Women’s rights advocates, civil society organisations and business leaders have warned that the government’s renewed proposal to grant the Uganda Revenue Authority (URA) access to Ugandans’ bank account information could undermine women’s economic empowerment, discourage formal banking and threaten the survival of small businesses.
The groups say the proposed measure, which was discussed by Minister of State for Finance Amos Lugoloobi in Parliament on October 15, 2026, risks reversing gains in financial inclusion if implemented without clear legal limits, independent oversight and safeguards against abuse.
Speaking at a press conference at the Forum for Women in Democracy (FOWODE) offices on Wednesday morning, the organisations called on Parliament to reject the proposal in its current form, arguing that efforts to improve tax compliance should not compromise financial privacy or undermine public confidence in the banking system.
Patricia Munabi Babiiha, FOWODE’s executive director, said unrestricted access to private financial information could disproportionately affect women operating small businesses, many of whom depend on limited working capital to sustain their enterprises and support their families.
She said women running food vending businesses, tailoring shops, produce stalls and salons often operate on narrow profit margins, with household and business finances closely intertwined.
According to FOWODE, restricting or freezing an account over a disputed tax assessment could disrupt a small business, deprive a household of essential income and affect children’s access to food, education and other basic needs.
The organisation warned that women with limited financial and legal resources could also struggle to challenge disputed assessments, potentially exposing them to intimidation and demands for bribes by officials threatening to block their accounts.
FOWODE further argued that the proposal could compromise women’s financial privacy and autonomy, particularly those who rely on private savings to meet household needs, protect business capital or maintain a degree of financial independence in difficult domestic circumstances.
The organisation cited the 2023 FinScope Uganda Survey, which it says found that only 34% of women held formal financial accounts, arguing that policies that discourage women from using banks could further undermine their economic inclusion.
“We will not watch as the economic gains of Ugandan women are traded away,” the organisation said in its statement, calling for tax reforms that protect women’s ability to save, invest and run businesses.
Sophie Nampewo, Oxfam in Uganda’s finance for development and economic justice coordinator, said the government’s approach could weaken public trust in financial institutions at a time when Uganda has been encouraging citizens to move away from cash-based transactions towards formal banking and digital financial services.
Nampewo cited FinScope survey figures indicating that 81% of Ugandans access formal or informal financial services, with 68% using formal services.
She said the expansion of financial inclusion had partly depended on customers trusting banks to protect their money and personal financial information.
“If banks share customers’ financial information with the government without adequate transparency or safeguards, this could undermine that trust,” she warned.
Nampewo said the absence of clear explanations about the purpose of the proposed measure and the procedures governing access to financial information could cause customers to question the confidentiality of their accounts.
She cautioned that some people could respond by withdrawing their money from formal financial institutions and returning to keeping cash at home or in their businesses.
Such a shift, she argued, could make it more difficult for authorities to monitor financial transactions and trace the movement of money, potentially undermining efforts to address illicit financial flows and mobilise revenue for national development.
Nampewo said tax compliance measures should be designed in ways that preserve the gains made in financial inclusion while supporting economic growth and protecting citizens’ rights.
The Kampala City Traders Association (KACITA Uganda) also warned that the proposed access to bank accounts could discourage traders from using formal financial services and reverse progress towards business formalisation.
Bahasha Baker, representing KACITA Uganda, said the business community supported efforts to broaden the tax base but wanted the government to pursue measures that encouraged compliance without undermining economic activity.
He said traders had gradually embraced banking, moving away from keeping large amounts of cash in their shops and other insecure places.
However, he warned that concerns about access to private financial information could prompt some traders to abandon formal banking and return to cash transactions.
“This could create serious security risks and undermine efforts to promote financial inclusion,” Baker said.
He added that the consequences could extend beyond individual traders to the wider economy, particularly if uncertainty surrounding financial privacy discouraged investment and business growth.
Baker also linked the issue to women’s economic empowerment, noting that KACITA’s Women in Business programme seeks to increase women’s participation in trade and help them achieve greater economic independence.
He said policies that undermine women’s confidence in formal banking could work against these efforts by making it harder for women entrepreneurs to protect their savings, manage business capital and expand their enterprises.
The organisations argued that although tax administration is a legitimate government responsibility, access to private financial information should be governed by clear legal authority, necessity, proportionality, due process and effective safeguards.
They cited Article 27 of Uganda’s Constitution, which protects the right to privacy, and the Financial Institutions Act, 2004, which provides a framework for protecting the confidentiality of customers’ financial information, subject to applicable legal exceptions.
They maintained that any arrangement allowing public authorities to access bank account information must have clearly defined limits and protections against misuse.
The groups called on Finance Minister Amos Lugoloobi and the Ministry of Finance, Planning and Economic Development to withdraw the proposal in its current form.
They also urged Parliament, particularly its Committee on Finance and the Uganda Women Parliamentary Association, to reject any proposal that does not provide adequate legal safeguards, independent oversight and due process.
In addition, they called for a gender and equity impact assessment of the proposed tax reforms, with particular attention to women-owned businesses, informal traders and economically disadvantaged groups.
They urged the Bank of Uganda, Uganda Bankers Association and Uganda Law Society to defend bank confidentiality and advocate for clear, enforceable rules governing lawful access to customers’ financial information.
The groups said the government should align its tax administration measures with its broader commitments to inclusive development, including the Fourth National Development Plan, the Parish Development Model and the GROW Project, which supports women entrepreneurs.
They maintained that improving tax compliance and protecting financial privacy should not be treated as competing objectives, arguing that effective tax administration must also preserve public trust, encourage formal banking and protect the economic participation of women and small businesses.
Email:homelandnewspaper@gmail.com
