Govt urges NGOs against foreign donor funding

The Ministry of Internal Affairs has warned Non-Governmental Organizations (NGOs) to desist from taking up foreign donor funds with stringent conditions ahead of the 2026 general elections.
According to the ministry, several NGOs ceased operations in Uganda after the heated 2021 elections as some were suspended by government.
NGO Bureau executive director Stephen Okello said the country had over 14, 200 NGOs in 2019 but the figure has dropped to around 6, 000 in 2024.
"We encourage NGOs to become self-sustaining by utilizing 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 (donors)," he added.
In 2021, President Museveni suspended the Democratic Governance Facility (DGF), accusing it of operating a huge fund without proper government oversight.
The same year, government through the NGO Bureau also suspended operations of 54 NGOs.
"You may see an NGO here today and gone tomorrow. It's crucial for NGOs to think about sustainability. 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," Okello cautioned.
Regarding faith-based organizations, Okello said all religious activities must register as NGOs noting that government is developing a policy to address issues affecting such organizations.
Speaking to Monitor, Dr Livingstone Sewanyana, the Executive Director of the Foundation for Human Rights Initiative (FHRI) said the NGO Act, 2024 provides for organizations to engage in income-generating activities but the law does not provide for automatic tax exemption for NGOs.
"Even though these funds are reinvested in our operations. This matter needs to be revisited," Sewanyana said.
He also noted that local philanthropy in Uganda remains limited, making NGOs highly reliant on foreign donor funding. "
“There are few people willing to support socially-oriented activities. So, we look for funding abroad," he added.
Ssewanyana emphasized that it is difficult to discuss NGO sustainability while human rights abuses continue in the country, adding that Uganda has consistently had negative election experiences," he said.
Sewanyana urged the Ugandan government to draw lessons from the November 5 elections in the United States where voter turnout was high and uninterrupted in what several observers concluded were peaceful, free and fair elections.