This study examined the major determinants of savings in Uganda using secondary annual time series data for the period 1987-2018. The macroeconomic variables used include GDP, gross domestic product per capita GDPC, final consumption expenditure FCE, Gross national expenditure, inflation, merchandise trade, tax on income profits and capital gains and broad money supply. The model was estimated using co-integration and error correction model to analyze the short and long run equilibrium among the variables. The ADF test shows that gross domestic savings, merchandise trade and tax on income profit and capital gains contained unit root at levels. However, all variables were stationary after first difference. Results of the study showed that most variables except Gross national expenditure and broad money supply play a significant role in determining the savings rate in Uganda. The coefficient analysis also shows that GDP, gross domestic product per capita, merchandise trade and broad money supply have a positive impact while the final consumption expenditure, gross national expenditure and inflation revealed negative impact on the savings rate in Uganda. The study also concludes that the speed of adjustment is 18.6% which means that the model will correct short run disequilibrium position at the rate of 18.6% annually. The paper concludes that there is a potential for increased domestic savings and this calls for policy changes and political will among policy makers who should put more emphasis on final consumption expenditure, inflation, taxes, gross domestic product per capita, taxes on incomes profits and capital gains and merchandise trade that influences saving.

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