The Role of Corporate Communication in Promoting a Savings Culture Among the Youth in Nairobi County: Stima Sacco Case Study

Abstract

Savings, and by extension Saccos play a very vital role in the global economy. Saccos exist for many reasons such as providing affordable funding to their members, create employment, source of income to the government in form of taxes among others. The aim of this study was to find out how Corporate Communication can be used to promote a Savings culture, with the youth in Nairobi County being the sample size and guided by Stima Sacco as the case study. The objectives of the study were to establish the savings habit among the youth in Nairobi County, examine Corporate Communication channels and strategies used in the promotion of a Savings Culture at Stima Sacco, establish the impact of Corporate Communications in enabling financial literacy and instilling a Savings Culture and to identify the youths most preferred Corporate Communication channels. The study was guided by two theories; Agenda Setting Theory and Goal Setting Theory and had study population was 148,500 youth members of Stima Sacco. The study adopted a Mixed method research design and Systematic Sampling technique where questionnaires and interview guides were the main Data collection tools. The findings of the study were subjected to descriptive statistics to give meaning to the study and confirmed that the respondents had alternative saving channels such as mobile banking, banks/micro-finances and even accounts in other Saccos. The study also realized that Stima Sacco uses Verbal and written communication strategies, which also emerged as most effective strategies in the promotion of a Savings culture. The study noted the huge potential and impact of Corporate communications in financial literacy, and ultimately the promotion of a Savings culture. The study recommends that financial literacy classes be introduced and be part of the education curriculum in Kenya and that the youths should be motivated enough to save. It also encourages corporates to harness the power of social media in communications and embrace the viability of adopting Savings advocates and/or champions to take advantage of Interpersonal communication which youths prefer and trust compared to other forms of communication