The White House has warned Uganda of possible economic "repercussions" if a new bill to crack down on homosexual activities become law.

"We would have to take a look at whether or not there might be repercussions that we would have to take, perhaps in an economic way, should this law actually get passed and enacted," National Security Council spokesman John Kirby told journalists on Wednesday.

"So, we’ll have to take a look. No decisions. We’re watching this very, very closely. And hopefully, it won’t pass and we won’t have to do anything."

The bill proposes life sentences for people who identify as gay in Uganda. It also includes the death penalty in certain cases.

It is awaiting a presidential assent before becoming law.

The European Union has also expressed deep concern about the anti-homosexuality bill.

In a statement, it said the criminalisation of homosexuality is contrary to international human rights law.

“The European Union will continue engaging with the Ugandan authorities and civil society to ensure that all individuals, regardless of their sexual orientation and gender identity, are treated equally, with dignity and respect,” it said.