This qualitative study aimed at examining the role of poverty on school dropout among students in Kangulumira town council Kayunga district through examining the causes of school dropout, the impact of social and economic factors on school dropout and establishing strategies to reduce school’s dropout among secondary schools in Kangulumira town council, Kayunga District. The study adopted a qualitative and quantitative survey design and it was guided by two theories namely Appadurai Theory and Label Poverty Theory with a population of 99 respondents who were selected and positively participated in the study of which 40 were teacher, 40 students and 19 were parents amongst some selected secondary schools from Kangulumira town council Kayunga district. the study found out that school dropout is caused by students themselves, poor school rules and regulations, poor teacher and students’ attitude, religious and cultural beliefs however it was also revealed that social and economic factors of the family has a strong relationship to school dropout. The study also revealed that 91 (92%) agreed that parents’ decision do affect children retention in school however 8 (8%) disagreed with the factor. With respect to children of more educated parents are more likely to be enrolled 78 (78.8%) of the respondents agreed with the statement while 21 (21.2%) disagreed with the statement. With respect to once married, girls become part of another family and most likely to get pregnant or married before completing their schooling, 72 (73%) of the respondents agreed with the statement, 4 (4%) were not sure however, 23 (23%) disagreed with the statement. However, the study registered the strategies that could be put in place in place to reduce school dropout among which parents should develop positive attitude towards helping their children, the government to increase and provide more support to universal secondary schools and school to reaccept dropout students to learn again. The study furthermore made some recommendations to the government, schools and parents so as to improve students ‘academic outcome and control school dropouts.