Government has clarified that no final decision has been made on a proposal to redevelop Kampala’s City Square into a modern commercial complex, following concerns raised in Parliament over the future of the city’s green space.
The issue was raised by the Leader of the Opposition, Joel Ssenyonyi, during Wednesday’s plenary sitting chaired by Speaker Jacob Oboth. Ssenyonyi questioned the proposal to establish a solar-powered, eco-friendly commercial and business complex at the square.
He expressed concern about the possible loss of one of Kampala’s remaining green spaces and questioned why Parliament had not been involved in discussions on the proposed development.
The concerns followed a directive issued by President Yoweri Museveni on August 30, 2026, asking the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to assess a proposal by businessman Hassan Bulwadda to redevelop City Square.
The Minister was also directed to consult Kampala Capital City Authority and report back to the President.
However, State Minister for Trade, Industry and Cooperatives David Bahati told Parliament that the presidential communication was an internal directive asking relevant ministers to study the proposal and provide advice.
He said the proposal is still under review and that there was therefore no need for concern at this stage.
The redevelopment proposal comes amid a separate claim over the same property by businessman Hassan Basajjabalaba.
Appearing before the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises on September 23, Basajjabalaba said his company, HABA Group, was awarded a tender in 2001 to redevelop City Square and paid the then Kampala City Council Shs1.6 billion as a premium.
He told the committee that he is pursuing compensation from government following the cancellation of the agreement, while maintaining that the proposed redevelopment would have preserved the green space above the square.
