Museveni backs down from City Square land giveaway

President Yoweri Museveni has reversed plans to hand over part of Kampala's Constitutional Square to businessman Hassan Bulwadda for the construction of a hotel, shopping mall and other commercial facilities.

The decision followed a Cabinet meeting chaired by Museveni at State House, Entebbe, on Monday, October 26, 2026.

ICT and National Guidance minister Justine Kasule Lumumba announced the decision on Tuesday, October 27, saying the government had resolved to preserve the square's historical and legal status.

"Government has decided to reverse the proposal to develop City Square, formerly known as Constitutional Square and retain the site's existing legal status," Lumumba said.

She explained that Cabinet considered the site's historical importance, legal protection, environmental concerns and urban planning implications before rejecting the proposed development.

Museveni has in August instructed Kampala Capital City and Metropolitan Affairs minister Minsa Kabanda to examine a proposal submitted by businessman Hassan Bulwadda.

Bulwadda had written to the President on August 18, 2026, seeking to develop two acres at City Square into a modern, solar-powered commercial complex.

His proposal included a hotel, shopping mall and other business facilities.

"I have received a letter from Hajj Hassan Bulwadda dated the 18th of August, 2026, proposing to develop the two acres at City Square in Kampala into a modern, eco-friendly real-estate complex, with a hotel, shopping mall, etc, using solar-power, etc," Museveni wrote.

The President directed Kabanda to consult the Kampala Capital City Authority (KCCA) before returning to him with recommendations.

The proposal raised questions about the future of one of Kampala's most prominent public spaces, particularly its protected heritage status and the implications of converting it into private commercial property.

Lumumba told the press that Cabinet had now settled the matter by rejecting the development proposal.

She explained that Constitutional Square enjoys several layers of legal protection dating back to Uganda's independence.

"Constitutional Square is a protected heritage site. Its protection goes way back in the 1962 constitution and it's also recognised under the Museum and Monuments Act of 2003 and the heritage protection instrument issued in 2004," she said.

The protected area covers approximately 1.172 hectares, comprising plots 5, 6 and 7.

It also houses the 1945 War Memorial, which commemorates Ugandan soldiers who died during the First and Second World Wars.

Lumumba stressed that the square's historical significance must take precedence over commercial development proposals.

"The square and its memorial are part of our national history. Decisions about the site must respect the history and its protected status," she said.

She confirmed that Cabinet reached the decision under Museveni's chairmanship.

"The public is therefore informed clearly that the cabinet has reversed the development proposal," Lumumba said.

The government has also committed to retaining the site's existing legal status, preserving its place as one of Kampala's protected historical landmarks.