By KT Reporter
Business founders have been advised to initiate a succession plan to ensure that their enterprises survive for generations. Family businesses in Uganda significantly contribute to the country’s economy, contributing over 70% to the GDP (PwC, 2023), and constitute the largest percentage of Micro, Small, and Medium Enterprises in the country Dr. Linda Nakato, a Senior Research Fellow at Economic Policy Research Centre (EPRC), advised that early involvement of children and spouses is key to their survival one the founder dies.
Nakato was part of the research team on a study titled “From Generation to Generation.” It explored why the majority fail to transition beyond the first generation. It was out of concern that the majority of Ugandan businesses fail to transition beyond the first generation.
The study covered Kampala, Mukono, Wakiso, Jinja, Masaka, Mubende, Mbarara, Fort Portal, Sheema, Gulu, and Lira between July and August 2025. Out of the 36 businesses analysed, Nakato said 21 had boards, and only 15 included independent, non-family members.
Businesses sampled included Bella Wine, Movit, Spear Motors, Crest Foam, Kampala Quality Schools, Victorious Schools, Jesa, Numa Feeds, and others. Such family enterprises are major economic contributors—PwC data shows they accounted for over 70% of Uganda’s GDP in 2023 and form the largest share of the country’s Micro, Small, and Medium Enterprises. Despite their significance, EPRC notes that Uganda’s ratio of first-generation to multi-generational family businesses stands at 4:1.
This means most family businesses are still in their founding stage and face key challenges such as weak governance structures, limited formal guidance on family business dynamics, unclear roles among family members, and the absence of formal succession plans.
Commenting on the findings, Prudence Ukkonika, founder of K-Roma Limited—producers of Bella Wine and Juices—said transition is one of the biggest challenges for founders.
She shared personal struggles with formalising business systems, recalling how distressed she became when her daughter introduced stricter financial controls. She said she was nearly depressed when the business shifted from mobile-money management to depositing all revenue into the bank, which limited her ability to access funds informally.
On whether children should automatically be involved in family businesses, former New Vision CEO Robert Kabushenga cautioned against forcing them into roles they may not want.
Kabushenga, now a coffee farmer, argued that mixing family relations with business operations has contributed to the collapse of many enterprises shortly after their founders die. He said bringing in professional managers is often a better approach to sustaining family-owned companies.
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