ABSTRACT The purpose of this study was to investigate the causers of poverty and school drop out of students selected in schools in Kambuga Sub-county, Kanungu District, Uganda. The specific objectives of the study were to find out the cause of school dropout, to find out the impact of poverty on school dropout and establish solutions to the school dropout problem in Kambuga Sub-county, Kanungu District, Uganda. The methods used for data collection was interviews for the parents and questionnaires for teachers and students involved in the study The findings were presented and interpreted in relation to the study objectives and research questions, while linking to the existing literature, results included demographic characteristics, frequency and percentages. Basing on the findings. It was observed that poverty affected and caused school drop outs negatively. In chapter five development of solutions to the problems, effects and causes of drop out. The findings suggested some recommendations on areas of providing free education for all students, bursaries and also dealing with parents who force their children in early marriage.