Explaining rural household financial health: Evidence from Kenya

Abstract

This paper uses binary logit model to estimate rural Kenya household financial health. The data used in this study are taken from Kenya financial access household survey 2019. The estimated results from logit model show that social-economic factors significantly explain rural Kenya financial health. Specifically, rural Kenya financial health is positively influenced by education level, wealth, joint financial decision, income, pension and national health insurance fund uptake. On the other hand, individuals who are low-income earners and are excluded from national health insurance fund and pension schemes are more likely to be financially unhealthy. Financial access, education level, wealth and joint financial decision significantly explains the variation in the financial health among women. Further, education level, wealth, financial decision, income, national health insurance fund uptake, and pension usage significantly contribute to the financial health of the youths. The study recommended increased financial access, literacy campaigns, universal health coverage among the households.