Faculty of Business Administration and Management

The impact of outreach on the sustainability of government and donor supported microfinance institutions (MFIs) in Uganda

2026-03-10T07:09:13Z

The impact of outreach on the sustainability of government and donor supported microfinance institutions (MFIs) in Uganda Agaba, Edward Interest in microfinance has soared in the recent decade and the instrument is now seen as one of the most promising tools to tackle poverty in the developing world. The fascination with microfinance derives from the fact that the provision of financial services can contribute to poverty reduction and pass the test of sustainability at the same time. This would imply that MFIs can continue to lend, without recourse to subsidized funds (i.e. be sustainable), to more poor people (i.e. increase outreach). For donors / government, microfinance is especially attractive as it can be delivered in an institutional and financially sustainable manner that permits them to withdraw after making relatively modest investments. Expanding access to financial services for the poor is a goal that has frustrated development practitioners both support and retail financial organizations for decades. The distressing legacy of subsidized and direct credit has created many skeptics. In Uganda, most government directed credit programs targeting small farmers and other priority groups have previously failed or produced mixed results as those programs could not be sustained. It is from this background that the study was conceived to establish whether or not increasing outreach in terms of numbers of loan clients had an impact on the sustainability of donor and government supported MFIs. The study examined 38 MFIs that deliver financial services in different parts of Uganda. The sample was drawn to ensure a range in geographical setting. institutional type, and level of clientele. The study assessed the performance of these MFIs by considering the impact of outreach, ability to reach large numbers of people) and sustainability, (the ability to operate at a level of profitability that allows sustained service delivery with minimum or no dependence on donor inputs). This impact was assessed using econometric methodology. The study established that outreach had an insignificant positive impact on the operational sustainability. Similarly, the study found out that the amount of subsidized funding outstanding had a positive but also insignificant effect on sustainability. Average loan size was found to have a negative but insignificant impact on operational self sufficiency. In fact, average loan size and outreach were the most insignificant in the model. Total expenses (Texp) and Total operating income were found to be the most significant factors influencing the sustainability of the MFIs under study. This effect was found to be significant basing on the t-statistic and probability values. Therefore, good practice MFIs should expand their outreach based on market projections and indicators of viable economic activity among potential clients in new areas. This is because; the study confirmed that sustainability is all about full cost recovery. That is, if MFIs are to be sustainable, they must earn adequate operating income to cover their operational expenses. Wokadala James

Factors affecting performance of rural electrification programme in Uganda

2025-06-16T10:14:54Z

Factors affecting performance of rural electrification programme in Uganda Niwagira, Andrew The study was conducted to examine the factors affecting performance of rural electrification programme in Uganda with Rukungiri district as a case study. The factors studied included Rural housing characteristics, household size, Household income level, connection costs/charges and price of electricity with the sole purpose of determining their impact on performance of rural electrification programme. A cross sectional research design was adapted whereby a total sample of 113 respondents with electricity and 54 respondents were selected for quantitative data using systematic random sampling and purposive sampling respectively. 29 key informants were also selected for qualitative data using purposive sampling. The primary data was collected using structured and semi-structured questionnaire and interview guides as well as secondary data from reports. Data collected was analysed using Stata. The study found out that performance of rural electrification programme was significantly and negatively affected by household size (β2= -0.6339819; P=0.0000<0.05) and connection costs (β4= -0.2147675; P=0.037<0.05); price of electricity also having a positive significant impact (β5=0.6292673; P=0.0000<0.05) while rural housing characteristics and household income level had a positive insignificant impact on performance of rural electrification programme with (β1=0.1121203; P=0.059>0.05) and (β3=0.0616083; P=0.085>0.05) respectively. The model specified exhibits R2 = 0.6918 implying that factors under this study explain up to 69.18% of the variations in performance of rural electrification programme which reflects that the variables and data used were fit for this study. The study recommends government to provide Incentives to recover the costs by permitting projects below 3 MW to operate with minimal government regulation such that investors can charge realistic tariffs that cover operating costs and yield a return on investment but consistently conducting studies into the trends of household incomes and peoples’ perception on the existing price levels to mitigate the risk of power companies misusing incentives to charge exorbitant prices for abnormal profitability; Develop a mode of payment for electricity connection where by households pay in installments or make the period of electricity connection payment longer for example six months or even one year; Roll out the use of pre paid meters and subsidize the price of these electricity meters by reducing taxes on companies importing them to reduce upfront connection costs; Prioritise development strategies that increase income generations among households and at the same time promote rural electrification; population control measures like family planning, girl child education and make use of population control policies Twinomuhwezi Ivan

