal of USAID support and the departure of the Democratic Governance Facility. In response, experts have urged civil society groups to diversify their funding models through lawful income-generating activities. Additionally, commercial banks are tightening requirements, warning NGOs to urgently update their governance records and donor details to prevent transaction disruptions.

As the government reviews the NGO Act and national policy to address these emerging dynamics, stakeholders continue to call for constructive dialogue. The goal remains ensuring that regulatory oversight protects public interest without unnecessarily crippling legitimate civil society service delivery.

Read more details on the original report by Nile Post.