Political activist Nyanzi Martin Luther has formally submitted the NGO Funding Bill, 2026 to Parliament, marking a significant step in his campaign to reform Uganda’s civil society financing framework.
The draft legislation was delivered to the Clerk to Parliament on February 27, 2026, with copies forwarded to the Office of the Leader of the Opposition, the Deputy Speaker, and the Speaker of Parliament.
The proposed law seeks to address structural gaps within Uganda’s civil society sector by strengthening local technical capacity, reducing overreliance on foreign donor funding, and introducing digital systems to enhance transparency and accountability in NGO operations.
According to Nyanzi, the Bill underwent a month-long informal consultation process with several Members of Parliament, generating notable interest around issues of NGO sustainability, localization of expertise, and digital transformation.
Key Proposals in the Bill
1. Prioritizing Local Technical Skills
The Bill proposes tax exemptions on digital, educational, and health-related equipment to incentivize NGOs to invest in Ugandan talent, technology, and institutional infrastructure.
2. Sustainability and Self-Reliance
A central pillar of the legislation is the creation of a structured National NGO Fund aimed at empowering Community-Based Organizations (CBOs) and reducing dependency on foreign donors by promoting domestic resource mobilization.
3. Enhanced Transparency and Digital Reporting
The draft calls for the introduction of mandatory digital reporting systems to ensure that civic funding aligns with Uganda’s national development priorities, including the National Development Plan III (NDP III).
In his submission, Nyanzi requested that the Clerk initiate administrative procedures for a Motion for Leave to introduce the draft as a Private Member’s Bill, in accordance with Rule 121 of Parliament’s Rules of Procedure. He further expressed readiness to table a harmonized version incorporating feedback received during consultations with legislators.
Nyanzi underscored the urgency of introducing the Bill within the ongoing 2026/2027 budget cycle, arguing that timely legislative action is critical to ensuring reforms are reflected in national funding priorities. Parliament has yet to announce when the Bill will be scheduled for First Reading.
