Abstract This research is about the financial management and productivity of micro finance institutions in Uganda. Its objectives are (i) To identify financial management measures used by micro finance institutions in Uganda. (ii) To establish productive measures of micro finance institutions in Uganda. (iii) To identify factors influencing low/high productivity of micro finance institutions in Uganda. (iv) To find the relationship between financial management and the productivity of micro finance institutions in Uganda. It was found out that most of the respondents were females, educated and business women. Among the recommendations given are: Micro Finance Institutions should shift from a flat rate, to reduce the interests rate Micro Finance Institutions should mobilize savings which provide a sustainable source of funds at lower cost also has the social benefit of motivating Micro Finance Institutions to encourage savings other than borrowing from commercial banks which charge high interest rates which are passed on to the customers and Better education on when to borrow not to borrow and when saving is a better strategy, better information to clients by requiring financial institutions to disclose interest rates and fees. 

TABLE OF CONTENTS 

Declaration ............................................................................................................. i 

Approval ................................................................................................................ ii 

Dedication ............................................................................................................ iii 

Acknowledgements .............................................................................................. iv 

Abstract ................................................................................................................. v 

List ofTables ........................................................................................................ ix 

Acronyms .............................................................................................................. x 

Acronyms .............................................................................................................. x 

CHAPTER ONE ................................................................................................... 1 

1.0 Introduction ................................................................................................ 1 

1.1 Background of study and case study .............................................................. 1 

1.2 Problem Statement. ........................................................................................ 2 

1.3 Objectives of the Study .................................................................................. 3 

1.3.1 General Objective ........................................................................................ 3 

1.3.2 Specific Objectives of the Study .................................................................. 3 

1.4 Research Questions ....................................................................................... 4 

1.5 Scope of the Study ......................................................................................... 4 

1.6 Significance of the Study ................................................................................ 4 

CHAPTER TWO ................................................................................................... 6 

2.0 Literature Review ........................................................................................... 6 

2.1 Micro Finance in Uganda ............................................................................... 6 

2.2 Categories of Micro Finance Institutions in Uganda ....................................... 7 

2.3 Financial Management ................................................................................. 10 

2.4.1 Financial management schemes used by micro finance institutions in 

Uganda ............................................................................................................... 10 

2.5 Objectives of Financial Management ........................................................... 12 

2.6 Productivity ................................................................................................... 14 

2.6.1 Measures of productivity of micro finance institution in Uganda ................ 14 

vi 

2.7 Relationship between financial management and productivity of micro-finance 

institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 

CHAPTER THREE ............................................................................................. 16 

RESEARCH METHODOLOGY .......................................................................... 16 

3.1 Introduction .............................................................................................. 16 

3.2 Area and Geographical scope ................................................................. 16 

3.3 Sample Design ........................................................................................ 16 

3.4 Sample size ............................................................................................. 16 

3.5 Procedure for data collection ........................................................................ 16 

3.6 Data collection ......................................................................................... 16 

3.7 Data Analysis ............................................................................................... 17 

3 .8 Analyzing data ......................................................................................... 17 

3.9 Limitations ............................................................................................... 18 

CHAPTER FOUR ............................................................................................... 19 

DATA PRESENTANTION AND ANALYSIS ....................................................... 19 

4.1 introduction ................................................................................................... 19 

4.2 Demographic Background of the Respondents ............................................ 19 

4.3 Financial Management Schemes ................................................................. 21 

4.4 Objectives of a Financial Management ........................................................ 23 

4.4 Measures of Productivity .............................................................................. 23 

4.5 Productivity ................................................................................................... 24 

4.5.1 Measures of productivity ........................................................................... 24 

4.5.2 Factors influencing productivity of micro finance ....................................... 24 

CHAPTER FIVE ................................................................................................. 26 

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS ...... 26 

5.0 Introduction .................................................................................................. 26 

5.1 Summary ...................................................................................................... 26 

5.3 Recommendations ....................................................................................... 27 

Vil 

5.4 Conclusion ................................................................................................... 28 

References ......................................................................................................... 29 

APPENDICES .................................................................................................... 30 

Appendix A: Questionnaires ............................................................................... 30 

Appendix B: Curriculum Vitae ............................................................................ 32 

Appendix C: Map of study area .......................................................................... 34 

Appendix D: Proposed Budget.. ......................................................................... 35 

Appendix E: Work plan ....................................................................................... 36 

Appendix F: Introductory Letter .......................................................................... 37