The Protection of Sovereignty Bill, 2026 has sparked intense debate, with critics warning it could disrupt Uganda’s financial architecture, even as supporters argue it is necessary to shield national interests in an evolving global landscape.
The Governor of the Bank of Uganda, Michael Atingi-Ego, has told Parliament that the central bank was never consulted during the drafting of the controversial Protection of Sovereignty Bill, 2026—triggering sharp criticism from legislators over what they described as a disjointed government process.
Appearing before a joint sitting of the Defence and Internal Affairs Committee and the Legal and Parliamentary Affairs Committee, Atingi-Ego warned that, while safeguarding national interests is a legitimate goal, the Bill in its current form could undermine Uganda’s economic progress.
“True national sovereignty is built on economic strength and financial independence,” he said. “The Protection of Sovereignty Bill 2026, as currently drafted, risks reversing three decades of successful financial development through liberalisation that has sustained economic growth.”
He added that with appropriate technical refinements, Parliament could protect national interests without jeopardising Uganda’s financial system, which he described as critical to achieving the country’s ambition of growing into a $500 billion economy.
The Governor’s admission came in response to questions from lawmakers, including Jonathan Odur and Abdu Katuntu, who sought clarity on whether the central bank had been involved in shaping the Bill or advising the Executive on its monetary implications.
Odur questioned the extent of engagement between the Bank of Uganda and the government, asking whether the institution had an opportunity to provide input before the Bill was tabled.
Katuntu, however, was more critical, urging the central bank to strengthen coordination with the Ministry of Finance and other government bodies to prevent similar situations in the future.
“You should have raised this issue in Cabinet,” Katuntu said. “Government institutions should be agreeing. By the time a bill comes to Parliament, there must have been enough consultation.”
He described the current situation as “ugly,” noting that state agencies appearing before Parliament seemed divided over the same piece of legislation.
“What we are doing today is what should have been done by government,” Katuntu added. “Consulting the central bank, the Financial Intelligence Authority, Makerere University, and other stakeholders should have happened before this Bill was brought forward.”
Katuntu further expressed concern about apparent confusion among stakeholders regarding the origins and intent of the legislation, warning that it reflects deeper coordination failures within government.
“That is the ugly position the government has put us into. There is a big, big problem,” he said.
The Protection of Sovereignty Bill, 2026 has sparked intense debate, with critics warning it could disrupt Uganda’s financial architecture, even as supporters argue it is necessary to shield national interests in an evolving global landscape.
