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. National savings consists of personal savings, business
savings and public savings. This study sought to establish the determinants of saving among
members of Maasai Group Ranches in Kajiado County by considering the case of Kuku
Group Ranches. The study specifically sought to establish if the level of income, availability
of information, personal factors and market frictions influenced saving decisions among
members of Maasai Group Ranches in Kajiado County. 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 the level of income, availability of information and personal factors
were positively and significantly related to saving decisions while market frictions were
negatively and significantly related to saving decisions. This implies that an increase in the
level of income leads to an increase in saving decisions. Majority of the respondents in this
study earned above the set minimum daily wage in Kenya and were involved in some form of
saving. Similarly, an increase in the availability of information leads to an increase in saving
decisions. Majority of those interviewed in this study did not have sufficient information
about formal saving products provided by financial institutions in Kenya. An improvement in
personal factors such as level of education leads to an increase in saving decisions. Even
though the majority of the respondents in this study possessed at least basic education, it was
observed that they lacked basic financial literacy. An increase in market frictions such as
transaction costs, lack of trust and regulatory barriers leads to a decrease in saving decisions.
The majority of the respondents in this study deemed the fees charged to access and operate
bank savings accounts in Kenya too high. Similarly, the requirements for opening and
operating bank accounts were deemed too complicated by majority of those interviewed in
this study. These findings were presented inform of graphs, charts and tables. The study
recommended that members of Maasai Group Ranches should diversify their sources of
income and methods of saving to avoid overreliance on livestock. They should also actively
seek for financial information. In addition, the financial institutions in Kenya should provide
basic financial literacy and financial products targeting members of Maasai Group Ranches.
Finally the Government of Kenya should consider designing and implementing an incentive
scheme to motivate financial institutions towards promoting financial inclusion policies. The
incentive scheme could include granting of tax waivers to financial institutions that provide
banking services to rural underserved communities at affordable costs.
