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Gov’t Rescues Gaddafi Mosque With 14B Cash Bailout

In a dramatic turn of events, the Ugandan government has stepped in to save the iconic Gaddafi National Mosque from being auctioned, bringing immense relief to the Muslim community across the country. The decision followed intense public outcry and legal pressure stemming from a land dispute involving the Uganda Muslim Supreme Council (UMSC).

At the heart of the crisis was a UGX19 billion debt claimed by businessman Justus Kyabahwa, after a failed land deal with UMSC dating back to 2020. The debt, fueled by a punishing interest clause, had grown over four years
putting one of Uganda’s most revered religious landmarks at risk.

The announcement of the government’s UGX14 billion bailout came through MP Agnes Kunihira, Chairperson of the Parliamentary Committee on Gender, Labour, and Social Development, during her presentation of the Ministry’s 2025/26 budget policy.

“The mosque is not just a building it’s a symbol of faith, identity, and unity for Uganda’s Muslim community,” Kunihira noted. “Letting it go would have been unthinkable.”

The trouble began when UMSC sold a 517-hectare ranch in Sembabule District to Kyabahwa for UGX3.584 billion. The deal, signed by top UMSC officials including Mufti Shaban Ramadhan Mubajje, promised full land access within 60 days. But things quickly unraveled. A prior lease on the land had not been resolved, and to make matters worse, the land was later discovered to have been sold to another buyer.

Kyabahwa, unable to take possession of the land, turned to the courts. He won the case, and the Commercial Court authorized the auction of the Gaddafi Mosque to recover nearly UGX19 billion in dues.

With protests growing and the Muslim leadership under fire, the government stepped in just in time to stop the sale. For Mufti Mubajje, the ordeal has been both painful and humiliating his leadership questioned, and his name dragged through headlines. Now, with the mosque saved, he has a chance to breathe, but not without lingering questions about how the situation was allowed to reach this point.

MPs across the board supported the mosque bailout but raised concerns about mismanagement.

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