Tag Archives: Uganda

Operational Budgeting and Procurement Performance among Manufacturing Firms within Jinja Industrial Hub in Uganda (Published)

Ineffective operational budget management negatively affects manufacturing firms’ procurement performance. This paper investigates the impact of operational budgeting on procurement performance among manufacturing firms within the Jinja industrial hub in Uganda. A self-administered research instrument was used to collect the data on the operational budgeting variables of budgeting approaches, budget reviews, budgeting ethics, and expense forecasts. The study adopted a survey-based approach and a stratified simple random sampling technique to collect the data from a sample of 97 manufacturing firms within the Jinja industrial hub in Uganda. The data quality control was ensured by establishing the research instrument’s internal consistency that yielded an overall Cronbach’s reliability coefficient of 0.80. Correlation analysis and regression analysis techniques were applied to analyze the data. The study revealed significant positive correlations (p < 0.01) between all the variables of operational budgeting and procurement performance of manufacturing firms within the Jinja industrial hub in Uganda. The multiple regression analysis results indicated that R2 = 29.5% and Adj.R2 = 25.9%. Furthermore, for the whole multiple regression analysis model F(4,80) = 8.357, p < 0.001, which signified that there was a significant impact of operational budgeting on procurement performance among manufacturing firms within the Jinja industrial hub in Uganda. The authors recommend that manufacturing firms should emphasize organizational goal attainment, practicability, cost reduction, and resource allocation efficiency when choosing budgeting approaches. Additionally, operational budgeting should be prioritized by manufacturing firms the same way as capital budgeting.

Keywords: Jinja industrial hub, Manufacturing Firms, Procurement Performance, Uganda, operational budgeting

Credit Management, Credit Policy and Financial Performance of Commercial Banks in Uganda (Published)

This study was carried out with the purpose of analyzing the effects of credit management on the financial performance of commercial banks in Uganda. Specifically, the study sought to establish whether there is a relationship between credit policy and performance, Capital Adequacy and performance and credit risk control and performance. In achieving the objectives assigned by the study, a causal research design was undertaken and that was facilitated by the use of secondary data which was obtained from published audited financial statements of commercial banks and the BOU annual supervision reports. The study used universal sampling techniques, where all banks licensed and operational in Uganda were selected, multiple regression was used. The findings indicated a significant relationship (r = 0.639) between credit management and the financial performance of commercial banks in Uganda. The coefficient of determination R² was 0;408 meaning that credit management indicators explain up to 40.8% of variations in the financial performance of commercial banks in Uganda. The results from the coefficients summary in the regression model indicate that the significance of coefficients of credit policy (LR), capital adequacy (CAR) and Credit Risk Control (NPL/TL) are -0.031, -0.555 and -1.005 respectively.  It was therefore found that both the CAR and the NPL/TL are significant though have an impact at different significance i.e. capital adequacy and Credit Risk control have a greater impact compared to Credit policy (LR) on the financial performance of commercial banks in Uganda. It was established that there is no significant relationship between credit policy and performance of banks in Uganda, however, a significant relationship between the credit risk control, capital adequacy and the performance of commercial banks was established. It was recommended that should use a moderate credit policy as a stringent credit will undermine the financial performance. Moreover, commercial banks should seek to adequately control their credit risk by keeping lower their ratio of nonperforming loans which is the major determinant of commercial banks’ financial performance as shown in the study. The bank of Uganda should encourage banks in Uganda to use credit metrics model in controlling its risks

Keywords: Commercial Banks, Credit Management, Credit Policy, Financial Performance, Uganda

Corporate Governance and Commercial Banks’ Performance in Uganda (Published)

More than ten commercial banks have collapsed in Uganda in the last two decades due to problems such as frauds, insider lending by dominant shareholders, weak boards of directors, non-performing loans portfolios, and managerial opportunism. This paper aims to investigate the impact of corporate governance on commercial banks’ performance in Uganda. The study adopted a survey-based approach to purposively collect data from the respondents of all licensed commercial banks in Uganda at the time of the study.  Data was collected using a self-administered research instrument on the most emphasized corporate governance variables of board composition, board size, capital adequacy ratio, and the independent audit committee for the performance of banks. The data quality control was ensured by establishing the internal consistency of the research instrument that resulted in an overall Cronbach’s reliability coefficient of 0.78. The data was analyzed using hierarchical multiple regression analysis statistical technique after controlling for bank size and leverage. Using an alpha level of 0.05, the study found that the change in R-squared was 27.9% with a non-significant change in F (4,14) = 1.64, p = 0.219. Secondly, for the whole model F (6,14) = 1.587, p = 0.223 which signified that was no significant impact of corporate governance on commercial banks’ performance in Uganda while controlling for bank size and leverage. In order to improve bank performance in Uganda, the central bank should step up the supervisory and regulatory policies. This would involve proactive strategies such as regular review of corporate governance instruments like the Financial Institutions Corporate Governance Regulations (2005) so as to counteract any new threats to the banking sector which could render these instruments ineffective.

Keywords: Commercial Banks, Corporate Governance, Performance, Uganda

Ethnocentric Tendencies in the Formation of the East African Federation on Uganda (Published)

The study hinged on the investigation of ethnicity and the East African political, social, and economic unity. The study employed a descriptive cross- sectional research design, with qualitative and quantitative approaches. The study used 385 respondents, selected using random and purposive sampling techniques in the study selected areas in Masaka, Katuna, Nimule, Kampala, Malaba and Mutukula. The study discovered that, ethnicity has negatively influenced the formation of the East African political, social and economic unity of Ugandans. The study concluded, that the different and contrasting interpretation of cultures, norms, customs and traditions of the Ugandan people cannot allow the idea of the East African federation to be successful as it is projected in the political, social, and economic spheres on Ugandans. The study recommended for the establishment of a cultural model federation that is widely open politically, socially and economically to all groups of people in the region.

