Women Groups Savings and Household Welfare :

Abstract

This study examined the contribution of small-scale women’s savings groups to household welfare in Nyakayojo, Mbarara City, Southwestern Uganda. Women’s groups have emerged as crucial safety nets in contexts of financial exclusion, providing access to savings, loans, and social support. However, their effectiveness depends largely on their capacity to use technology, adapt to market and social changes, and exercise effective leadership. Guided by the intra household bargaining theory, the study sought to assess how these dimensions influence the welfare of households. The research employed a qualitative design. Data were collected through in-depth interviews, focus group discussions, and key informant interviews with members of selected women’s groups. Purposive sampling ensured representation of participants with diverse group experiences. Data were analyzed thematically, allowing for the identification of major themes and sub-themes that illustrate the dynamics between women’s group activities and household welfare. Findings on the role of technology revealed that mobile phone use enhanced household welfare through rapid access to healthcare, securing school requirements, stabilizing incomes, enabling profitable trade, and facilitating direct payments for household needs. the results on the adaptability, demonstrated that flexible saving and loan terms, collective bulk buying, coping with price fluctuations, and strong social support systems helped members manage risks, maintain food security, and sustain education and health expenditures, focusing on leadership and management, results indicated both positive and negative impacts: while collaborative decision-making, accountability, and peer encouragement improved household stability, autocratic tendencies, financial mismanagement, and inequitable distribution undermined group cohesion and household benefits In conclusion, the study established that women’s groups significantly enhance household welfare when they integrate technology, practice adaptive strategies, and adopt transparent, inclusive leadership. However, poor governance and inconsistent management erode trust and limit welfare outcomes. The study recommends that women’s groups formalize adaptive protocols such as emergency loan rules, prioritize transparent leadership through regular reporting and role rotation, and proactively seek training in financial literacy and enterprise management. Policymakers and NGOs should strengthen women’s groups with capacity building programs in leadership, digital finance, and conflict resolution to ensure sustainability and equitable benefits for all members.