Analysis of Personal Loans and Household Financial Health of Primary School Teachers in Kenya
International Journal of Economics, Finance and Management Sciences
Volume 6, Issue 1, February 2018, Pages: 6-17
Received: Oct. 24, 2017;
Accepted: Nov. 9, 2017;
Published: Jan. 11, 2018
Views 2426 Downloads 189
Florence Jepchumba Bett, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
Robert Kirui, Department of Accounting, Finance & Management Science, Egerton University, Nakuru, Kenya
Liberalization in the finance industry in Kenya has led to increased access to credit facilities to Kenyan employees. Primary school teachers are among the beneficiaries. The objectives of this study were to: evaluate the effects of school fees loans on household financial health of primary school teachers in Emining division, assess the effects of home improvement loans on household financial health of primary school teachers in Emining division, examine the effects of emergency loans on household financial health of primary school teachers in Emining division and establish the effects of development loans on household financial health of primary school teachers in Emining division. The study used descriptive research design. Purposive sampling was used to collect data from 165 respondents, 5 teachers from each of the thirty three primary schools, in Emining Division, Baringo. Biographic data on the respondents was analyzed using descriptive statistics such as percentages. Primary data for this study was collected using structured questionnaire. The questionnaire was self-administered. Regression was conducted to test the effect of the various independent variables pooled together on the dependent variable. Two tail t-test and ANOVA test was used to determine the degree of significance of the relationship. The data analyzed was presented in form of tables. Relationships between unsecured personal loans and household financial health of primary school teachers in Emining division was determined at alpha level of p<0.05. Results of the study showed that there is statistical significant relationship between unsecured personal loans and household financial health. Findings of the study also revealed that there is a strong positive relationship between unsecured personal loans and household financial health with a significance value of p= 0.000. Therefore the study concluded that there is strong positive statistical significant relationship between unsecured personal loans and household financial health of primary school teachers in Emining Division, Baringo County, Kenya.
Florence Jepchumba Bett,
Analysis of Personal Loans and Household Financial Health of Primary School Teachers in Kenya, International Journal of Economics, Finance and Management Sciences.
Vol. 6, No. 1,
2018, pp. 6-17.
Baek, E., & De Vaney, S. A. (2004). Assessing the Baby Boomers’ Financial Wellness Using Financial Ratios and a Subjective Measure. Family and Consumer Sciences Research Journal, 32, 321-348.
Bank of Africa (2015) Types of Loans retrieved on Jan 14, 2015 from http://www.boakenya.com/personal-banking/loans-credit-facilities/otherloans/unsecured-personalloans
Bank of Baroda (2015) Types of Loans retrieved on Jan 14, 2015 from http://www.bankofbaroda.com/pfs/homeloans.asp
Becchetti L; & Conzo, P (2013). Credit Access an Life Satisfaction; Evaluating the Non Monetary Effects of Micro Finance. Applied Economics.
Bhutta N. (2012) Payday Credit Access and Household Financial Health; Evidence From Consumer Credit Records.
Bhutta. N; Skiba P. N. & Tobacman. J. (2014) Payday Loan choices and Consequences.
Boresha Sacco (2015). Types of Loans retrieved on Jan 14, 2015 from https://www.google.com/search?q=boresha+sacco+loans+topup/refinaneloans
Brennan, C., & Gallagher, K. (2007) Consumer Over Indebtedness a Review of the Quality of Money Advance Services in Scotland. International Journal of Consumer Studies.
CBK (2014) Central Bank of Kenya Prudential Guidelines for Institutions Licensed Under the Banking Act Cbk/Pg/01
CFC Stanbic Bank (2014) Types of Loans retrieved on Jan 14, 2015 from http://www.cfcstanbicbank.mobi/heartlandbanking/homeLoan.jsp
Chang, Y. R., Hanna, S., & Fan, J. X. (1997). Emergency Fund Levels: Is household Behavior Rational? Financial Counseling and Planning, 8(1), 47–55
De Vaney, S. A. (1997). Using Financial Ratios. In Garman, E. T. & Xiao. J. J. (1997). The Mathematics of Personal Finance: Using Calculators and Computers. 141-153. Houston, TX: Dame Publications, Inc
Drentea, P. & Lavrakas, P. J, (2000). "Over the Limit: the Association among Health, Race and Debt." Social science and Medicine 50, pp 517-529.
Egerton University Sacco (2014) Types of Loans retrieved on Jan 14, 2015 from http://www.egertonuniversitysacco.coop/index.php/normalloans
Farugui U (2008) Indebtedness and the Household Financial Health; An examination of the Canadian Debt Services Ratio Distribution, working paper 2008-46.
