Mobile Money Usage and Household Financial Resilience in Uganda
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Date
2026-04-15
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Uganda Christian University
Abstract
This research study analyses the significant relationship of mobile money usage and household financial resilience in Uganda. There are combined factors are enhanced and influenced as a combination of factors, including financial inclusion, economic stability, and the ability to manage expenses effectively. Addressing these factors can help households in Uganda build a stronger financial foundation and improve their overall financial well-being.
Financial wellbeing is measured in terms of cash flow management (income) and quality of life (or quality standard of living through parameters such as investment, liquidity, expenses and debt management (Setiyani & Solichatun, 2019). Therefore, the concepts of the study are derived from consumer theory and theory of reason action. The latest studies have shown that financial wellbeing is fundamental for the improvement of the quality of life both in urban and rural areas, (Brüggen et al., 2017a) as evidenced by the way people live in Asia, USA and Europe globally which can be characterized by finances to promote better welfare of households in Uganda. Financial wellbeing is important because it helps to improve individual’s livelihood in a community or society. Financial wellbeing can help one to make a choice to finance his/her current and future obligations. Financial well-being is the foundation on which so many other aspects of a family’s life are built as
stipulated by international and national initiatives such as Sustainable Development Goals, (2030), National Development Plan III and Uganda Vision 2040. More so, Sukumaran (2021) noted that it also helps to improve the confidence, sentiment and knowledge that enable people to take better
decisions in their lives. Financial Well-being has positive implications on educational achievement, contributes to better health outcomes and builds a stronger community for all nations worldwide (Mokhtar, 2019).
Mobile money in Uganda has become a cornerstone of financial inclusion. The Uganda mobile money market size was valued at USD 167.3 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 1,289.1 Billion by 2034, exhibiting a CAGR of 24.71%. With Finscope Overall, 23.1% of Ugandan adults reported any mobile money usage (95% CI: 21.1% –
25.2%). This means about one in four adults used mobile money for transactions. The surge in mobile phone ownership and internet connectivity represents one of the pivotal Uganda mobile money market trends. In a country where traditional banking infrastructure is often limited, especially in rural and remote areas, mobile money platforms provide a practical and scalable solution for financial inclusion. As of early 2024, Uganda reported 13.3 million internet users, equating to a 27% internet penetration
rate. This growing digital access is enabling more Ugandans to engage with financial services that were previously out of reach. Mobile money facilitates a wide range of functions including peer-topeer transfers, bill payments, merchant transactions, and cross-border remittances all through mobile
phones. The simplicity, affordability, and security of these platforms are particularly appealing to the unbanked population. Moreover, as mobile applications become more sophisticated and user-friendly, adoption continues to rise across demographics, making mobile money a cornerstone of Uganda's evolving digital economy. The financial resilience of households in Uganda is influenced by various factors, including access to financial products and services, usage, quality and welfare
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Undergraduate