Experts Share Tips on Building a Strong Savings Culture
Saturday, May 10 2025 9:00 am
By Julius Businge, Financial Journalist
Rehema Kahunde, a research analyst at Makerere University’s Economic Policy Research Centre (EPRC), begins her day with two things in mind — discipline and purpose. For her, saving money isn’t an abstract financial goal; it’s a way of life rooted in intention.
“Before people can start saving, they need to understand why saving is essential,” she explains. “Financial literacy and awareness play a crucial role in shaping the right mindset towards savings.”
Her approach is simple yet powerful: set clear goals and start small. “Even saving just Shs2,000 or Shs5,000 a day or week can go a long way,” she says, adding that consistency is more important than the amount.
Kahunde saves for a range of life goals — from future business investments to emergencies — and she urges others to do the same.
She is also a member of a community savings group that takes a creative approach to accountability and discipline, using a mobile money line with multiple custodians to ensure transparency and long-term commitment.
Kahunde strongly believes in diversifying income and embracing mobile savings tools such as MoKash. “Platforms like MoKash simplify the process and help people save automatically, which is especially helpful for people with spending temptations,” she adds.
Tools of the trade
Uganda’s financial ecosystem offers a variety of saving tools that cater to low and middle-income earners. These include mobile money platforms like MTN Mobile Money and Airtel Money, which allow users to save, send, and withdraw money at their convenience. Community-based models such as Village Savings and Loan Associations (VSLAs) and Savings and Credit Cooperative Organizations (SACCOs) offer peer support, small loans, and a sense of collective accountability.
Formal banking institutions provide savings accounts with flexible plans and low minimum balances. Products like the NSSF SmartLife plan, a voluntary savings scheme by the National Social Security Fund, are tailored for short to medium-term goals. The SmartLife plan allows individuals to contribute in small amounts and grow their funds over time through investment.
For those with more financial knowledge, unit trusts, government bonds, and Treasury Bills offer investment options with varying risk and return profiles.
These tools provide savers with the opportunity to grow their wealth while minimizing risk through diversification. Fixed deposit accounts, available in banks and microfinance institutions, also offer a safe way to earn interest over a set period, encouraging longer-term saving.
Meanwhile, behind Uganda’s growing savings infrastructure is a robust regulatory foundation laid by the Uganda Retirement Benefits Regulatory Authority Act, 2011.
This law, enforced by the Uganda Retirement Benefits Regulatory Authority (URBRA), introduced reforms to make retirement saving more accessible and flexible. One such reform is the legalization of voluntary retirement benefits schemes, which enable individuals — including informal sector workers — to save small amounts, even as low as UGX2,000 per day.
The law also provides for the portability of benefits, ensuring that savings are not lost when one changes jobs or schemes. Furthermore, trustees can tailor benefits to the needs of savers, including income drawdowns and medical cover, making retirement schemes more relevant to Ugandans.
According to Daisy Lynda Nabakooza, Chief Manager of Supervision and Market Conduct at URBRA, the Authority actively works with Parliamentarians and universities to promote early adoption of saving habits.
“We emphasize financial education and awareness as core elements of policy,” she explains.
URBRA also recognizes the importance of digitization and flexible policies to support low-income earners. As mobile phone and internet penetration rise, regulatory frameworks are being designed to support digital savings products.
Nabakooza adds that government incentives and transparency around payouts can enhance trust and encourage more people to save. URBRA is also building frameworks around cybersecurity and technology supervision under the National Payment System to ensure that funds are securely transferred and protected.
Recent research supports these efforts. The FinScope Uganda 2023 Survey, conducted by the Bank of Uganda and partners, reveals that while 60% of Ugandans do save, most do so irregularly. Only 14% save for emergencies. Financial literacy, low income, and high cost of living remain major barriers. Women tend to rely more on informal savings groups but often face additional economic pressures that limit their capacity to save.
On the global front, the Organization for Economic Cooperation and Development (OECD) Pensions Outlook 2020 stresses the importance of early and increased personal savings, especially in today’s dynamic labor markets. It recommends voluntary savings schemes and consistent contributions as a path to financial security in old age.
“Saving more and saving earlier can significantly improve retirement income adequacy,” the report reads in part.
The bigger picture
The benefits of saving extend far beyond the individual. At the micro level, savings provide a safety net during emergencies, help people achieve life goals, and reduce reliance on debt.
At the macro level, higher national savings contribute to economic growth by increasing the capital available for investment, reducing poverty, and boosting financial stability.
Even in tough economic times, experts say, the government can accelerate the saving culture by investing in financial literacy, supporting digital savings infrastructure, providing tax incentives, and ensuring that saving is safe, transparent, and rewarding.
As Kahunde puts it, “Saving is not just a financial decision — it’s a mindset. With the right tools, policies, and awareness, every Ugandan can build a future worth looking forward to.”
