Cabinet has reversed a proposal to redevelop City Square, formerly known as Constitutional Square, in Kampala, and resolved to retain the site’s existing legal status.

Minister of ICT and National Guidance Justine Kasule Lumumba announced the decision on Tuesday, October 27, 2026, following a Cabinet meeting chaired by President Yoweri Museveni on Monday.

According to Lumumba, Cabinet considered the site’s history, legal protection, and the environmental and urban planning issues raised by the proposal before reaching its decision.

The proposal was submitted by businessman Hassan Bulwadda, who sought to develop approximately two acres of City Square into a commercial complex featuring a hotel, shopping mall and solar-powered facilities.

In a letter dated August 18, Bulwadda presented the proposal to Museveni. On August 30, the President directed the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to examine the proposal in consultation with Kampala Capital City Authority (KCCA) and report back.

The proposal subsequently underwent review by government officials, with the assessment covering issues relating to land, legal protection, urban planning and city administration.

Cabinet has now reversed the development proposal, with Lumumba confirming that Constitutional Square will retain its existing legal status.

Constitutional Square is a protected heritage site covering approximately 1.172 hectares and comprising plots 5, 6 and 7. The site contains the 1945 War Memorial, which commemorates Ugandan soldiers who lost their lives during the First and Second World Wars.

Lumumba said the site’s protection dates back to 2007 and is recognised under the Museums and Monuments Act, 2023, and a heritage protection instrument issued in 2024.

She said the square and its memorial form part of Uganda’s national history and that decisions concerning the site must respect its historical significance and protected status.

The proposed redevelopment had generated public debate about the future of the city-centre public space and the implications of introducing commercial facilities at the site.

Kampala Lord Mayor Ronald Balimwezo and Leader of the Opposition in Parliament Joel Ssenyonyi were among those who raised concerns about the proposal, including the importance of preserving public open spaces in the capital.

The development proposal also brought renewed attention to a separate dispute involving businessman Hassan Basajjabalaba and his company, HABA Group.

During proceedings before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) in September 2026, Basajjabalaba said his company had secured a redevelopment tender in 2001 and held rights under a 49-year sublease.

The claim relates to an earlier arrangement concerning the site and is separate from Bulwadda’s 2026 development proposal. 

In announcing the Cabinet decision, Lumumba reiterated that the site’s historical significance and protected status must be respected.