MJAAR

The Role Of Micro Finance Interventions On Poverty Reduction In Mukono District: A Case Study Of Goma Lc1 Zone, Mukono Town

Kabeije Immeldah, Zikusooka Enock


Abstract

This study investigated the role of microfinance interventions on poverty reduction in Goma LC1 Zone, Mukono Town, Mukono District, Uganda. Specifically, it examined the effects of microcredit, microsavings, and microinsurance on the living standards of low-income households within the study area. A cross-sectional research design was adopted, combining both quantitative and qualitative approaches. A sample of 120 respondents was purposively and randomly selected from microfinance beneficiaries in the zone. Data were collected using structured questionnaires and key informant interviews. Descriptive, correlation, and regression analyses were conducted using SPSS version 26. Findings revealed that microcredit significantly improved household income, asset accumulation, and business expansion among beneficiaries. Microsavings encouraged financial discipline and provided a safety net during economic shocks. Microinsurance reduced vulnerability to health-related poverty risks. The regression model showed that microfinance interventions collectively explained 68.4% of the variance in poverty reduction outcomes (R² = 0.684, F = 42.71, p < 0.001). The study concluded that microfinance is a potent tool for poverty alleviation when complemented by financial literacy training and regulatory oversight. The study recommended strengthening microfinance institutions, integrating non-financial services, and improving targeting mechanisms to maximise outreach among the ultra-poor.

Keywords

Microfinance Microcredit Microsavings Microinsurance Poverty Reduction Mukono District
Metropolitan Journal of Academic and Applied Research

Cite This Article

Kabeije Immeldah & Zikusooka Enock (2026). The Role Of Micro Finance Interventions On Poverty Reduction In Mukono District: A Case Study Of Goma Lc1 Zone, Mukono Town. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=644

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