Saving, Culture, Gross Domestic Product, Economic factors, Demographic Factors


Purpose: The purpose of this study was to establish the determinants of saving culture among households in Kenya’s survey of households residing in Nairobi County.

Methodology: The research used a descriptive research design.  The target population for this research study included the working population in Nairobi County. According to 2009 Census, the entire working population is over 985,016. This study adopted convenience sampling method. The sample size of 150 was arrived at using a sampling formula. Descriptive statistics such as mean and frequencies and inferential statistics such as correlation were used. These measures were calculated using Statistical Package for the Social Sciences (SPPS 17.0) software.


Results: The study finding was to establish the motives for savings among working population in Nairobi County. Results led to the conclusion that the top five rated motives for saving were; saving for down payment for durable goods, saving for future emergencies, accumulate funds for starting a business, reserve for future necessities and to gain financial independence in the future.

Other motives that were also rated highly include; to secure the future of their children and their needs, savings plan for the long term, save as a precaution since the future is unknown, inheritance for my children. The least ranked motives were to buy a house or durable goods, old age, holidays, and to have their money tied up for longer periods of time. The study findings also indicated that the level of education is a significant demographic factor that influences saving culture. The study findings indicated that respondents who were more likely to save were highly educated and those that were lowly educated were less likely to save. Furthermore, study findings led to the inference that age is a significant demographic factor that influences saving culture. The study findings revealed that young and middle aged people are more likely to save than old people. Results indicate that marital status is a significant demographic factor that influences saving culture. The study findings indicated that the married were more likely to save than single. Results also indicate that the monthly income is a significant demographic factor that influences saving culture

The results led to conclusion that interest rates affect the amount they saved. This implies that interest rate has a significant effect on savings. Results led to conclusion that statement that the higher the interest rate the higher they save. This implies that higher the interest rate leads to low saving. This further implies that a negative significant relationship exists between interest rate and saving. The study findings also indicate that majority disagreed with the statement that inflation affects the amount they save. The results also indicated that majority agreed with the statement that they tended to save more in an unstable inflation environment. This implies that inflation had a positive effect on saving among working population in Kenya. The majority agreed that the level economic growth affected the amount they saved. The results also indicated that the majority agreed with the statement that they tended to save more during periods of high economic growth. This led to conclusion that economic growth had a positive and significant effect on savings among the working population in Kenya.

Unique contribution to theory, practice and policy: In line with study results, it is recommended that the government and women empowerment organizations need to encourage savings among women. The education systems should be friendly to the working population in Nairobi through lowering of university entry costs and the improvement in the quality of education offered by middle level colleges. This is because it would positively influence savings. The government of Kenya may improve the income of the working population by reducing taxes on income and creating more employment opportunities. This would effectively boost savings. According to results, it is recommended that the government should adjust its fiscal policies by collecting more taxes and spending more as this will improve the level of national income.


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Author Biographies






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How to Cite

Momanyi, S., & Wainaina, S. (2016). DETERMINANTS OF SAVING CULTURE AMONG HOUSEHOLDS IN KENYA. A SURVEY OF WORKING POPULATION IN NAIROBI COUNTY. Journal of Poverty, Investment and Development, 1(1), 16–38. Retrieved from