Determinants of Saving Culture Among Employees in Small and Medium Enterprises in Nairobi County, Kenya

Abstract

The purpose of the study was to look into determinants of employees saving culture in Kenya, whose findings would enable improvement of savings in the economy which is a vital component for the economic development of any country. The study focused on the employees in the Small and Medium Sized Enterprises in Nairobi County. Kenyan’s saving rate stands at 13 percent against a target of 31 percent recommended in the vision 2030 blue print and below the world’s average rate of 20 percent. There was therefore a need for investigating the factors that lead to saving culture. In order to achieve the set objectives a descriptive and inferential statistics was employed in data analysis. The questionnaires were the research tool used for the gathering data. These results in the study show that saving culture is poor despite the healthy and reliable financial systems that relates to the savings mobilization. The findings of the research is hoped to be a guide to the financial institutions as well as the Kenyan government who are the policy makers to make informed decisions which will boost the employees saving rate in Kenya.