Determinants of poverty in Uganda : a case study of Nakaseke sub-county in Luwero district

Abstract

In order to understand the determinants of poverty in general, it is important to identify the characteristics which influence poverty at the household level. This study employed a logit model to investigate the determinants of poverty at the household level in Uganda, using Nakaseke sub-county in Luwero district, as a case study. The results indicate that household size and credit accessibility increase the probability of a given household being poor. On the other hand, education level of the household head, increased household expenditure on health, and increased household expenditure reduced the likelihood of a given household being poor. It is observed that the terms of credit need to be beneficial to both the lender and the borrower if credit accessibility is to help alleviate poverty. The study recommends that people should be availed with post-primary education opportunities since lack of basic (primary education) is a significant cause of poverty. Regulation of the activities of the informal credit sector, and provision of affordable and good quality medical care are crucial in the fight against poverty. Individual households need to allocate more time to income generating activities, such as farming, in order to complement efforts by government and non-governmental organisations to alleviate poverty.