Compliance among non-governmental organisations in Uganda has risen to 62.4% from 26.8% before 2016, the NGO Bureau said, but the sector continues to face mounting pressure from suspensions, funding cuts and regulatory uncertainty. Stephen Okello, executive director of the NGO Bureau, attributed the improvement to greater awareness of legal requirements and increased engagement between regulators and organisations. He spoke during the NGO Risk, Compliance, and Resilience Conference 2026, organised by Onyango and company advocates in partnership with the NGO Bureau and Civic Advisory Hub. However, Okello noted that many NGOs still struggle to understand and fulfil their obligations, and compliance now extends far beyond registration to cover taxation, employment, data protection, financial accountability and immigration laws.
A significant gap remains in governance understanding. The NGO Bureau said about 95% of NGOs were inadequately familiar with their governing documents, a weakness that exposes them to internal disputes, governance failures and operational risks. Okello urged founders, board members and staff to understand their organisations' constitutions and internal rules, which guide decision-making, financial management and human resource practices. He also questioned whether smaller NGOs should face the same compliance expectations as larger organisations, noting that established institutions could afford compliance officers while smaller groups often lacked the financial and administrative capacity to meet all requirements.
The sector faces acute pressure from suspensions and donor withdrawals. Yona Wanjala, executive director of Civic Advisory Hub, said suspensions had created anxiety across the sector, forcing some organisations to suspend operations and lay off staff. Suspension letters reportedly cited allegations that some organisations were involved in activities considered prejudicial to national security, with some cases already before court. Wanjala called for transparency and due process in investigations, urging authorities to provide clear timelines and give affected organisations an opportunity to defend themselves. He warned that prolonged suspensions could disrupt service delivery, cost jobs and weaken civil society organisations, while uncertainty over the regulatory environment could discourage donors from supporting programmes.
International funding has become less reliable. The sector is facing additional financial pressure following changes in international aid, including the withdrawal of United States Agency for International Development support under the Trump administration and the departure of other donors, including the Democratic Governance Facility. Wanjala urged NGOs to explore alternative funding sources, including income-generating activities, provided the proceeds are used in accordance with the law and their organisations' objectives. Commercial banks have also warned NGOs to update their registration records, donor information and governance documents to avoid transaction delays and possible restrictions on their accounts.
Officials called for stronger partnership between regulators and the NGO sector. The government is reviewing the NGO Act and the national NGO policy to address changes in the sector, Okello said. He also criticised NGOs that prioritise donor interests over community needs, saying some had shifted from demand-driven interventions to programmes shaped by funding priorities. Both Okello and Wanjala called for stronger engagement between regulators and NGOs to improve compliance, address capacity gaps and ensure enforcement does not unnecessarily disrupt legitimate civil society work.