The cabinet has reversed a proposal to redevelop Kampala’s Constitutional Square into a commercial complex featuring a hotel and shopping mall, opting to preserve the site’s existing legal status as a protected heritage area.
The decision was announced by the Minister of ICT and National Guidance, Justine Kasule Lumumba, who said Cabinet had considered the square’s historical significance, legal protection, and the environmental and urban planning implications of the proposed development.
“Cabinet has decided to reverse the proposal for the development of City Square, formally known as Constitutional Square, and retain the site’s existing legal status,” Kasule Lumumba said in a statement.
She said the decision followed consideration of the site’s history, its legal protection and the issues raised by the proposal.
Constitutional Square, located in the heart of Kampala’s central business district, is a protected heritage site covering approximately 1.172 hectares, comprising plots 5, 6, and 7. It also contains the 1945 War Memorial, which commemorates Ugandan soldiers who lost their lives during the First and Second World Wars.
“The Square and its memorial are part of our national history. Decisions about the site must respect that history and its protected status,” Kasule Lumumba said.
She emphasised that the government’s position was clear, adding that the development proposal had been reversed and the square would retain its existing legal status.
“The public should therefore be clear: Cabinet has reversed the development proposal. Constitutional Square will retain its existing legal status,” she said.
The decision follows months of debate over a proposal by businessman Hassan Bulwadda to transform approximately two acres of the public space into a modern commercial complex featuring a hotel, shopping mall and other facilities, with solar energy incorporated into the development.
Bulwadda presented the proposal to President Yoweri Museveni in a letter dated August 18, 2026, seeking support for the redevelopment of the site. On August 30, Museveni directed the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to study the proposal, consult the Kampala Capital City Authority (KCCA) and report back to him.
In his letter, Museveni said he had received a proposal to develop the land into a modern, environmentally friendly real estate complex.
“I have received a letter from Hajj Hassan Bulwadda dated August 18, 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.
He then instructed Kabanda,“Study the proposal, discuss with Kampala Capital City Authority and come back to me.”
The directive triggered public debate over the future of the square, with questions raised about the preservation of public land, Kampala’s diminishing green spaces and the protection of historical monuments. The President’s instruction was for the proposal to be examined and did not, by itself, amount to final approval of the development.
Kampala Lord Mayor Ronald Balimwezo opposed the proposed redevelopment, arguing that the square should remain open because of its environmental, recreational, and historical importance. He also pointed to the site’s protection dating back to 2007.
“City Square must be left open. It is the City Square that helps us breathe, take in the air. It must not be played with, that is our take,” Balimwezo said.
The matter also reached Parliament on September 30, when Leader of the Opposition Joel Ssenyonyi questioned why legislators had not been involved in discussions about the future of the public space. He argued that Kampala needed to preserve its green spaces rather than undertake developments that could reduce them.
State Minister for Trade, Industry and Cooperatives David Bahati told Parliament that the President’s letter had been referred to the relevant ministers for review and advice, indicating that the proposal was still under consideration.
The debate also revived a separate dispute involving businessman Hassan Basajjabalaba, who told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises in September that his company, HABA Group, had won a tender to redevelop the square in 2001 and paid the then Kampala City Council Shs1.6 billion.
Basajjabalaba said he was pursuing compensation following the cancellation of the arrangement. However, the claim has been contested, with Attorney General Sam Mayanja arguing that the earlier lease offer had been rescinded.
In announcing Cabinet’s decision, Kasule Lumumba said the square’s protection dates back to 2007 and is recognised under the Museums and Monuments Act, 2023, and a heritage protection instrument issued in 2024.
The Cabinet position places the emphasis on preserving the site’s historical and legal status rather than proceeding with the proposed commercial complex.
With the 1945 War Memorial standing within the grounds, Constitutional Square remains an important public space for commemorating Ugandan soldiers who died in the two world wars.
The reversal means the proposed hotel and shopping mall will not proceed under the plan considered by Cabinet, while the square retains its existing status as a protected heritage site.
