| dc.description.abstract | Savings play a major role in economic development since an increase in savings leads to
an increase in investment hence improve gross domestic product. Low savings in an
economy means unfavorable growth of the economy, poor job creation and inferior
overall living standards relative to nations with a better savings performance. The study
used KIHBS 05/06 data which covered a total of 13,430 households across all districts in
Kenya, both rural and urban. For the purposes of this project a sample of 1500
households was considered. The results show that both male and female household heads
save a portion of their household income in Kenya.The study revealed that household
heads within the age bracket of 45-65 years had the highest (65.6 percent) saving rate of
0.00-0.20 percent and the least (9.4 percent) saving rate of 0.041-0.60. Results showed
that savings is positively related to total income, gender and education but negatively to
employment status, age and age squared of the household head. Being a male household
head indicate that the household saving would increase by Shs. 2,824.26 while being a
female household head, the household saving would increase by Shs. 13,047.4. The
study recommends that Low income earning households should be sensitized on the
importance of savings. Results also indicate that the more the level of education of the
households heads the more the likelihood of falling within higher saving rate threshold.
Therefore the government should put up measures to educate as many people as possible. | en |
