Makerere University Business School (MUBS) was established by Makerere University (Establishment of Constituent College) order 1997 as a constituent college of Makerere University. The School was created from a merger between the Faculty of Commerce (FoC) and the National College of Business Studies (NCBS). The merger involved the physical movement of the Faculty of Commerce from the Makerere Campus to Nakawa where the NCBS was located. The actual merger and movement took place in January 1998.
In the year 2000, the law was amended to give financial and administrative autonomy by the Makerere University (Establishment of constituent college) (Amendment) order (MUECCA (A) 2001. As a result of this amendment, the School structure changed tremendously. The law created a Council with authority similar to that of Makerere University Council.
The year 2001, the structure of the School again changed with the enactment of the University and other Tertiary Institutions Act, which made the School transform from a constituent College of Makerere to a public tertiary institution affiliated to Makerere University.