With the country gearing up for the 2026 elections, the Ministry of Internal Affairs has warned Non-Governmental Organisations (NGOs) to desist from taking on donor funds with stringent conditions that may lead them to engage in partisan politics.
According to the Internal Affairs Ministry, many NGOs ceased operations in Uganda after the 2021 elections, with some being suspended by the government.
Mr Stephen Okello, the Executive Director of the NGO Bureau, cautioned NGOs during yesterday’s 25th Annual General Meeting of the Foundation for Human Rights Initiative (FHRI) in Kampala.
He said during the verification exercise conducted in 2019, Uganda had 14,207 NGOs operating in the country but after the elections, they dropped to 6,000.
“Organisations know very well that they are not supposed to engage in partisan politics, where they front or sponsor a particular candidate. They can engage in other activities but sponsoring a particular candidate,’’ Mr Okello said.
Adding on: “We encourage NGOs to become self-sustaining by utilising Section 46 of the NGO Act, which allows them to raise funds locally. NGOs should not rely solely on foreign donations, as over 98 percent currently depend on them.”
Mr Okello also revealed that “NGOs that were closed for various reasons are not permitted to continue operations.”
In 2021, President Museveni suspended the activities of Democratic Governance Facility (DGF), accusing it of operating a huge fund without proper government oversight.
The same year, the government, through the NGO bureau, cracked the whip on at least 54 NGOs by suspending their operations.
Regarding faith-based organisations, Mr Okello said all religious activities must register as NGOs. He, however, added the government is developing a policy to address issues affecting such organisations.
In an interview with this publication, Mr Nicholas Opiyo, a human rights lawyer and the executive director of Chapter Four, said the suggestion that the number of registered NGOs has dropped mainly because of declining donor funds is misleading and disingenuous.
“It is the State, through its agencies, that has closed domestic funding channels such as the Democratic Governance Facility, shut down NGOs, fabricated charges against sector leaders and their organisations, frozen bank accounts and expelled foreign workers in the NGO space,” he said.
Adding: “The regulators have taken a security posture toward NGOs, preferring to treat them as security concerns rather than development partners. They have invested their time and resources in peddling a false narrative of the sector being agents of foreign interest.”
He also said the political and bureaucratic infrastructure’s hostility to the sector and development partners has contributed to the throttling rather than enhancing the NGO sector, noting that the bureau has been the clearing house for this repression.
Dr Livingstone Sewanyana, the executive director for FHRI, said Section 46 of the NGO Act, as amended in 2024, provides for organisations to engage in income-generating activities but the law does not provide for automatic tax exemption for NGOs
“Some of the NGOs have adopted income generating activities such as real estates, but the law requires NGOs to pay income tax and property tax on funds generated through real estate and other activities, even though these funds are reinvested in our operations. This matter needs to be revisited,” Mr Sewanyana said.
He also noted that local philanthropy in Uganda remains limited, making NGOs highly reliant on foreign donor funding.
Mr Ssewanyana urged the Ugandan government to learn from the recent elections in the United States, where the voter turnout was high. He also appealed to the Electoral Commission to refrain from shutting down the internet during future elections, a practice observed in past polls.
FUNDING CRISIS
The NGO bureau indicates that the funding for NGOs globally is dropping and many of them are struggling to raise money. Mr Stephen Okello, the Executive Director of the NGO Bureau, advised NGOs to take advantage of big companies operating locally rather than depending on foreign funds. “If you are entirely dependent on donations, your independence and security are compromised. You end up aligning with the interests of those who fund you,’’ he said.
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