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Military exercises cancelled and visa restrictions imposed after country passes tough laws targeting gay community.
Government spokesman says Walter Reed Project in the capital Kampala has been "training youths in homosexuality".
Museveni says homosexuals are "mercenaries" and "prostitutes" as he signs law setting harsh penalties for gay practices.
Move follows failure of government and M23 to agree on wording of document to end the insurgency officially.

Ugandans have held their first multi-party election for a quarter century, overshadowed by opposition accusations of government fraud in a bid to extend its two-decade rule. 

Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
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