President Yoweri Kaguta Museveni has backed proposals to redevelop Kampala’s historic City Square into a modern commercial centre, reigniting a heated debate over the ownership and future of the public land. The proposed project, promoted by businessman Hassan Bulwadda, seeks to transform the approximately two-acre site in the heart of Kampala into a commercial hub featuring a hotel, shopping mall and other facilities. However, the plan has attracted opposition from city leaders and raised questions about the protection of public spaces in Uganda’s capital.
The proposed redevelopment has also revived a longstanding dispute involving businessman Hassan Basajjabalaba, who claims that his company secured rights to develop the property more than two decades ago. The disagreement centres on whether the earlier lease arrangement gives him continuing rights over the land or whether the government can proceed with a new development plan. The competing claims have placed the legal status of City Square under renewed scrutiny as authorities consider the site’s future.
Attorney General Sam Mayanja has rejected Basajjabalaba’s claims, arguing that the lease offer on which the businessman relies was subsequently cancelled by the government. According to Mayanja, leasing public land does not automatically grant a tenant permanent ownership rights, particularly where the relevant agreement has been withdrawn. He has also indicated that Basajjabalaba reportedly received compensation following the cancellation, raising further questions about whether the earlier arrangement can still be used to challenge the proposed redevelopment.
Despite the government’s position, the controversy has raised concerns about the circumstances surrounding the original lease, its cancellation and the legal documents supporting the competing claims. The dispute has attracted public attention because City Square occupies a strategic location in Kampala’s central business district and serves as an important public space. Questions remain about the legal procedures that must be followed before any major changes can be made to the site.
Kampala Lord Mayor Ronald Balimwezo has opposed the proposed commercial development, arguing that City Square should remain accessible to the public. He maintains that the space serves important social and environmental purposes, providing room for public gatherings, recreation and other civic activities. Balimwezo fears that constructing a commercial complex on the site could reduce Kampala’s limited green spaces and permanently alter the character of the city centre. His position reflects broader concerns about preserving public areas as Kampala continues to expand.
The proposal has also attracted criticism from Leader of the Opposition in Parliament Joel Ssenyonyi, who has questioned the level of parliamentary oversight and public consultation surrounding the planned redevelopment. Speaking in Parliament on September 30, Ssenyonyi raised concerns about decisions affecting public property, pointing to previous controversies involving land in Kampala. He argued that projects involving public assets require transparency and appropriate scrutiny to ensure that the interests of ordinary citizens are protected.
Museveni’s reported backing of the redevelopment follows a directive issued in August concerning the proposed project. The government later clarified that the directive required an assessment of the proposal and advice on the way forward, rather than serving as a final decision to allocate the land for commercial use. Nevertheless, the President’s support has given the proposal greater political significance, even as questions persist about the legal ownership of the site and the concerns raised by city leaders.
The government now faces the challenge of balancing its ambitions to modernise Kampala with the need to protect public property, preserve green spaces and ensure accountability in land management. While supporters believe the proposed hotel and shopping mall could stimulate business activity and transform the city centre, opponents insist that City Square should retain its public character. The final decision could set an important precedent for the management of public land in Uganda, determining whether the historic space will become a commercial destination or remain an open area for Kampala residents.
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