Government has said no final decision has been made on a proposal to redevelop Kampala’s City Square into a modern commercial and business complex.
The clarification was made in Parliament on Wednesday after Leader of the Opposition Joel Ssenyonyi raised concerns about the possible loss of one of the capital’s remaining green spaces.
Ssenyonyi questioned a proposal to develop a solar-powered, environmentally friendly commercial complex at City Square and asked why Parliament had not been involved in discussions about the project.
His concerns followed a directive issued by President Yoweri Museveni on 30 August 2026, instructing the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to assess a proposal submitted by businessman Hassan Bulwadda for the redevelopment of the square.
The President also directed the minister to consult the Kampala Capital City Authority (KCCA) before reporting back.
However, State Minister for Trade, Industry and Cooperatives David Bahati told Parliament that the presidential directive did not amount to approval of the redevelopment project.
Bahati said the directive was an internal instruction for the relevant authorities to study the proposal and advise the President on its feasibility.
He said the proposal is still being reviewed and that no final decision has been taken on whether the redevelopment will go ahead.
The City Square proposal has also emerged amid a separate dispute involving businessman Hassan Basajjabalaba, who claims rights over the same property.
On 23 September, Basajjabalaba told the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises that his company, HABA Group, was awarded a tender in 2001 to redevelop City Square.
He said the company paid the then Kampala City Council Shs1.6 billion as a premium before the agreement was later cancelled.
Basajjabalaba told the committee that he is seeking compensation from government over the cancelled agreement. He also maintained that his proposed redevelopment would have retained the green space above the square.
