As debate rages over the proposed allocation of City Square [Constitutional Square] to a private developer, businessman Hassan Basajjabalaba has laid claim to the space, telling MPs that he is pursuing compensation from government following the cancellation of his company's agreement to redevelop the 2.5-acre property located in the middle of Kampala.
Basajjabalaba told the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) on Wednesday, 29 September 2026, that in 2001, his company, HABA Group, won the tender to redevelop the City Square and paid the then Kampala City Council (KCC) a premium for the project.
The Committee on COSASE is chaired by Hon. Muwada Nkunyingi.
“KCC advertised the square for redevelopment and we did the bidding and we were the winners. So we paid Shs1.6 billion as premium and I will give you the receipt, the offer letter and everything and you will check,” he said.
Basajjabalaba said the proposed redevelopment would have preserved the green space above the square, with commercial activities developed below. The arrangement provided for a five-year lease from 2002, with an option for a further 49 years.
Basajjabalaba said the deal was subsequently halted, forming part of his wider compensation claims against government over cancelled market and property arrangements.
He said he was also shocked to see a letter from the President asking for a study on the possibility of developing the City Square land.
“As for now, I am waiting to see if one property will be given to two people,” he said.
The committee is investigating a Shs140 billion Bank of Uganda (BOU) guarantee to HABA Group of Companies, arising from government’s decision to take over the management of public markets and Kampala City Square.
In his introductory remarks, Nkunyingi told the meeting that BOU was demanding Shs140 billion from Basajjabalaba.
However, Basajjabalaba told the committee that the Shs140 billion guarantee was not fully paid to him and his companies, putting the total guarantees issued to commercial banks at Shs168.8 billion, of which he said Shs87.4 billion remains outstanding.
Basajjabalaba said his involvement in Kampala’s markets dates back to 2001 and 2002, when his companies successfully bid to manage and redevelop several markets, including Owino, Nakasero, Shauri Yako and Nakawa.
Hon. Hakim Kizza (NUP, Bukoto County South) said he was shocked to learn that City Square already had an interested party despite presidential guidance asking KCCA to study possibilities for developing the area.
“What is the exact area you own in City Square? Is the President giving out empty space?” he asked.
Kizza also questioned why Basajjabalaba appeared to have secured several government contracts.
“You are so lucky, Basajjabalaba, because you always get these contracts. I do not know how you get these opportunities, but you said all the subleases were reclaimed. Why is it that you claim the abattoir still belongs to you?” he asked.
Hon. Martin Muzaale (NRM, Buzaaya County) questioned why Basajjabalaba was demanding money from BOU, which only acted as a guarantor.
“Who was HABA Group dealing with for BoU to come in as a guarantor?” he asked.
Basajjabalaba told the committee that his outstanding balance of Shs63.2 billion should be paid and that his interest in City Square should be considered, after which he would surrender properties including the Nakasero Market sublease and his interest in City Square.
He said another option would be for government to return the properties he had leased from it, with him refunding the money paid.
“Take your sublease, then I refund. I am ready for that,” he said.
He added that Government could also take part of the properties based on their value, allowing him to surrender what he said did not belong to him.
Nkunyingi asked the HABA Group team to provide all documents relating to the compensation being sought. He also said the committee would have to meet with the Ministry of Finance, Bank of Uganda and Basajjabalaba before reaching a conclusion.
