The NBC Premier League outfit's decision to register the attacker, according to its officials, aimed at strengthening its attacking force.
Kiiza had successful professional stints at Premier League's big guns, Simba SC and Yanga, before heading elsewhere.
Kagera Sugar's information officer, Hamisi Mzanzara, noted: "We have made a good signing that we believe will get us out of lower position in the Premier League.''
Mzanzara insisted the outfit's supporters should be confident it will start notching good results in upcoming matches.
The official noted: ''Our team had started badly, the coach though has seen our team's weaknesses and has recommended registration according to the team's needs.''
He stated: ''We can expect major changes in our squad because we have as well roped in a striker, Fred Cosmas, who has started training with the team.''
''We are continuing to work hard... our team's supporters should not give up. ''
''We are going to fight to ensure we get good results in our assignments.''
Kiiza had been a free agent after featuring for Uganda’s Second Division League outfit, Proline.
The attacker returns to Tanzania following two earlier spells in the country with Yanga (2011-2015) and Simba SC (2015-2016).
The former Uganda player of the year 2011 has also previously featured at Kooki Ssaza, Nalubaale, Uganda Revenue Authority (URA) FC, Free State Stars (South Africa), Al Hilal El Obeid (Sudan), Fassil Kenema (Ethiopia), Vipers SC, and lately Proline.
Kagera Sugar now languishes at the bottom of the Premier League's standing with 10 points from 11 matches played.