
The study sought to assess the contribution of universities on socio-economic transformation of neighboring communities, taking a case of Bishop Stuart University and Mbarara University of Science and Technology in Mbarara Municipality. Using a mixed design, and being largely qualitative, the study utilized interviews with key informants, FGDs, observations and documentary reviews to collect data from a total of 56 respondents. Data was analysed by using thematic and content analysis as well as quoting verbatim narrations from respondents. The study findings revealed that universities have positively contributed to communities’ socio-economic transformation. However, findings further revealed that several challenges have been encountered in the process of transformation of the communities in question. The study finally makes recommendations that can effectively bring about meaningful partnerships between the universities and the neighboring communities such that the expected roles of universities and socio-economic transformation can be realized.