Intergenerational wealth transfer in families and people’s economic security in uganda: a case of Greater Kampala Metropolitan Area (GKMA).

Abstract

The purpose of this study was to explore the phenomenon of intergenerational wealth transfer (IWT) in the Greater Kampala Metropolitan Area (GKMA) and how it guarantees people’s economic security (ES). It covered the period 1997–2024, a time when the Ugandan government implemented deliberate policies aimed at improving citizens' well-being. The study sought to understand the persistent economic immobility in wealth transfer across generations and addressed three main research questions: What are the existing mechanisms of IWT in GKMA and how do they operate to guarantee people’s ES? What is the effect of intergenerational transfer of financial and physical capital on guaranteeing people’s ES in GKMA?; What are the challenges faced by wealth creators/possessors in undertaking IWT to guarantee people’s ES in GKMA and what are the possible mitigation measures? A phenomenological research strategy was employed to understand the phenomenon of IWT from the lived experiences of those involved. The study used interviews, discussions, and document analysis to collect qualitative data, while Nnvivo software facilitated thematic analysis. Although largely qualitative, the study incorporated some quantitative elements to present less descriptive data. Key findings revealed five major mechanisms of IWT in GKMA: wealth creation, management, preservation, transfer, and inheritance. The transfer of financial and physical capital was found to contribute significantly to people’s ES through means such as financial stability, business continuity, and homeownership. Challenges to effective IWT included family conflicts, lack of financial literacy, and unprepared heirs. Suggested mitigation measures included estate planning, effective family governance, communication, and conflict resolution. Based on these findings, the study recommends the FAWESU model, comprising subsystems like the board, family office, family constitution, investments, family council, and shareholders’ forum, as a framework for building the necessary infrastructure to support efficient IWT and guarantee people’s economic security.