Microfinance institutions and staff welfare in Uganda police force, a case of Kampala metropolitan policing area

Abstract

This study aimed at examining the microfinance institutions and staff welfare in Uganda police force using a case study of Kampala metropolitan policing area. The study objectives included: To examine the effect of income generation on staff welfare of Uganda police force focusing on Kampala metropolitan policing area, to assess the relationship between financial literacy programs and staff welfare in Uganda police force focusing on Kampala metropolitan policing area and to analyze the influence of emergency loans and quick loans on staff welfare of Uganda Police force focusing on Kampala metropolitan policing area. The study adopted a cross-sectional descriptive design and relied on a mixed methods approach to data collection and analysis. Specifically, the study involved a triangulation convergence model, using multiple sources of data or multiple approaches. This involved combining both qualitative and quantitative data collection and analysis techniques. The sample size included 375 officers selected for the study among which included 125 senior officers and 250 junior officers. The study used both qualitative and quantitative methods of data collection which included questionnaires and interview guides. The quantitative results revealed a strong positive correlation between income generation and staff welfare indicates a significant and strong positive relationship and this means that as engagement in income-generating activities increases. Additionally, the adjusted R-squared value suggests that 82.7% of the variance in staff welfare can be predicted by income generation indicators. This is a high predictive strength, indicating that income-generating activities such as side businesses, farming, or consultancies are critical for sustaining the economic welfare of Uganda Police Force officers. Descriptive statistics further supported these findings: the lowest mean (1.87) and a low standard deviation (1.21) were recorded for the statement, even though perceptions about the extent of overall well-being improvements varied. Additionally, the convergence of quantitative and qualitative data supports the conclusion that emergency and quick loans have a major influence on the welfare of police personnel in the Kampala Metropolitan Area. The study recommends that the government should establish a regulatory framework that ensures MFIs offer fair and accessible financial services to security personnel such as police officers. This includes capping interest rates, standardizing repayment terms, and promoting transparency in loan conditions. Academicians and researchers are encouraged to conduct further empirical studies on the intersection of financial inclusion and security sector welfare.