In a dramatic intervention, the Ugandan government has rescued the Gaddafi National Mosque from auction by approving a UGX14 billion cash bailout, offering major relief to the country’s Muslim community.
Gaddafi Mosque had been under threat due to a legal battle stemming from a botched land transaction involving the Uganda Muslim Supreme Council (UMSC).
The crisis centered on a UGX19 billion debt claimed by businessman Justus Kyabahwa, tied to a failed 2020 land deal. The debt had ballooned due to interest over four years, placing one of Uganda’s most important religious landmarks in jeopardy.
The bailout was announced by MP Agnes Kunihira, Chairperson of the Parliamentary Committee on Gender, Labour, and Social Development, during her presentation of the Ministry’s 2025/26 budget policy.
“The mosque is more than a structure—it represents faith, identity, and unity for Uganda’s Muslim community,losing it would have been unimaginable.”said Kunihira. “
The issue began when UMSC sold a 517-hectare ranch in Sembabule District to Kyabahwa for UGX3.584 billion. The agreement, signed by senior UMSC officials including Mufti Shaban Ramadhan Mubajje, guaranteed land access within 60 days. However, complications arose when an unresolved lease and a subsequent resale to a third party came to light.

Kyabahwa, unable to claim the land, sued UMSC and won. The Commercial Court authorized the auction of the Gaddafi Mosque to recover the debt.
As public outrage grew and the Muslim leadership faced scrutiny, the government stepped in to halt the sale. The crisis has cast a shadow over Mufti Mubajje’s leadership, raising tough questions about accountability and governance within UMSC.

While MPs broadly supported the bailout, many expressed concern over the financial mismanagement that led to the near-loss of the historic mosque.