Influence of Financial Literacy and Personal Characteristics on Personal Investment Among Employees of Kapkoros Tea Factory in Bomet County, Kenya

Abstract

Personal investment is becoming a major concern because of the financial complexity that have increased in the world economy. Fundamentally, lack of personal investment put many families in jeopardy. However, many factors are known to influence personal investment. Various researchers have carried out studies on the determinants of financial investment. Their general conclusion is that there are many factors influencing personal investment. However, less consideration has been given to the influence of financial literacy and personal characteristics among employees in the tea sector. The objective of this study was to establish the influence of financial literacy and personal characteristics on personal investment among employees of Kapkoros Tea Factory in Kenya. Descriptive survey design was used with the target population consisting of Kapkoros Tea Factory employees in Bomet County. Nassiuma’s formula and simple random sampling were employed in sample selection. A sample of 118 respondents was involved in the study. Data collection was carried out using a questionnaire and was analyzed using descriptive statistics (frequency count, percentage, mean and standard deviation), inferential statistics (correlation analysis and regression analysis) and the results presented using tables. Statistical Packages for social Sciences (SPSS) version 25 aided the analysis of the collected data. The study established that there was a positive relationship between financial literacy and personal investment (r=0.492; p<0.004). A positive relationship was also established between personal characteristics and personal investment (r=0.397; p<0.012). The regression analysis revealed that financial literacy and personal characteristics accounted for 84.1% of the total variance in personal investment among employees in Kapkoros Tea Factory in Bomet County. The study recommended that financial literacy should be enhanced among employees of Kapkoros Tea Factory since this can lead to increased personal investment. In addition, Kapkoros Tea factory should build financial literacy on its employees by organizing for financial workshops and seminars and also reading financial journals so as to be equipped with the required skills on personal financial investment plans.