Analysis of the factors determining the household expenditure in Mbarara: a case study of Rubindi Town Council

Abstract

The main purpose of this study was to analyze the factors affecting household expenditure in mbarara. The study was conducted on a primary data that was collected from households of karweshanga, Kabare and Bistya parishes rubindi town council. The analysis was done using the multivariate regression model. Table 4.1 revealed that 43% of the respondents were females and the rest were males. The average age of the household heads was 46 years with the youngest household head having 22 years and the oldest having 85 years. The average number of People who stay in a house is 5 people having a minimum number as 1 person and a maximum number as 15 people. Majority (32%) of the household heads had Bachelor’s degree, 31% had Secondary level, 25% had Master’s Degree and 12% had diploma. employed household heads totaled to the percentage of 57%, where 32% were unemployed while 11% were others. Table 4.2 indicated there was a week positive significant statistical relationship between the total household expenditure and the age of the household head, household size (number of people in the household), the household heads who have a Bachelor’s degree and Master’s degree r coefficients (0.3719*), (0.3421*), (0.3823*) and (0.4379*) respectively. meanwhile, the monthly income in UGX had a strong significant relationship with the total household expenditure r (0.6979*). This shows that household expenditure is likely to increase with increase in the variables above. Table 4.3 shows that 64.6% variation in the household expenditure is explained by the model. Gender, Household monthly income and employment status (Others) significantly influence the household expenditure. Gender of the household head was a statistically significant determinant of the household expenditure (P-Value =0.002). If gender of a person was female, the expenditure reduces by Ugx 184,946 on average, Monthly household income in UGX was significantly associated with household expenditure (P-Value =0.000). Increase in the monthly household income in UGX increases the household Expenditure by Ugx 0.1071903 on average. The study therefore recommended encouraging the households to save part of their income earned in order to cater for the unforeseen circumstances which may lower down there standard of living. Such as illness, accidents etc.