Ugandan youth activist Nyanzi Martin Luther has announced plans to revise a controversial NGO funding proposal after civil society leaders warned that the initiative could threaten the independence of the country’s civic sector.
Nyanzi, who has been campaigning for the creation of a National NGO Fund, said the proposal would be amended and renamed before being formally submitted to Parliament.
“We shall first amend it and also rename it to favour the civil society organisations,” he said in a statement posted on social media, indicating that the petition would only proceed after revisions are completed.
The proposal has generated intense debate in Uganda’s civil society and governance circles since details emerged earlier this year. While supporters argue that local organisations need alternative sources of financing amid declining donor support, critics have questioned whether government-backed funding could compromise the autonomy of groups that often monitor public institutions and advocate for accountability.
The backlash became more visible after several civil society leaders publicly challenged the proposal during stakeholder discussions in Kampala.
Sarah Bireete, Executive Director of the Centre for Constitutional Governance (CCG), warned that government-controlled funding mechanisms risk shrinking civic space and limiting the operational freedom of non-governmental organisations. She argued that any reforms affecting the sector should emerge from broad consultations rather than unilateral proposals.
Lawyer and governance advocate Andrew Karamagi also defended the role of civil society organisations, saying NGOs remain an essential component of Uganda’s social and political landscape and should not be subjected to measures that could undermine their independence.
Civic activist Job Kiija was among the strongest critics of the proposal, arguing that previous attempts to establish similar government-controlled NGO funds had been rejected because they were widely viewed as mechanisms for control rather than support.
“NGOs exist to fill the gaps left by the inefficiencies of government,” Kiija said during discussions on the proposal, questioning how organisations could effectively hold authorities accountable while relying on state financing.
Sarah Mukasa, a women’s rights activist, similarly raised concerns about the timing and intent of the proposal, saying critics feared it could result in greater state influence over civil society operations.
The proposal comes amid longstanding tensions between Ugandan authorities and sections of the NGO sector. In recent years, dozens of organisations have faced suspensions, investigations, and regulatory scrutiny over compliance and funding issues, developments that civil society groups say have contributed to concerns about shrinking civic space.
Nyanzi has defended the initiative, arguing that many community-based organisations struggle to survive because of heavy dependence on foreign donors whose funding priorities frequently change. He has said the proposed framework is intended to strengthen sustainability, improve accountability and support local development efforts rather than restrict NGO activity.
According to the proposal, the National NGO Fund would provide financial support to registered local organisations while introducing measures aimed at strengthening oversight and transparency. The initiative has drawn attention from governance observers because it touches on broader questions surrounding foreign aid dependence, civic freedoms and state regulation of civil society.
Although the petition has not yet been formally tabled before Parliament, the debate has already evolved into a wider discussion about how African governments can support local civil society organisations without undermining their independence.
For now, Nyanzi’s decision to revise the proposal appears to be an attempt to ease tensions with civil society leaders and build consensus before lawmakers are asked to consider the measure.
Whether the amendments will satisfy critics remains unclear, but the controversy has already placed Uganda’s NGO sector, funding model and civic freedoms at the centre of a national policy debate.
