ABSTRACT
This study focused on the role of the informal sector on people’s savings in Makindye division. The study geared in three objectives that include: To determine the role played by the informal sector in Uganda, to determine the level of savings in Uganda and to establish the impact of the informal sector on people’s savings in Uganda. The study will help the region and the country at large on the way of increasing people’s savings. The study was based on a cross sectional design and respondents included entrepreneurs in the informal sector and financial institutions. The study sample was made up of 80 respondents, purposively selected. The findings are presented in form of numbers, percentages as indicated in tables, graphs and charts. The study findings show that the mode and level of savings in the informal sector are majorly determined by flexibility of the saving mechanisms, gender of the individual, level of education, profitability of the business and the level of government initiative to support the entrepreneurs. According to the findings and conclusions, the study found it necessary that there should be increased government initiative in promoting the savings through establishing and improving on more flexible and community based saving schemes. Sensitization is very vital as well.