By Ben Musanje
The Uganda Law Society has formally demanded the withdrawal of a key financial document tied to the controversial proposed Protection of Sovereignty Bill, 2026, citing serious legal and economic shortcomings.
In a letter dated 29 April 2026 and addressed to Amos Lugoloobi, the Minister of State for Finance, Planning and Economic Development, the Society argues that the Certificate of Financial Implications issued on 15 April does not comply with the requirements of the Public Finance Management Act.
Signed by ULS Vice President Anthony Asiimwe, the letter invokes the Society’s statutory mandate to promote the rule of law and good governance. It asserts that the certificate fails to meet the legal threshold outlined under Section 74 of the Act, which requires a comprehensive, evidence-based analysis of a bill’s financial and economic impact before parliamentary debate.
According to the Society, one of the most critical flaws is the lack of detailed budgetary analysis. The certificate reportedly cites an estimated cost of UGX 29.029 billion for implementation but presents it as a lump sum without breakdowns, methodology, or timelines. The claim that initial costs could be absorbed within an existing UGX 14.593 billion departmental budget was described as unrealistic, given the extensive new responsibilities introduced by the bill.
The lawyers’ body also faulted the certificate for failing to identify and quantify potential revenue streams embedded within the legislation. These include registration and renewal fees for agents of foreigners, fines ranging from UGX 1 billion to UGX 4 billion, forfeitures, and civil penalties payable to the Consolidated Fund. By omitting these, the Society argues, the certificate presents a one-sided fiscal picture focused only on expenditure.
Beyond fiscal concerns, the Uganda Law Society raised alarm over what it described as an inadequate economic impact assessment. The certificate allegedly limits itself to restating policy objectives rather than analyzing real-world consequences.
Citing a recent submission by the Bank of Uganda dated 28 April 2026, the Society warned that the bill could introduce regulatory fragmentation and economic instability. The central bank reportedly highlighted risks such as reduced foreign direct investment, capital flight, exchange rate volatility, and increased interest rates.
Additional concerns include potential disruptions to foreign aid, which amounted to over USD 420 million to NGOs in 2025, and possible job losses estimated between 20,000 and 50,000 in the non-governmental sector. The digital economy and fintech industries could also suffer due to bureaucratic approval processes, while diaspora remittances
worth approximately USD 1.5 billion annually may be affected.
The Asiimwe further cautioned that broad provisions in the bill, including those related to “economic sabotage,” could stifle legitimate economic discourse and investor confidence. It also warned of possible conflicts with international obligations, including those tied to the International Monetary Fund and regional agreements.
The letter, copied to key government officials including the Speaker of Parliament and the Attorney General, calls for the immediate withdrawal and reissuance of the certificate. It also urges Parliament to suspend any further consideration of the bill until a compliant and comprehensive financial analysis is presented.
The controversy sets the stage for a significant legal and economic debate over the proposed legislation and its implications for Uganda’s governance and economic future. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
