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- Create Date January 31, 2025
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Relationship Between Group Savings and Poverty Reduction in Uganda: A Case Study of Savings Group in Rukiga District, Uganda
In Uganda, the Kigezi Region in particular people traditionally participate in informal savings groups which
started long time ago operating as funeral insurance associations commonly known “Bataka kwezika”. These
groups according comprise of 10-20 members in a village saving together in a group fund to cater for funeral
expenses in case one of the members died or lost a family member. This study establishes the relationship
between group savings and poverty reduction. The study employed descriptive design with qualitative and
quantitative methods. The study used community residents in Rukiga District, Uganda. The study found that the
relationship between group savings and poverty reduction revealed a correlation coefficient of 0.818**,
significant at 0.01 level of a two tailed test with 132 degrees of freedom. Hence, the study findings imply that
there is a very high positive significant relationship between group savings and poverty reduction. The study
concluded that village savings and loan association was important, there was a poor management skills used in
group savings; and that there is a very high positive significant relationship between group savings and poverty
reduction. Finally, the study recommended that the government should intervene by providing support to group
saving groups by giving them loans in order to enable them save much which will bring more income to the local
people, there should be use of proper management skill especially by using people who are skilled in group
savings in order to enable proper management of people’s funds accordingly; and group savings should cooperate
especially the entire members in planning well on how to a chive proper performance in their savings.