Effect of Information and Communication Technology Capability on Investment Among Financially Included Youths in Nyeri and Kirinyaga Counties, Kenya.

Abstract

Financial inclusion is broadly recognized as critical in reducing poverty and achieving inclusive growth. Through ICT, Kenya has achieved high levels of financial inclusion, making Kenya among the cited cases of successful ICT driven financial empowerment. Despite this expensive investment in ICT, the level of poverty and unemployment are still high among the youth. The purpose of the study was to find out whether ICT capability has effects on investment on financially included youth. The study population was Kenyan youth between 18 and 35 years from Kirinyaga and Nyeri Counties. The data was collected using a semi-structuredquestionnaire. Binary logistic regression analysis was conducted to find out whether predictors had effects on probability of undertaking investments. A test of the full model against constant only model was statistically significant, indicating that predictors as a set reliably distinguished International Journal of Economics, Commerce and Management, United Kingdom between investors and non-investors (chi square=21.855, p=.000 with df=3). Wald criterion demonstrated that ICT Usage (p=0.014) and Access to Financial services through ICT (p=0.000) had a statistically significant effect on probability to invest. ICT Knowledge (p=0.196) did not have statistically significant effect on investment. To benefit from ICT enabled financial inclusion, this study recommends enhancement of ICT capability among the youth.