Gender Differences in Financial Literacy: An Empirical Study of Professionals in Nairobi, Kenya, Using the Organisation for Economic Co-operation and Development (OECD) Toolkit

Financial literacy shapes money-related decisions such as spending, saving, borrowing and investing. It impacts how individuals participate in financial markets and contributes to financial inclusion and economic development. However, prior global research indicates that financial literacy levels tend to be low, particularly among women. Kenya’s FinAccess survey also revealed a gender gap. This study evaluated financial literacy levels of professionals in Nairobi, Kenya, and examined the differences across genders. Primary data was collected using an online questionnaire testing individuals’ financial knowledge, financial attitude and financial behaviour. The questionnaire was based on the financial literacy measurement toolkit by the OECD/INFE (Organisation for Economic Co-operation and Development/International Network on Financial Education). To be considered financially literate, respondents needed to achieve a minimum score of 70 out of 100 points on OECD’s questionnaire. A sample size of 310 respondents was achieved. Data was analyzed using descriptive statistics and inferential statistics including t-tests, correlation analysis and regression analysis. With respect to overall financial literacy, this study found that the average financial literacy score of professionals in Nairobi was above 70 points. Seventy percent of respondents met or exceeded OECD’s minimum target score of 70 points, implying that the majority are financially literate. Regarding gender differences, there was no statistically significant difference in overall financial literacy between genders, although women who were surveyed scored higher on overall financial literacy than men. However, significant gender differences emerged in the subcomponents of financial literacy. This study found that women professionals in Nairobi have better financial attitudes than men, indicating their higher tendency to save for the future. The difference in financial attitudes was statistically significant. Men scored higher than women on financial knowledge, and the difference was statistically significant. Although women scored higher on financial behaviour than men, the difference was not statistically significant. This study identified key gaps in financial knowledge, financial behaviour and financial attitudes for Nairobi professionals, and made recommendations that are important for other researchers, regulators, market players developing investment products and employers offering financial education programs.