Role of mass media in creating awareness in financial literacy for pension preparedness among informal sector workers in Starehe Subcounty, Nairobi

Abstract

The role of mass media in promoting financial literacy is crucial in enhancing pension preparedness by providing accessible, educational content that empowers individuals to make informed financial decisions for their retirement in Kenya is limited. The majority of studies on financial literacy and pension preparedness have ignored the role of mass media. The study investigates the implementation of financial literacy campaigns in Kenya, their targeting of informal sector workers, and the level of pension preparedness among these workers; and to assess the informal sector workers’ perception of the role of mass media in their financial literacy for pension preparedness. The informal sector in Kenya, which constitutes a significant portion of the workforce, is grappling with a pressing issue of old age dependency. The study would benefit various stakeholders, including media houses, National Social Security Fund, Retirement Benefits Authority, insurance firms, Ministry of Education, informal sector workers, and development communication scholars. The study was anchored on Agenda Setting and Framing theories. Adopting the descriptive survey design, the study purposively targeted Jua Kali mechanics to represent the informal sector, owing to their prevalence across the country. The study was purposively conducted in Starehe Sub-County in Nairobi County due to its high concentration of Jua Kali mechanics that operate the motor vehicle repair industry. The total number of the target population was 2,134 respondents, using Yamane formula, yielded a sample size of 337 distributed across the four wards under Starehe Sub-County by clustered random sampling. Data was collected using a semi-structured questionnaire to gather quantitative information of the study and computed by use of quantitative approach including descriptive and inferential statistics. Results indicated that financial literacy campaigns (β =.112, Sig. = .05); informal-sector focus (β =.525, Sig. = .000<.05); and perceived role of mass media (β =1.222, Sig. = .000<.05); had a positive and significant effect on the level of financial literacy. The study reveals that financial literacy campaigns, the focus of mass media campaign messages to the informal sector, and their perception of mass media significantly impact pension preparedness thus recommending that pension firms in Kenya should use mass media campaigns to increase financial literacy among informal sector workers, particularly those with low financial status.