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Experts Urge Urgent Legal Overhaul as Uganda's Digital Transformation Accelerates

At the launch of the Uganda Data Centre Landscape 2025 Report by Raxio Data Centre, the country’s first Tier III commercial data facility, specialists emphasized the urgent need for a comprehensive and enforceable data protection regime.
14 May 2025 07:53
Kamaitha speaking at the report launch

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The accelerating pace of digital transformation in Uganda has prompted urgent calls for a stronger legal framework to protect user data. Technocrats warn that digital adoption is outpacing the country’s legal infrastructure, stressing that the time to act is now, while the transformation is still gaining momentum.

Uganda is currently experiencing a digital infrastructure boom, driven by rapid adoption of cloud computing, artificial intelligence (AI), and mobile connectivity. However, data specialists caution that the existing data protection laws are no longer sufficient to safeguard citizens’ privacy and digital security. At the launch of the Uganda Data Centre Landscape 2025 Report by Raxio Data Centre, the country’s first Tier III commercial data facility, specialists emphasized the urgent need for a comprehensive and enforceable data protection regime. 

The report highlighted the exponential growth in data usage and the regulatory gaps that must be addressed to ensure responsible digital development. “We are witnessing a sharp rise in digital activity across sectors, from fintech to healthcare,” said Caroline Kamaitha, General Manager of Raxio Data Centre Uganda. “But as this transformation unfolds, it is critical that user data is protected through robust legal instruments that ensure transparency, accountability, and data sovereignty.”

Uganda’s current Data Protection and Privacy Act requires personal data to be processed and stored within the country. While this is a step in the right direction, experts argue that the law falls short in addressing complex challenges posed by cloud computing, AI, and cross-border data transfers.

“Without detailed laws defining how data can be used, shared, or monetized—especially by foreign tech providers—we risk undermining both privacy rights and national security,” said David Ogwell, an online data engineer. “Regulators must move beyond basic compliance and adopt proactive, forward-looking standards.”

Uganda Communications Commission (UCC) reports a 30% increase in cloud service adoption over the past three years, with both government agencies and startups moving services online. As the country’s digital footprint expands, so too does the risk of data breaches, surveillance, and misuse. According to Ogwell, strengthening data protection laws will not only protect users but also enhance the performance of sectors like business and education. He emphasized the need to scrutinize how foreign companies operating in Uganda handle local user data:

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Cybercrime is also on the rise. Uganda Police Cyber Unit data shows that cybercrime incidents surged by 37% in 2023 alone, causing significant losses to businesses. Edwin Enabu noted that the absence of clear legal frameworks for incident reporting, breach accountability, and user notification leaves victims without proper recourse. He praised data centers like Raxio for offering high-level technical safeguards such as 24/7 surveillance, firewalls, and disaster recovery systems. However, he warned that these measures need to be matched by strong legal protections.

The Raxio report outlined four key drivers of Uganda’s digital future: the rise of cloud computing, expanding AI applications, data sovereignty, and sustainability. Each of these trends presents emerging regulatory blind spots.

For instance, AI systems used in finance and healthcare are now making data-driven decisions that significantly impact people’s lives. Experts insist that Uganda’s laws must define how such data is collected, anonymized, and processed, especially in decisions related to creditworthiness, insurance, and medical diagnoses. While Uganda’s National Development Plan III prioritizes ICT infrastructure as a core economic driver, the country’s governance frameworks are lagging behind physical infrastructure developments such as data centers, 5G, and fibre networks.

Experts are calling for a collaborative approach to reform. Regulators, private sector actors, and civil society must work together to co-create modern data protection laws that align with international standards like the EU’s GDPR, while remaining adapted to Uganda’s local realities.

“Digital trust is essential for adoption,” Kamaitha stressed. “We need laws that reflect the real risks users face and offer meaningful safeguards—not just for compliance, but for confidence.” As Uganda embraces a data-driven future, experts warn that failing to modernize its regulatory framework could turn the promise of digital transformation into a serious liability.

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