The government has reversed plans to redevelop Kampala’s historic Constitution Square into a modern commercial complex featuring a hotel and shopping mall, bringing an abrupt halt to a controversial proposal that had received President Yoweri Museveni’s backing.
In a statement published on Tuesday, October 27, 2026, Minister Justine Lumumba announced that Cabinet had decided to abandon the proposed development and retain the site’s existing legal status.
“Cabinet has decided to reverse the proposal for the development of City Square, formally known as Constitution Square, and retain the site’s existing legal status,” Lumumba said.
She explained that the decision followed Cabinet’s consideration of the site’s history, its legal protection and environmental and urban planning concerns raised by the proposed commercial development.
The announcement marks a major reversal for a project that had triggered a heated debate over the future of one of Kampala’s most prominent public spaces, pitting plans for commercial investment against heritage conservation and the protection of public green spaces.
“The public should therefore be clear: Cabinet has reversed the development proposal. Constitution Square will retain its existing legal status,” Lumumba added.
Heritage protection blocks redevelopment plan
In explaining Cabinet’s decision, Lumumba said Constitution Square has been a protected heritage site since 2007, with its protection recognised under the Museums and Monuments Act, 2023, and a heritage protection instrument issued in 2024.
The protected area covers approximately 1.172 hectares, comprising plots 5, 6 and 7 in central Kampala.
The site also contains the 1945 War Memorial, erected in remembrance of Ugandan soldiers who lost their lives during the First and Second World Wars.
Lumumba said the square and its memorial form part of Uganda’s national history and that decisions affecting the site must respect its historical significance and protected status.
The Cabinet decision effectively places heritage conservation ahead of the proposed commercial redevelopment, at least under the current proposal.
The government has not, in the announcement, provided details of any alternative plans for the square or indicated whether a different proposal could be considered in the future.
Museveni had backed hotel and shopping mall proposal
The government’s reversal comes weeks after Museveni directed the Minister for Kampala Capital City and Metropolitan Affairs, Minsa Kabanda, to examine a proposal by businessman Hassan Bulwadda to transform the square into a modern commercial complex.
In a letter dated August 30, 2026, the President instructed Kabanda to study the proposal, consult the Kampala Capital City Authority (KCCA) and report back to him.
The proposed development was expected to feature commercial retail space, hotel accommodation, parking facilities, landscaped areas and solar-powered infrastructure.
Supporters argued that the project could modernise Kampala’s central business district, attract investment and create employment while improving the appearance of the city centre.
However, the proposal attracted resistance from political leaders and heritage advocates who warned that commercial construction could undermine the square’s historical importance and deprive the public of an important open space.
Cabinet’s latest decision now overturns the proposed development, although the government has not publicly detailed the precise administrative steps required to formally close the process.
Basajjabalaba’s claims added to City Square controversy
The redevelopment debate also unfolded against the backdrop of a separate dispute involving businessman Hassan Basajjabalaba, who has claimed that his company acquired rights to redevelop the property under an arrangement dating back to 2001.
Basajjabalaba has argued that his company, HABA Group, secured a tender and paid approximately Shs1.6 billion to the then Kampala City Council in connection with the proposed redevelopment.
Attorney General Kiwanuka Kiryowa’s predecessor in the dispute, Sam Mayanja, had publicly challenged Basajjabalaba’s position, arguing that the lease offer had been cancelled and that the businessman did not retain ownership rights over the public property.
The competing claims have complicated an already contentious debate over who should control the future of the prime city-centre land.
Cabinet’s announcement, however, focuses on reversing the development proposal and preserving Constitution Square’s existing legal status. It does not, by itself, resolve every outstanding question concerning historical contractual claims or potential compensation disputes.
What happens next?
The decision is a significant setback for the proposed commercial project and a victory for those who have argued that Constitution Square should remain protected because of its historical, environmental and public significance.
The square’s 1945 War Memorial commemorates Ugandan soldiers who died in the two world wars, giving the site importance beyond its commercial value.
By retaining the existing legal status, Cabinet has reaffirmed the importance of protecting the site under Uganda’s heritage framework.
The immediate question is whether the government will maintain the square exclusively under its existing protected status or pursue other improvements compatible with heritage conservation.
For now, Lumumba’s announcement leaves little ambiguity about the fate of the current proposal: the hotel and shopping mall development has been reversed, and Constitution Square is to retain its existing legal status.
