The ministry of health has often explained that its only working with that of defence to upgrade the hospital in Wakiso district.
However, the local leaders in Wakiso district are opposed to the move which they say will greatly affect health service delivery.
The group led by Wakiso district chairman had insisted on staging a peaceful demonstration to draw government’s attention to the matter, but they have been dispersed by police at Leisure park in Kitoro.
Earilier the police commanded by the Regional Police Commander Kampala South Micheal Mugabi advised organisers of a demonstration asking them to postpone the event to a date after November 2.
The police said the protest would clash with National Water and Sewerage Corporation activities to mark 40 years of service.
They have now arrested the leaders of the group who include the Wakiso district Chairman Lwanga Bwanika.
The hospital, which borders State House Entebbe gate, however remains open to the public with business going on normally. Calm is slowly returning to the town.