The Effects of financial capability on financial well-being among National Police Service Commission employees moderated by demographic factors

Abstract

Financial well-being is the aptitude to meet financial responsibilities, attain independence, and ensure long-term stability, is essential for employees' welfare and productivity. Within the National Police Service, financial instability among employees has been linked to low financial education, limited access to financial resources, and poor financial behaviors. The primary goal of this research was to evaluate the effect of financial capability on the financial well-being of employees working in the National Police Service Commission in Nairobi County, Kenya. The specific objectives were; to examine the effect of financial education on financial well-being, to determine the effect of financial behavior on financial well-being, to assess the effect of financial access on the financial well-being, to explore the impact of financial attitude on the financial well-being and to examine the moderating effect of demographic factors on the relationship between financial capability and financial well-being. The study was anchored on Financial Theory, the Theory of Planned Behavior, and Social Learning Theory. It adopted a descriptive research design under a positivist paradigm. Data was collected via structured questionnaires. Data was analyzed using both descriptive and inferential statistics. The findings revealed a strong relationship between financial capability and financial well-being, indicating that financial education, financial behavior, financial access, and financial attitude collectively explain the variation in financial well-being. Financial education was identified as a significant driver of informed decision-making, while financial behavior such as saving, budgeting, and debt management strongly influenced financial outcomes. Financial access, particularly to credit and savings tools, and positive financial attitudes contributed meaningfully to financial well-being. Moreover, demographic factors moderated the relationship between financial capability and financial well-being, indicating that age, education, rank, and income levels influence how individuals benefit from financial resources and skills. A key implication of these findings is the need for the National Police Service Commission to develop structured financial education programs and personalized financial wellness initiatives. Policymakers should consider integrating financial capability development into national financial inclusion strategies and ensure access to digital financial tools tailored for public servants. The study was limited in the consideration of demographic factors with indicators chosen being age, income level, gender and education level. Future research should consider a wider scope of demographic factors. Key Words: Financial Capability, Financial education, Financial Behavior, Financial Access, Financial Well-being.