Uganda's Parliament passed the long-awaited Digital Economy and E-Commerce Act in the early hours of Thursday morning, voting 247 to 53 after a marathon session that stretched 14 hours and saw five separate adjournments.
The law, which comes into force on 1 September 2026 following Presidential assent, introduces Uganda's first comprehensive legal framework for electronic commerce, digital financial services, platform liability, data protection enforcement, and a new levy on foreign digital service providers.
The 1.5% Digital Services Levy
The most contested provision — a 1.5 percent levy on gross revenues earned by foreign digital platforms from Ugandan users — passed with 203 votes after the Government accepted an amendment to exempt platforms with annual Uganda revenues below $500,000.
The levy is expected to generate approximately UGX 180 billion ($48 million) annually according to Ministry of Finance projections.
What Changes for Ugandan Businesses
For Ugandan e-commerce operators, the law introduces mandatory registration for all platforms processing more than UGX 10 million per month, consumer protection obligations including 14-day return rights for physical goods, and requirements to display prices in Uganda shillings.
For consumers, the most visible change will be new dispute resolution rights. Buyers may escalate unresolved complaints to the newly established Digital Commerce Tribunal within 30 days of a failed merchant resolution.
