Inside Uganda’s NGO Compliance Crisis as Funding Shrinks and Scrutiny Tightens

What the report says

Uganda’s NGO sector is under growing pressure from stricter banking scrutiny, heavier regulatory demands and declining donor support, according to Nile Post. The report says nonprofit organisations are facing closer checks on transactions, tougher expectations around registration and permits, and concerns about whether they can maintain financial accountability and keep operating.

The article centers on the National Bureau for NGOs and the Uganda Bankers Association, which say compliance has improved but remains incomplete across the sector. Dr Stephen Okello of the bureau said many organisations still fall short of legal requirements beyond registration, including tax, employment, data protection, immigration and governance obligations. He said compliance is now a broader institutional responsibility, while Alexander Mayanja of the bankers’ association warned that incomplete records, expired permits and unclear donor or board information can delay payments and create risks for banks.

Nile Post also highlights governance gaps inside some NGOs, especially smaller groups that may lack legal or accounting support. The bureau says many organisations do not fully understand their constitutions and governing documents, which can weaken oversight and financial controls. These issues matter because they can affect access to bank services, donor funds and operating permits.

The sector is also dealing with uncertainty linked to suspensions of some NGOs over alleged national security-related activities. Civic Advisory Hub’s Yona Wanjala said prolonged suspensions can disrupt staff and operations, while reduced donor support — including the loss of some major funding partners mentioned in the report — is making it harder for organisations to adapt and survive.