President Yoweri Museveni has endorsed proposals to redevelop Kampala’s historic City Square into a modern commercial centre, reigniting debate over the ownership, management and future use of the public land.

The proposed project, promoted by businessman Hassan Bulwadda, envisages the construction of a hotel, shopping mall and other commercial facilities on the approximately two-acre site in the heart of the capital.

However, the plan has attracted opposition from city leaders and revived a longstanding ownership dispute involving businessman Hassan Basajjabalaba, who maintains that his company secured rights to develop the property more than 20 years ago.

At the centre of the controversy is whether the earlier lease arrangement gives Basajjabalaba continuing rights over the land or whether City Square remains public property available for government-directed development.

Attorney General Sam Mayanja has rejected Basajjabalaba’s ownership claims, arguing that the lease offer relied upon by the businessman was subsequently cancelled.

Speaking on Thursday, October 22, Mayanja maintained that leasing public land does not automatically grant a tenant permanent ownership rights.

He further indicated that the government had rescinded the earlier offer and that Basajjabalaba had reportedly received compensation, suggesting that the matter should not prevent authorities from pursuing plans to modernise Kampala.

Mayanja’s position is that the cancellation of the lease means the former arrangement cannot be used to establish continuing ownership over City Square.

Nevertheless, the competing claims have raised questions about the documentation surrounding the property and the circumstances under which the earlier lease was issued and withdrawn.

The matter has also attracted parliamentary attention.
City Leaders Oppose Commercial Development
Kampala Lord Mayor Ronald Balimwezo has emerged as one of the prominent opponents of the proposed redevelopment, arguing that City Square should retain its public character.

Balimwezo maintains that the space serves important environmental and social functions, providing an area for public gatherings, recreation and other civic activities.

He has warned that converting the site into a commercial complex could reduce the capital’s already limited green spaces and fundamentally change the character of Kampala’s central business district.

The disagreement reflects broader concerns about balancing urban development with the preservation of public spaces in a rapidly expanding city.

Supporters of redevelopment, on the other hand, argue that modern commercial infrastructure could contribute to Kampala’s transformation and increase business activity in the city centre.

Ssenyonyi Questions Parliament’s Role
The proposal has also drawn scrutiny from the Leader of the Opposition in Parliament, Joel Ssenyonyi, who has questioned the level of parliamentary involvement in discussions concerning the future of the public property.

Speaking in Parliament on September 30, Ssenyonyi raised concerns about proceeding with the project without sufficient public scrutiny.

He cited previous controversies surrounding the development and management of public land in Kampala, arguing that decisions affecting public assets should be subjected to appropriate oversight.

The concerns have placed additional pressure on government officials to clarify the legal status of City Square, the process through which redevelopment proposals are assessed and the extent to which the public and elected leaders will be consulted.

Museveni’s Directive Under Scrutiny
The controversy follows an earlier directive by President Museveni in August concerning the proposed redevelopment.
The government subsequently clarified that the directive required an assessment of the proposal and advice on the way forward, rather than constituting a final decision to allocate the land for commercial development.

Museveni’s reported backing of the redevelopment has nevertheless added political weight to the proposal, even as questions remain about the competing claims and the future of the site.

The government now faces the challenge of reconciling its urban modernisation ambitions with concerns over public land ownership, environmental preservation and accountability in the management of public assets.

As the debate continues, the central question remains whether City Square should be transformed into a commercial destination or preserved as an open public space for Kampala residents.

The outcome is likely to have wider implications for how public land is managed and how competing interests are balanced in the redevelopment of Uganda’s capital.