Internal audit and revenue management in local governments

2025-05-29T02:25:13Z

Internal audit and revenue management in local governments Ochieng, George David The purpose of the study was to investigate the relationship between Internal Audit and Revenue Management in local governments. The study specifically examined: adequacy and effectiveness of Internal Audit function, the effectiveness of Revenue Management and the Relationship between Internal Audit and Revenue Management in Nagongera Town Council. The study used a case study design and self-administered questionnaires were used for data collection. The study established that Internal audit is adequate and effective in Nagongera town council as shown in table 4.18 represented by the mean and standard deviation of 3.2917 and 1.23699 respectively. It also revealed that there is effectiveness in revenue management since there is Proper Financial management revealed in table 4.34 with a mean and standard deviations of 3.0417 and 1.47256 respectively. The study established that Internal Audit has a positive significant Relationship with Revenue Management (r=0.621, p<0.05; ( =0.621, p<0.05). Internal audit significantly affects revenue management (F=149.754, P=0.000). This means that internal audit is a significant determinant of revenue management. The standardized beta coefficient of ( =0.621, p<0.05) meaning that internal audit has a positive and significant relationship with revenue management. The study concluded that Revenue Management in Nagongera Town Council improved with better internal auditing practices. The study also revealed that there is proper financial management in the town council. The study recommends that; seminars, workshops and forums should be organized by the management to educate and sensitize staff members especially those from finance and auditing on how to handle and manage public revenue effectively. There should be improved supervision of town council funds to ensure that they are channeled in a proper direction, usage and well appropriated. There is need to put up procedures and rules governing the usage of the assets both during their service and at their disposal. Oguti Etengu Robert

Accountability, internal controls and service delivery

2025-05-29T02:25:11Z

Accountability, internal controls and service delivery Ocen, Simon The research study was done on accountability, internal controls and service delivery, the study was further guided by the following objectives. To establish the relationship between internal controls and service delivery in Katakwi District Local Government, to examine the effect of accountability on service delivery in Katakwi District Local Government, to examine the nature of relationship between control activities and service delivery in Katakwi District Local Government. The researcher used a cross-sectional survey design to draw the samples; furthermore methodological triangulation was used to help the researcher to obtain variety of information on the variables and the strength of each method which was used to overcome the deficiencies of the other and also to achieve a higher degree of validity of variables. The researcher also used close ended questionnaires to collect the data, certain characters were also observed. The study made the following findings: the highest number of respondents as those who had qualifications in ATC with 25 (33.8%), there was a closely moderate positive and statistically significant correlation between internal control and service delivery of 0.431, service delivery was explained by 18.6% of the changes in the independent variable internal controls, a 100% change in internal control systems was shown to lead to a subsequent variation in the dependent variable service delivery by 43.1%, furthermore accountability explained 10.9% of the variations in the dependent variable service delivery, a 100% change in accountability would lead to a probable variation in the dependent variable service delivery by 33%, there was a closely moderate and positive correlation between control activities and service delivery of (r) which is 0.348. as seen above all the independent variables targeted had an effect and relationship on the dependent variable service delivery The study concluded that all departments at the district had standard operating procedures and that there was a positive relationship between internal control and service delivery, furthermore the research concluded that poor accountability practices will affect service delivery and if all the issues under accountability and internal control are addressed then service delivery will improve, lastly the study concluded that the control activities were at the focal point of service delivery since they constituted the operational area of internal controls and if they are well handled services will improve accordingly. The following recommendations were made from the study findings; there is need for establishment of a work relation strategy aimed at improving the staff relationship at work, The research recommends that the key stakeholders in the field of accounting at the district urgently need to lay strategies aimed at improving the implementation procedure of the internal control measures at the district and lastly there should be more control activities integrated in the internal control systems. Kuka Phinehas; Kuka Phinehas