Financial Literacy and Debt-Related Stress among Motorcycle Taxi Riders in Lang’ata Constituency, Nairobi, Kenya

Dorothy Monyangi Nyangenya, Mulenga Obino & Anne Mbugua
Faculty of Arts and Social Sciences
Department of Counseling Psychology
The Catholic University of Eastern Africa, Nairobi, Kenya.
Email; dorothymonyangi@gmail.com

Abstract: This study examined the relationship between financial literacy and debt-related stress among motorcycle taxi riders in Lang’ata Constituency, Nairobi County, Kenya. It was motivated by the growing reliance on short-term borrowing and the financial vulnerability created by irregular income, high operating costs, and wider access to digital credit. The study examined budgeting behavior, saving behavior, financial planning practices, and debt management practices in relation to debt-related stress. It was guided by the Theory of Planned Behavior, Behavioral Finance Theory, and the Transactional Model of Stress and Coping. An embedded mixed-methods design was adopted. A sample of 422 riders was determined using Cochran’s formula and selected through cluster and simple random sampling. Data was collected using structured questionnaires, 12 semi-structured interviews, and three focus group discussions. Quantitative data were analyzed using frequencies, percentages, means, standard deviations, Pearson correlation, and regression analysis, while qualitative data were analyzed thematically. Debt prevalence was 86.7%, with school fees and household expenses accounting for most current debt. Overall debt-related stress was high (M = 3.87), and debt management stress had the highest construct mean (M = 3.91). Budgeting behavior was positively related to budgeting stress (r = .203, R² = .041, p < .001). Saving behavior (r = -.197, R² = .039, p < .001) and financial planning (r = -.307, R² = .094, p < .001) had significant protective relationships with stress. Debt management practices were positively related to debt management stress (r = .231, R² = .053, p < .001), reflecting reactive management under pressure. The study concludes that financial access has outpaced practical financial capability among informal transport workers. It recommends context-specific financial planning, emergency savings, responsible credit products, and integrated financial and psychological counselling.