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On 23rd February 1993, Busoga College Mwiris Board of Governors, under the leadership of Bishop Cyprian K. Bamwoze passed a resolution to establish a university on the same hill and requested Busoga Diocesan Council and the House of Bishops to become the foundation body of the
anticipated university.

19th November 1994, a University Formation Task Force (UFTF) was appointed to map out the process of establishing BU and on 21st April 1995, it presented its report to the Bishop. On 6th May 1995, the Bishop inaugurated BU in the presence of His Royal Highness the Kyabazinga of Busoga, Henry Wako Muloki. Soon after, Busoga Diocese surrendered its Iganga land and buildings of Bishop Hannington Theological College to BU, and on 30th July, BU received its interim license. On 12th February 1999, BU opened its gates to students.
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