Financial Therapy Association (2013) About the FTA, Journal of financial Therapy Article 4, Issue 1.
Friedman. M., (1957), a Theory of consumption function, The Permanent Income Hypothesis, National Bureau of economic Research 0-691-04182-2 (p. 20 - 37), Princeton University Press.
Garrett. S, James. R. N (2013) Financial Ratios and Perceived Household Satisfaction. Journal of financial Therapy, issue 1, vol 4.
Gay, R. (1992). Educational Research: Competencies for analysis and application (4th Ed.). New York: Macmillan Publishing Company. 217-222.
Gichera Thompson. J. (2014) The effects of Student Loans on Long-term Households Financial Stability.
Grades, E. (2007). The impact of Microfinance on Rural Poor Households’ Income and Vulnerability to Poverty: Case Study of Makueni District, Kenya. Inaugural- Dissertation.
Gutman. A, Garon. T, Hogarth. J & Schneider. R (2014), Understanding and Improving Consumer Financial Health in America. Center for Financial Services Innovation found at www.cfsinnovation.com
Hudon M. (2009), Should Access to Credit be a Right? Journal of Business Ethics, 84 (1).
Joo, S., & Grable, J. E. (2004) an Exploratory Framework of the Determinants of Financial Satisfaction. Journal of family and Economic issues 25(1) 162-171.
Karusulu M. (2008) Stress Testing Household Debt in Korea. IMF working paper WP/08/255) Asia and Pacific Department.
Kenya Census (2009) Information on Kenya-Census-2009, Retrieved on December, 11 2015 from http://www.scribd.com/doc/36672705/
Kenya Commercial Bank (2014) Types of Loans retrieved on Jan 14, 2015 from https://ke.kcbbankgroup.com/personal-banking/borrowing/personal-loan/detail/unsecurednon-check-off-loan.
Kothari, C. (2008). Research Methodology, Methods and Techniques. New Delhi: New Age Inter-national (p) Limited.
Langat, J. (2009) Effects of Credit on Household Welfare: The Case of “Village Bank” Model in Bomet District Kenya., A Research Project Submitted in Partial Fulfillment of the Requirements for the Award of Master of Science Degree In agriculture and Applied Economics, Egerton University.
Lyons, A. C., & Yilmazer, T. (2005). Health and Financial Strain: Evidence from the Survey of Consumer Finances. Southern Economic Journal.
Milango Financial services (2014) Types of Loans retrieved on Jan 14, 2015 from https://www.google.com/search?q=milango+loans&ie=utf-8&oe=utf-8
Modigliani, Franco and Richard H. Brumberg, (1954), “Utility Analysis and the Consumption Function. An Interpretation of Cross-Section Data.
Mugenda, O. and Mugenda A. (2003) Research Methods: Quantitative and Qualitative Approaches. Nairobi: Acts Press.
Nam. I. & Elliott., W (2013) Is student Debt Jeopardizing the Short-Term Financial Health of U.S Households?
Nangila, L. O. (2013) The Efects of Unsecured Personal Loans on Household Welfare of Secondary School Teachers in Bungoma County, Kenya., A Research Project Submitted In Partial Fulfillment of The Requirements For The Award Of The Master Degree In Business Administration (MBA), University Of Nairobi.
Orodho, (2009). Elements of Education and Social Science Research Methods.
Porter, N. M & Garman, E. T. (1993). Testing a Conceptual Model of Financial Well-Being. Financial counseling and planning.
PWC, (2007). Unsecured loans in retail banking. Ensuring sustainability in the Muslim world: Empowering people, leveraging resources. A World Islamic Economic Forum Special Commemorative Publication.
Quach. H., Mullinax. A., & Murinde V. (2005) Access to Credit and Household Poverty Reduction in Rural Vietam; A Cross-Sectional Study.
Rodrik, Rosenzweig. (2009). Access to Finance Chapter 2, Handbook of Development Economics, Vol. 5.
Sim, J. & Wright. C. (2000). Research: Concepts, Designs and Methods. Oxford, Oxford University Press.
Steed B. (2011) Personal Finance: Another perspective, Budgeting and Measuring your Financial Health, chapter 3 Brigham Young University.
Tilakaratna, M. G. (2006) Impact of Micro-Credit on Selected Household Welfare Attributes; Evidence from Sr. Lanka.
World Health organization. (1997) Measuring Quality of Life found at http.//www.who.Int. mental-health/media/68pdf
World Bank Survey, (2012) Unsecured Credit in the Mortgage Market. World Development Report 2012. Building Institutions for Market. Washington, DC, The World Bank/ Oxford University Press.
Yamane, T. (1967). Statistics, An Introductory Analysis, 2nd Ed., New York: Harper and Row.