A section of the House sitting on Wednesday, September30, 2026

By Sulaiman Kauki

KAMPALA — Government is reviewing a proposal concerning the future of the prime Kampala City Square land, State Minister for Trade, Industry and Cooperatives (Industry) David Bahati has told Parliament.

Bahati said a letter from President Yoweri Museveni on the matter was an internal communication that had been forwarded to the relevant ministers for consideration and advice.

“The letter asked the Ministers to study the proposal and give advice, and the proposal is indeed being studied. So, there is no cause for alarm,” Bahati said.

The development comes as businessman Hassan Basajjabalaba continues to pursue compensation from government over the cancellation of an earlier agreement involving the same property.

Appearing before the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on September 23, 2026, Basajjabalaba said his company, HABA Group, won a tender in 2001 to redevelop City Square.

He told the committee that the company paid the then Kampala City Council (KCC) about Shs1.6 billion as a premium under the redevelopment arrangement.

Basajjabalaba said the proposed development was designed in a way that would have retained the green space above the square.

The businessman has since sought compensation from government following the cancellation of the agreement, with the matter now forming part of discussions over the future of the strategically located property.

The latest proposal has prompted renewed interest in the ownership, development and intended use of the City Square land as government considers its options.