Browsing by Author "Kamande, Mercy Njeri"

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    Income Inequality and Its Implications on Households Consumption, Investment and Financial Inclusion in Kenya
    (Kenyatta University, 2024-05) Kamande, Mercy Njeri
    Across the world, nations face unique challenges in the quest to deal with the problem of income inequalities. Some developing countries have the largest disparities in income distribution. In Kenya, inequality in income is a major challenge. The inequality index is about 0.416, with considerable discrepancies in education, consumption, investment, employment, and agricultural sectors as well as financial accessibility and availability. Inequality in income distribution has facilitated reduction in access of quality education, investment, consumption and financial access by households in the economy. The main focus of this study is to determine the effect of income inequality on household consumption patterns, investments and financial inclusion in Kenya. The study employed; non experimental research design with time series data for a period 1990-2021 for the variables: household’s investment, consumption, government expenditure, wealth endowment, land ownership, inflation rate, population size, domestic credit, level of education and income inequality in the Country. Data analysis was achieved through regression analysis; the Auto regressive Distribution Lag (ARDL) method was helpful to estimate the parameters in the equation. The study found that income inequality proxy by per-capita income has a negative and significant effect on household’s investment, consumption, financial inclusion in Kenya. The study recommended that government should enact policies to ensure even distribution of income to reduce inequality across the country thereby enhancing household’s investment, consumption and financial inclusion. This finding is very useful for the national government, sub-national governments, and other researchers as an insight to design long-term solutions to equality in income distribution to households. This is in line with the constitution of Kenya (2010), equality distribution of income for all and also in line with the United Nations sustainable development goals number one and two; no poverty and hunger.