Risk Attitude, Socio-Demographic Factors, and Betting and Gambling Behavior among Employed Youths in the Banking Sector in Kenya
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Date
2025-09
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Kenyatta University
Abstract
Betting and Gambling have increasingly become prevalent among employed youths in Kenya, particularly within the banking sector, raising concerns about financial stability and responsible behavior among professionals. While gambling is often perceived as a leisure activity, emerging patterns show that some individuals resort to taking personal loans, liquidating assets, or selling property to sustain gambling habits, resulting in financial distress. Notably, individuals not only lose money they have earned but also borrow and still incur further losses in their attempt to maintain gambling behavior. Youth aged between 18–35 years make up approximately 35% of the population and form a significant proportion of the workforce, particularly in urban sectors such as banking and finance. This study investigated the influence of risk attitude and socio-demographic factors—specifically gender, educational level, and economic status—on gambling behavior among employed youths in Kenya’s banking sector. Grounded in Prospect Theory and Expected Utility Theory, the study examined how individual risk preferences and socio-demographic attributes shape gambling decisions among financially literate populations. An exploratory research design was adopted, targeting bank employees aged 18–35 years. Primary data were collected through structured questionnaires and analyzed utilizing both descriptive and inferential statistics, including regression analysis. The results indicated that risk attitude had a statistically significant effect on gambling behavior (p < 0.05), leading to the rejection of the first hypothesis. Educational level also significantly influenced gambling behavior (p < 0.05), resulting in the rejection of the second hypothesis. Gender, however, was statistically insignificant (p > 0.05), and the third hypothesis was not rejected. Economic status was found to have a significant effect on gambling behavior (p < 0.05), leading to the rejection of the fourth hypothesis. The study concludes that risk attitudes, educational level, and economic status serve a critical role in shaping gambling behavior among employed youths in the banking sector, while gender does not significantly influence such behavior. It recommends that young professionals understand and manage their risk attitudes to strengthen risk management strategies, leverage educational opportunities for informed decision-making, and address economic pressures that influence gambling tendencies. The findings offer valuable insights for policymakers, financial institutions, and regulators in designing targeted interventions that promote responsible gambling and mitigate financial risks among youth in Kenya’s formal employment sector.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Finance) of Kenyatta University, September 2025.
Supervisor
1.Charity Njoka