The Tanzanian military quickly regrouped, causing the UA to retreat back into Uganda even as President Amin declared Kagera's annexation. The Tanzanians launched a large counter-offensive, and the Ugandan military soon started to disintegrate under the onslaught. By the time the Ugandan border town Mutukula fell to the Tanzanian army in January 1979, Butabika was back in Kampala and prepared the celebrations for the 8th anniversary of Amin's rule. The lieutenant colonel took part in a parade at Kololo on 25 January, where he and other high-ranking commanders performed a traditional Nubian dance. One Ugandan later commented that when he saw the dancing officers on live television, he realised that his country's leadership "did not know what exactly was going on" in regard to the war. Butabika died in combat during the later stages of the war, though it is disputed when and where he was killed. According to an article by the Ugandan newspaper "Daily Monitor", he died during the Fall of Kampala. On 10 April 1979, the Tanzanian forces and their UNLF allies entered the city, encountering only light resistance. Butabika was reportedly one of the few leading Ugandan commanders who stayed in the city, and was killed in a firefight with Tanzanian soldiers of the 205th and 208th Brigades in the Bwaise-Kawempe area as they attempted to secure the northern section of the city on 11 April. In contrast, Tanzanian journalist Baldwin Mzirai wrote in his 1980 account of the war, "Kuzama kwa Idi Amin", that Butabika was killed at a Tanzanian roadblock on the Bombo road on 7 April 1979.