Hajji Hassan Basajjabalaba while appearing before COSASE on 23rd September 2026
By Johannah Nantongo
Businessman Hassan Basajjabalaba has told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that he is seeking compensation from Government following the cancellation of a deal to redevelop Kampala’s City Square.
Basajjabalaba told the committee that his company was awarded the redevelopment tender in 2001 and paid Shs1.635 billion to the then Kampala City Council (KCC) as a premium.
He said the proposed project was designed to retain the green space at the top of the 2.5-acre site, while commercial facilities would be developed underneath.
According to Basajjabalaba, the agreement provided for an initial five-year lease beginning in 2002, with an option for an additional 49 years.
He said the arrangement was later cancelled, making the City Square project part of the compensation claims he has pursued against Government over several terminated market and property deals.
Basajjabalaba said he was surprised by a recent letter from President Museveni directing that a study be undertaken on a proposal to develop the City Square land.
He questioned the possibility of another developer being granted rights over the same property while his compensation claim remains unresolved.
“I was also shocked to see the President’s letter asking for a study on the proposal to develop City Square land,” Basajjabalaba told the committee.
He said he was waiting to see whether the Government would allocate the property to another developer despite his existing claim.
COSASE Chairperson Muwada Nkunyingi questioned Basajjabalaba about the circumstances under which his company acquired an interest in the City Square land.
Basajjabalaba maintained that his company had lawfully secured the redevelopment deal and paid the required premium to KCC.
He further warned that he would challenge any decision by Government to grant the property to another developer before his outstanding claim is resolved.