Innovative Cost Control Practices and Financial Performance of Private Secondary Schools in Kagadi District, Uganda

The financial sustainability of private secondary schools in Sub-Saharan Africa has become a growing concern due to rising operational costs. Many private secondary schools continue to face challenges related to profitability, liquidity, and solvency, necessitating effective, innovative cost management strategies. This study examined the effect of innovative cost control practices on the financial performance of private secondary schools in Kagadi District, Western Uganda. The study adopted a mixed-methods approach guided by the pragmatic research paradigm. Quantitative data were collected from 255 respondents using structured questionnaires, while qualitative data were obtained through key informant interviews and documentary review. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis, and qualitative data were analyzed thematically. The findings revealed that innovative cost-control practices were implemented to a moderate extent across private secondary schools. Cost reduction initiatives and cost variance analysis were inconsistently applied and had limited influence on managerial decision-making. Cost standardization emerged as the most effective innovative cost control practice and the only statistically significant predictor of financial performance. Correlation analysis showed significant positive relationships between Innovative cost control dimensions and financial performance, while regression results indicated that innovative cost control practices explained 16.5% of the variation in financial performance. The study concludes that effective innovative cost control contributes significantly to financial performance, although weak implementation systems constrain its impact. The study recommends strengthening cost-standardization frameworks, institutionalizing regular variance analysis, and enhancing financial management skills to improve the financial sustainability of private secondary schools.