Segujja, who first became village chairperson at the age of 40 shortly after President Museveni came to power, said he was returning to the race following requests from residents who want him to continue leading the community.
He said his four decades in office had been marked by several developments, including improved access to clean water and better roads within the village.
"During the years I have served, we have managed to achieve a number of developments, including bringing clean water closer to residents and improving the roads in our community," Segujja said.
He said his decision to seek another term was not aimed at holding onto power but preparing the next generation of leaders to take over.
"The residents asked me to return because they appreciate the way I have led them. They believe I should continue serving them," he said.
Segujja said his main focus during the new term would be mentoring young leaders who can eventually succeed him.
"What has brought me back this time is to train leaders who will succeed me. People realised there was no one adequately prepared to take over, so they asked me to return," he said.
He pledged that the next term would be his last, promising to use the period to identify and prepare a successor.
"This will be my last term. By the time I leave office, I hope to have prepared someone to continue the work. I urge residents to elect capable leaders," Segujja said.
However, his decision to contest has drawn criticism from fellow aspirant Mike Kawuki, who said the village needs new leadership after four decades under one chairperson.
"He has led for a very long time. I believe it is now time for him to step aside and give others a chance to lead the village," Kawuki said.
The contest comes ahead of the Local Council I elections scheduled for July 28, which will usher in a new cycle of grassroots leadership across the country.