By Sadique Bamwita
Cabinet has dropped plans to redevelop Kampala’s historic City Square into a commercial complex, ending uncertainties on the controversy surrounding the proposed allocation of one of the capital’s few remaining public green spaces to a private investor.
The decision has been announced by the Minister for ICT and National Guidance, Justine Kasule Lumumba.
This follows several objections from Kampala city leaders, opposition politicians and heritage conservation advocates who strongly challenged the proposed construction of a hotel and shopping mall at the protected site.
“Cabinet has decided to reverse the proposal for the development of City Square, formally known as Constitution Square, and retain the site’s existing legal status,” Lumumba said.
‘This decision followed consideration of the site’s history, its legal protection, and the environmental and urban planning issues raised by the proposal,” she added.
The latest cabinet position comes just days after Attorney General Sam Mayanja openly defended the proposed development and dismissed objections concerning the square’s ownership and redevelopment.
The City square saga stems from the letter dated August 30, 2026, authored by President Museveni, in which he directed Kampala Minister Minsa Kabanda to evaluate a proposal submitted by businessman Hajj Bulwadda.
The investor had proposed transforming approximately two acres of City Square into a modern commercial complex featuring a hotel, shopping mall, retail facilities and solar-powered infrastructure.
In his directive , Museveni instructed Kabanda to consult Kampala Capital City Authority (KCCA) and report on the project’s feasibility.
However, the proposal got negative reaction from Kampala Lord Mayor Ronald Balimwezo and Leader of the Opposition Joel Ssenyonyi, who warned that commercial development would deprive residents of an important recreational, environmental and historical landmark.
Balimwezo reasoned that City Square serves as a vital green space, stormwater absorption area and emergency assembly point in Kampala’s heavily built-up central business district.
He also questioned the legality of constructing commercial buildings on land already designated for heritage protection.
Lumumba explained that the Constitution Square is a “protected heritage site,” adding, “Its protection dates back to 2007 and is recognised under the Museums and Monuments Act, 2023, and the heritage protection instrument issued in 2024.”
The protected area covers approximately 1.172 hectares, comprising plots 5, 6 and 7.
It also houses the 1945 War Memorial, commemorating Ugandan soldiers who died during the First and Second World Wars.
Originally established during the colonial period as Government Square, the site was subsequently renamed Constitution Square following Uganda’s adoption of the 1995 Constitution.
“The Square and its memorial are part of our national history. Decisions about the site must respect that history and its protected status,” Lumumba emphasised.
Bassajjabalaba Reacts
The latest dispute had also revived questions surrounding businessman Hassan Basajjabalaba’s previous interests in the property.
Basajjabalaba has maintained that his company secured redevelopment rights from the former Kampala City Council in 2001 and paid Shs 1.6 billion as a premium before the arrangement was cancelled.
He has subsequently pursued compensation, although government officials have disputed his claims to the land.
City square has faced several redevelopment attempts over the past two decades, including an earlier commercial proposal that encountered government resistance in 2007.
Cabinet’s latest decision effectively closes the current proposal to transform the site into a hotel and shopping complex, although it does not resolve any outstanding compensation claims arising from previous agreements.
In conclusion, Hon.Lumumba insists that the government’s position was now definitive, preserving one of Kampala’s most prominent historical landmarks and public open spaces.
“The public should therefore be clear: Cabinet has reversed the development proposal. Constitution Square will retain its existing legal status,” she said.
