The Effect of Economic Empowerment on Household Income in Uganda: A Case of Kabale Municipality

Abstract

The study examined the effect of economic empowerment on household income in Uganda: A case of Kabale Municipality. The study was motivated by the persistent challenge of low household incomes despite the implementation of various economic empowerment initiatives such as the Parish Development Model (PDM), Emyooga, Savings and Credit Cooperative Organizations (SACCOs), and entrepreneurship development programs. Specifically, the study assessed the influence of access to credit, financial literacy, entrepreneurship development, and savings and investment practices on household income. A descriptive cross-sectional survey design employing both quantitative and qualitative approaches was adopted. Data were collected from household heads and key stakeholders involved in economic empowerment programs using questionnaires, interviews, and documentary review. Quantitative data were analysed using descriptive and inferential statistics, while qualitative data were analysed through thematic analysis. The findings revealed that economic empowerment significantly and positively influences household income in Kabale Municipality. Access to credit enhanced investment in income-generating activities, financial literacy improved household financial management and decision-making, entrepreneurship development increased employment and business opportunities, while savings and investment practices contributed to income growth and financial stability. Correlation and regression analyses indicated a strong positive relationship between economic empowerment and household income. The study concluded that households participating in economic empowerment initiatives were more likely to experience higher income levels, improved welfare, and greater economic resilience than households with limited access to empowerment opportunities. The study recommends strengthening access to affordable credit, expanding entrepreneurship and financial literacy programs, and supporting community savings and investment groups to enhance household income and sustainable livelihoods. The findings provide valuable insights for policymakers, local governments, development partners, and community organizations seeking to improve household welfare through economic empowerment interventions.