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- ItemA pension model for the informal sector in Kenya(Strathmore University, 2021) Kariuki, Mercy WanjikuThe purpose of this research paper is to come up with a pension model for the informal sector in Kenya. We develop a pension model that uses pre-retirement mobile phone airtime expenditures through use of Bonga Points to accumulate the pension fund. We then determine the expenditure patterns experienced pre- and post-retirement and use these patterns to advise on the daily amount required to be saved above the current amount in order to. facilitate a comfortable postretirement life. The data utilized in this study was retrieved from primary and secondary sources. Inflation and interest rates data were retrieved from Kenya's Central Bank database. The mortality rates were retrieved from the World Health Organization and the life expectancy from World Atlas, Lancet and World Life Expectancy. Pre-retirement and post- retirement data were retrieved from a survey done in the informal markets in Kenya. The inflation and interest rates were forecasted using the Vasicek Interest Rate Model using MS Excel. The resl.llts show that an average individual working in the informal sector spends J approximately KShs. 6,130.77 pei· month for his/her livelihood. Due to inflation trends in the country, their expenses will increase in order to maintain the same standard of living during their retirement. Given the expenditure pre-retirement in that they will need to save KShs.754.30 per month, it will require them to be increase their mobile phone expenditure by KShs. 40 per day in order to raise an amount sufficient to sustain their lifestyle post-retirement.
- ItemImpact of mobile loan credit during the covid-19 pandemic in Kenya(Strathmore University, 2021) Oduor, Sandra OderaThis study sought to investigate the impact of mobile loan credit during the Covid-19 Pandemic in Kenya. The specific objectives included investigating factors fuelling mobile loan uptake during the pandemic and investigating the effects of the pandemic on loan repayment. A total of 352 participants from Buruburu were randomly selected to form the sample of the study. The response rate was 100% with majority of respondents falling in the age groups of 30 and below (53.41 %). A descriptive cross-sectional research design was adopted. The data was collected by using pretested, structured interview based questionnaires and analysed using SPSS version 20. The study established that employment amongst the youths is still a problem as the youths were the most borrowers with a percentage of more than 53.41%. The COVID 19 pandemic has made more Kenyans to borrow mobile loans as 42.90% of the respondents had never borrowed before the pandemic. This study recommends that the government should create more employment opportunities for the youths by investing in and promoting Jua Kali sector. This will reduce the dependence rate on mobile loans amongst the youths and negative CRB listing.
- ItemImpact of longevity risk on pension systems(Strathmore University, 2021) Nyambura, Malvin GitauAccording to the "2019 Revision of World Population Prospects" prepared by the Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, life expectancy has risen from 60.26 in 201 0 to 66.70 in 2019. This increase in life expectancy is attributed to improved healthcare facilities, proper education, diversification in agricultural production and an increase in living standards. The improvement in life expectancy is positive news but it results in increased longevity risk. Longevity risk is the risk that individuals will have longer lifetimes than expected. In pensions, this is the risk attached to the increasing life expectancy of pensioners and policyholders, which will result in higher pay-out ratios than expected for many pension funds. If gains in life expectancy could be forecasted and factored in retirement planning, then the effect of longevity risk could be minimal and thus negligible but improvement in life expectancy and mortality are uncertain. Thus, longevity risk is related to the uncertainty surrounding future mortality and life expectancy.
- ItemThe impact of accessibility of mobile loan applications on the level of savings among Strathmore university students.(Strathmore University, 2021) Kimaku, Martha WanjiruThis study looks into the impact of accessibility of mobile loan applications on the level of savings among Strathmore University students. The continuous borrowing culture introduced by mobile loan applications is discussed as being a key factor that inhibits saving efforts ofthe youth. The life cyc le hypothesis model coupled with the technology adoption model wilt give this study an insight into the saving and borrowing culture of the youth. How then does endless borrowing prevent the youth fi·om creating good saving habits? With regards to borrowing and saving amongst individuals differ as a result of behavior, knowledge and mindset. The study therefore intends to investigate how number of mobile loan apps on each Strathmore University student's phone influences the level or savings, how the existence of knowledge about the mobile loan applications influences the level or savings among Stratlunore University student and how the level of usage of mobile loan applications impacts the level of savings among Strathmore University students. A descriptive study design was used whereas the estimated sample size was 384 students but only 100 respondents took part in the survey. The study employed a voluntary sampling method by use of online survey which was clone by the Strathmore University students order to investigate the factors that correlate students' saving and borrowing patterns using mobile applications. A multiple linear regression model was applied using the STAT A software to execute the analysis. Results revealed that there was a very weak correlation between quantity, knowledge and fi-equency of access fi·om mobile loan applications and the level of savings among Stratlunore University students. In addition, the more a student wns equipped with the knowledge of loan apps decreased a chance for them to save.
- ItemInsurance policies for fertility treatments(Strathmore University, 2021) Kipkorir, Ivy ChebetIn Kenya there are over 3 million people who suffer from infertility. According to the Nairobi IVF fertility center, fertility treatments can range anywhere from Ksh 10,000 to Ksh 480,000 per cycle. This is expensive for the average Kenyan and as a result it denies deserving couples the opportunity to bear a child. Various studies have also shown that infertility also affects the mental health of many couples with one study even claiming that infertility has the same psychological effects with cancer patients. Insurance companies however have the ability to assist these couples in offsetting some of the costs of seeking treatments for infertility treatments. This study therefore focuses on pricing an insurance policy for fertility treatments. When pricing the policy, the method used involved calculating the standard risk premium followed by getting the office premium. This study goes on to find the premium based on various demographic factors that may affect infertility such as age, education, occupation and marital status