Abstract:
he increase in formal financial accessis recognized as vital for improving household income and driving economic
growth. However, despite the rise in formal financial accessfrom 75.5% in 2019 to 83.7% in 2021 in Kenya, household
income generation remained low, suggesting that financial access alone may not be the primary issue. To delve deeper
into the factors influencing this adverse trend, this research focused on the role of saving literacy among SACCO
members in Machakos County, Kenya, drawing on the lifecycle saving theory. Employing a descriptive research
design, the study targeted 3,050 registered SACCO members from which a sample of 217 respondents was selected
through stratified sampling and purposive sampling. The study data was collected using self-administered structured
questionnaire and analyzed through descriptive statistics (percentages and means) as well as inferential statistics
(regression and correlation). The findings revealed thatsaving literacy had a significant positive role ((β = 0.46, p <
0.05), on household income generation, underscoring its importance in boosting income among SACCO members. As
a result, the study recommends the implementation of comprehensive saving literacy programs by SACCOs and
relevantstakeholdersto maximize their impact on income generation. Thisshould be coupled with effortsto promote
accessto financial resources and provide ongoing support and guidance to members, ultimately fostering improved
household income.
