EFFECT OF FINANCIAL LITERACY ON EMPLOYEES INVESTMENT DECISIONS AT KENYA PORTS AUTHORITY, MOMBASA KENYA
Abstract
The objective of this research was to establish the effect of financial literacy on investment decisions making among employees of Kenya Ports Authority. The target population was 326 staff working at KPA offices in Mombasa. A structured Likert scale questionnaire was used for data collection. The study also utilized secondary data. A pilot study was carried out to refine the data collection instrument. Data analysis was done with the help of Statistical Package for Social Science (SPSS) version 23. The findings indicated that an increase in the skills of finance by one unit would lead to a positive increase in investment decisions. Also an increase in the knowledge of debt management by one unit would lead to a positive significant increase in investment decisions. Further the results showed that an increase in savings knowledge by one unit would lead to a positive increase in investment decisions and that an increase in the knowledge of budgeting by one unit would lead to a positive increase in investment decisions. The study concluded that Kenya Ports Authority offerred financial training to employee oftenly. Further, the study concluded that KPA employees lacked adequate knowledge on debt management. The study finally concluded that KPA employees had a financial goal on a monthly basis. The study recommended that the employees of Kenya Ports Authority should be trained on how to manage their finances wisely. The study recommended that the management of KPA should educate employees on how to manage their debt in a realistic manner and understand the cost of their borrowing by use of financial knowledge in understanding the time value of money and its effect on the borrowings.
Key Words: Cash Management, Debt Management, Savings, Budgeting, Investment Decision Making
CITATION: Kamunzyu, B. I., & Kariuki, G. (2019). Effect of financial literacy on employees investment decisions at Kenya Ports Authority, Mombasa Kenya. The Strategic Journal of Business & Change Management, 6 (2), 640 – 657.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1132
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