Abstract:
Increased formal financial access is widely recognised as a crucial factor in
boosting household income generation, a key driver of economic growth.
Paradoxically, despite Kenya’s notable increase in formal financial access from
75.5% in 2019 to 83.7% in 2022, household income growth has yet to follow
suit. Shockingly, over 50% of Kenyan citizens, in stark contrast to the 25-40%
seen in other developing nations, still endure extreme poverty, falling below the
international poverty line of $1.90 per day, according to a sobering 2022 World
Bank report. This grim reality indicates that financial access may not be the
issue. To shed light on this adverse trend, this research focused on the role of
investment literacy on household income generation among Savings and Credit
Cooperative Organization (SACCO) members in Narok County, Kenya. The
study was rooted in behavioural finance theory and adopted a descriptive
research design. Further, the study targeted 3,050 registered SACCO members,
from which a sample size of 217 was obtained using the Yamane 1957 formula.
Stratified and purposive sampling techniques were also used to select the study
sample. The study used structured questionnaires, which were self-administered
to collect the data. Descriptive and inferential statistics were used to analyse the
study data. A simple linear regression model was adopted for the study. The
findings revealed that investment literacy had a significant positive role (β =
0.225, p < 0.05) in household income generation, underscoring its importance in
boosting household income among SACCO members. As a result, the study
recommends implementing comprehensive investment literacy programs by
SACCOs and relevant stakeholders to maximise their impact on income
generation.
