| dc.description.abstract | The government is not able to provide efficiently for its citizens, therefore there is need to
empower households economically as this will create economic growth and stability within the
county. This study aimed at finding the effects of personal borrowings and savings on economic
empowerment of households in Nairobi County. The survey covered Nairobi county residents
working or doing business within the Nairobi City County. According to KNBS 2013, there were
985,016 households in Nairobi County. This was the group from which the sample was drawn.
The study used simple sampling technique in coming up with the study‟s sample. Random
sampling was used in choosing the sample within the strata. To get a representative sample of
Nairobi residents a stratified random sample of some 200 households was selected, considering
households which were headed by men as well as those headed by women. The primary data was
through administering questionnaires. The data collected was analyzed using descriptive
statistics. Data obtained was analyzed using multiple linear regression techniques. The study
found that respondents were economically empowered by financial seminars attended
occasionally for updates and necessary advice due to frequent change in technology and
competition purposes to a great extent. According to the findings various financial institutions
were available to provide and promote borrowings, which influenced respondents‟ decision to
borrow in order to improve their household‟s economic status to a great extent. The study
concludes that holding all factors (personal borrowings and personal savings) constant, factors
affecting economic empowerment of households will be 0.116. The findings presented also
shows that taking all other independent variables at zero, a unit increase in personal borrowings
will lead to an increase in the scores of the economic empowerment of households. On the other
hand a unit increase in personal savings will lead to an increase in economic empowerment of
households. This infers that personal borrowings influence the economic empowerment of
households most followed by personal savings. The study also established a significant
relationship between economic empowerment of households and the independent variables;
personal borrowings and personal savings as shown by the p values. Policy recommendations are
that households should consult financial experts to help make better investment decisions. The
government should partner with micro financial institutions to foster financial training for
households even as they as they are encouraged to take loans for economic growth. | en_US |