Keywords: East African Federation, Ethnicity, Politics, Socio-Economic, Uganda

Evaluating the Relationship between Service Quality and Customer Satisfaction in Microfinance Institutions in Wakiso District, Uganda (Published)

The paper investigated the relationship between service quality and customer satisfaction in microfinance institutions in Wakiso district. A correlational cross-sectional survey design was used. Both quantitative and qualitative approaches were employed. Questionnaires and interviews were used to collect data from 10 selected SACCOs. Data were collected from  samples of SACCO members, board of directors, audit committee members and staff of the selected SACCOs. Documentary analysis was also done to enrich conceptualization of the problem and interpretation of data. Findings revealed that service quality aspects are collectively explanatory variables of customer satisfaction in SACCOs in Wakiso district. Furthermore, the aspect of management communicating effectively with all stakeholders is significantly related to customer satisfaction. The study concludes that service quality should be emphasized in SACCOs in order to ensure customer satisfaction. SACCOs management bodies should further investigate to better understand how their clients think and respond to service quality, because they are seeking to improve their customer satisfaction levels.


Keywords: Customer Satisfaction, Service Quality, Uganda, member- owned microfinance institutions

Information Technology Capability, Adoption, Logistics Service Quality and the Performance of Third Party Logistics Providers (Published)

The purpose of the study was to examine the relationships between IT capability, IT adoption, logistics service quality and performance of third party logistics firms in Uganda. The study was prompted by the delays in customs clearance; bureaucratic systems and lengthy cargo forwarding processes largely of manual nature that are evident among the activities of the third party logistics providers in Uganda. This could be attributed to lack of IT capability, low IT adoption and poor logistics service quality. A cross sectional data was collected from a sample of 80 registered clearing and forwarding firms in Uganda selected from a population of 109 firms using a simple random sampling technique. Data was collected using a close ended questionnaire. The results indicate significant positive relationships between IT capability, IT adoption, logistics service quality and performance of third party logistics firms. Findings also revealed that IT adoption and logistics service quality are significant predictors of the performance of the third party logistics providers. However, IT capability was found not to be a significant predictor of performance of third party logistics providers. Findings further revealed that IT adoption was a better significant predictor of the performance of third party logistics providers than logistics service quality. The research recommends that clearing and forwarding firms in Uganda need to adopt IT quicker and increase logistics service quality in order to improve on the performances of their clearing and forwarding operations especially in the areas of documentation, cargo tracking, warehousing, and shipment operations.

Keywords: IT Adoption, IT Capability, Information Technology (IT), Logistics, Service Quality, Uganda


The purpose of this study is to explore environmental impacts and responses in Uganda, an African country where a sustainability accounting approach is of growing significance and relevance. This is still a relatively new field of practice as well as a new academic endeavor, and thus entails originality. Oil and petroleum and energy-sector activities are generally key ingredients in the fast-growing economy, and are in the categories of being high risk with immensely negative social and environmental impacts. Petroleum companies dominate the top taxpayers in the country, which justifies a focus on the oil industry sector. This study is conceived as an improvement on one of the objectives of a wider study by the first author that investigated the relations among legitimacy, marketing and environmental accounting practices, focusing on oil companies in Uganda. Data collection methods included analysis of the way in which environmental accounting is developed and assessment of the credibility of inputs at various levels. Other data collection methods included a review of companies’ environmental reports/statements and ethnographic interviews at oil companies, formal and informal garages and filling stations. A questionnaire was also administered to 155 respondents drawn from 57 oil supply chains. Our major findings are that the main negative impacts on the environment in all oil marketing chains were soil and water pollution. There is an emphasis on profit margins at the expense of environmental factors in an equatorial country that induces climate change. The study results add to the body of knowledge on sustainability accounting to mitigate the environmental problems in place and minimize further occurrences. We suggest that future accountants need to understand and have knowledge of sustainability issues and how they can be captured in reports for a sustainable future.

Keywords: Africa, Environment, Uganda, impacts and resources, oil companies, sustainability accounting


We explored sources of psychoactive substances in public secondary schools and the means through which adolescents obtain those substances. The study was qualitative and exploratory, using purposive sampling of participants. We employed thematic content analysis, a phase by phase manipulation of thematic categories of data to obtain common themes. Findings show that small shops, kiosks and bars around schools were the major sources of psychoactive substances talked about by most of the FGDs (83.3%). Most FGDs also rationalized that some “bold” students escape from schools to procure psychoactive substances. This study underscores the role of businesses in school neighborhoods as sources of psychoactive substances in public schools. Students employ a variety of means/strategies of obtaining psychoactive substances, and to a bigger extent they escape from school to access the substances.

Keywords: Sources and means, Uganda, psychoactive substances, public schools, school adolescents


Globally, many scholars view entrepreneurship as important to small business enterprises (SMEs) in general because it is critical to development. Small business development is of key concern in Uganda, because SMEs dominate the Ugandan economy. However, the entrepreneurial performance is very low; it is therefore in the interest of the country to increase performance of these enterprises. This paper develops a conceptual model to test how to increase entrepreneurial performance among small business enterprises in Uganda: Data was collected by means of personal interviews, approximately 2000 face-to-face interviews with the entrepreneurs. Results indicated that entrepreneurship capital, entrepreneurial knowledge and entrepreneurial capacity have significant implications for entrepreneurial performance.

Keywords: Entrepreneurial Capacity and Knowledge, Entrepreneurial Performance, Entrepreneurship, Entrepreneurship Capital, Uganda, small businesses