Title: Challenges to the Effective Implementation of Corporate Governance Principles in Military Enterprises in Uganda
Authors: Nicholas Mutegyeki
Dr Valentine Tebi Mbeli
Dr Godswill Owoche Antai
Volume: 10
Issue: 8
Pages: 256-272
Publication Date: 2026/08/28
Abstract:
This study assesses the adequacy of the legal and institutional frameworks governing corporate governance in Uganda's military enterprises, with particular reference to the National Enterprise Corporation (NEC) and its subsidiaries. It is motivated by the growing tension between corporate governance norms and the unique operational environment of military-linked commercial entities, which are characterised by national security imperatives, executive dominance, and limited transparency. The study adopts a doctrinal research methodology, relying on a systematic analysis of primary sources, including the Constitution of the Republic of Uganda (1995), the National Enterprise Corporation Act, the Companies Act, the Uganda Peoples Defence Forces Act, the Competition Act, and the Public Finance Management Act, as well as relevant judicial decisions. Secondary sources, such as journal articles, policy documents, legal commentaries, and international governance standards, particularly the OECD Guidelines on Corporate Governance of State-Owned Enterprises (2024), are also utilised to provide comparative and analytical depth. Findings reveal that while Uganda's legal framework contains formal corporate governance provisions, their effectiveness is significantly weakened in military enterprises due to statutory concentration of power, expansive national security exemptions, politicised board appointments, weak regulatory enforcement, and fragmented institutional oversight. This study concludes that these deficiencies undermine board independence, accountability, and transparency. It recommends targeted legal and institutional reforms, including strengthening board autonomy, narrowing security-based exemptions, and establishing an independent state-ownership coordination framework to enhance corporate governance in military enterprises.