Assessing the impact of financial literacy in proper utilization of compensation Aawards by PAPs in compulsory acquisitions in Uganda.
Abstract
This study addresses the pressing issue of the impact of financial literacy on the effective utilization of compensation awards in compulsory land acquisitions in Uganda. With rapid infrastructure development leading to an increasing demand for services and subsequent compulsory acquisition of land, the potential vulnerability of affected populations (PAPs) becomes apparent, particularly considering the predominant lack of secondary education (79.6% without secondary education). Despite the growing infrastructure, financial literacy remains a critical factor in ensuring the sustainable use of compensation awards.The research aims to assess the Knowledge, Attitudes, and Practices (KAP) of financial management by PAPs, exploring the intricate relationship between financial literacy and the proper utilization of compensation awards. Additionally, the study investigates whether financial literacy education is integrated into the compensation procedures carried out by institutions involved in compulsory acquisitions.Focusing on areas around Kampala, specifically Mpigi and Wakiso districts, and key institutions such as the Ministry of Lands, Housing and Urban Development (MLDU), Uganda National Roads Authority (UNRA), Uganda Electricity Transmission Company Limited (UETCL), and National Water and Sewerage Corporation (NWSC), this research provides valuable insights into the financial dynamics of compensation awards in Uganda. The findings aim to contribute to informed policy decisions and interventions, ensuring the adequate and equitable compensation of PAPs and ultimately promoting sustainable development.