This study is concerned with the challenges of urban planning in Kampala, the capital city of Uganda, in the era of economic globalization. The emergence of the global economy, an important facet of globalization, has radically transformed urban landscapes around the world. It has increased urban populations (Zetter and Hamza, 2004), restructured the political economy of cities through decentralization (Frobel, et. al., 1980), created economic opportunities for some while impoverishing others, and changed the nature of urban development policies around the world. These transformations are exerting new forms of economic, political, and environmental pressures on Kampala's city authority. The study finds that while globalization has brought noticeable economic gains in Uganda, it has also created an ineffective decentralized system that compromised the effectiveness of the urban planning system of Kampala, which led to conflict and confusion over decision making responsibilities throughout all levels of governments including ministries and departments. Consequently, Kampala is growing without planning guidance. How has this come about?