UGAFODE Equips School Owners with Financial Literacy Skills to Strengthen Education Businesses

                                                                                                                                                                                                         Kampala, Uganda – 3^rd July 2026

UGAFODE Microfinance has conducted a financial literacy training for school owners aimed at strengthening financial management practices and promoting the long-term sustainability of private educational institutions.

The training, held at Rubaga Lakeview Hotel in Kampala, brought together school owners under the National Private Educational Institutions’ Association (NPEIA). The session focused on equipping school owners/Directors with practical financial management knowledge to help them run their schools as sustainable businesses while continuing to provide quality education.

Participants received practical guidance on budgeting, maintaining proper financial records, separating personal finances from school finances, borrowing responsibly for school expansion, and avoiding expensive loans from unregulated money lenders. The training also explored strategies for improving schools’ financial health and accessing affordable financing to invest in infrastructure, learning facilities, school buses, and other areas that enhance the quality of education.

During his presentation, Denis Ssenyonjo, UGAFODE’s Credit Analyst – Education, cautioned school directors against the common practice of using school funds for personal expenses without proper accountability. He observed that some school owners frequently instruct bursars to transfer school funds for personal use without clear records, making it difficult to monitor school finances and weakening financial discipline.

Denis encouraged school owners to separate their personal finances from those of their schools by paying themselves structured salaries or approved drawings instead of making unplanned withdrawals from school accounts. He explained that this strengthens accountability, improves financial reporting, and enables school owners to make informed business decisions based on the true financial position of their institutions.

During the training, Mutonerwa Florence, Head of Product Development, Research & Marketing at UGAFODE Microfinance, encouraged school owners to intentionally build long-term relationships with financial institutions to improve their access to affordable financing.

She noted that the journey begins by opening and actively operating accounts with institutions such as UGAFODE and onboarding their schools onto the SchoolPay platform. According to Florence, maintaining an active banking relationship enables financial institutions to better understand a school’s operations and support its growth.

She further explained that schools with established relationships and sound financial records can access affordable financing, including loans at competitive interest rates of about 12%, to invest in projects such as constructing classrooms, expanding school facilities, purchasing school buses, and other development initiatives.

Florence emphasized that financial partnerships are built on mutual trust and commitment, encouraging school owners to actively engage with their financial institutions. “Start the journey with us. Open your accounts, onboard your school on SchoolPay, and let us grow together. As the saying goes, ‘scratch my back and I scratch yours,'” she said, highlighting the importance of building lasting partnerships that benefit both schools and financial institutions.

The training was also facilitated by Florence Nambi, Branch Manager – Bombo Road, alongside the UGAFODE team, who shared practical financial management insights tailored to the unique needs of private educational institutions.

Speaking on behalf of the participants, Savio Sekamaanje, Chairman of NPEIA Rubaga, commended UGAFODE for organizing the training, saying it had equipped school owners with practical knowledge on managing schools as sustainable businesses. He noted that such initiatives are essential in helping education institutions improve financial discipline while continuing to deliver quality education.

Participants described the training as practical and relevant to the day-to-day management of their schools.

Rose Namatovu, Head Teacher of Light Africa Secondary School in Masanafu, said the session reinforced the importance of financial discipline when borrowing for development.

“From today’s session, I learnt that when you borrow money to develop the school, you should use it for the purpose for which it was borrowed and avoid diverting it to personal needs because you may fail to repay the loan. We also learnt how to plan for money through budgeting and spend it appropriately,” she said.

For Rebecca Lukoma, Director of Mercy Cecilia Kindergarten Day-care Centre in Namungoona, one of the biggest lessons was avoiding the costly trap of borrowing from money lenders.

“I learnt to use loan money for its intended purpose and avoid the risk of going to money lenders. If I misuse the borrowed money and end up borrowing from money lenders to repay the loan, it becomes very expensive and can put the school at risk of collapsing or even being sold,” she noted.

Resty Nandala, Director of God’s Promise Education Centre in Namungoona, said the training highlighted the importance of developing a savings culture before seeking financing.

“I learnt that when you start saving with institutions like UGAFODE and consistently build your savings, it becomes much easier to access financing at lower interest rates to develop your school,” she said.

The facilitators encouraged school owners to build strong financial habits, keep accurate records, and make informed financial decisions that will ensure the sustainability and growth of their schools while improving the quality of education offered to learners.

The initiative forms part of UGAFODE Microfinance’s ongoing commitment to advancing financial literacy and financial inclusion among schools across Uganda. By equipping school owners with practical financial management skills and connecting them to affordable financial solutions, UGAFODE continues to empower educational institutions to grow sustainably, strengthen service delivery, and contribute to Uganda’s socio-economic development.