DETERMINANTS OF SAVING DECISIONS AMONG MEMBERS OF MAASAI GROUP RANCHES IN KAJIADO COUNTY, KENYA: A CASE OF KUKU GROUP RANCHES

Abstract

Savings mobilization is an important element in determining the welfare of individuals and the society at large. There is usually a significant difference in the saving rates among countries and over time periods. This study sought to establish the effect of market frictions on saving decisions among members of Maasai Group Ranches in Kajiado County, Kenya by considering the case of Kuku Group Ranches. Mixed methods research design, which entails the use of quantitative and qualitative study approaches, was adopted. The population of interest was the 12,667 registered members of Kuku Group Ranches. Stratified random sampling was used and a sample of 384 registered members of Kuku Group Ranches was selected. Semi-structured questionnaires were administered to collect primary data, which was analysed using descriptive statistics alongside ordinary least squares regression. The study established that market frictions were negatively and significantly related to saving decisions. This implied that an increase in market frictions such as transaction costs, lack of trust and regulatory barriers led to a decrease in saving decisions. The study recommended that the Government of Kenya should consider designing and implementing an incentive scheme to motivate financial institutions towards promoting financial inclusion policies.