ISSN 2348-3156 (Print) International Journal of Social Science and Humanities Research ISSN 2348-3164 (online) Vol. 10, Issue 4, pp: (148-167), Month: October - December 2022, Available at: www.researchpublish.com
DETERMINANTS OF COST OF LIVING OF THE HOUSEHOLDS IN KAJIADO NORTH SUB-COUNTY Wycliffe Muma Bosire1, Dr. Jane Queen Omwenga2 12
Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya DOI: https://doi.org/10.5281/zenodo.7183190
Published Date: 10-October-2022
Abstract: This research was carried out to examine the determinants of the cost of living of the Households in Kajiado North sub county. It attempted to answer: What is the influence of utilities on the cost of living of the Kajiado county residents? What is the influence of the household income on the cost of living of the Kajiado county residents? How does inflation affect the cost of living of the Kajiado county residents? How do taxes influence the cost of living of the Kajiado county residents? The study reviewed theories that are relevant to the study. These theories included the utility choice theory, the cost-push theory and the market-power theory of inflation. This study was based on a qualitative and quantitative research method, using the descriptive survey design, to depict the participants in an accurate way. Information was collected using a questionnaire distributed to the sample of 399 respondents, randomly selected from the clusters in the target population, representing the entire population of 138,561 households. The collected data was critically analyzed for easy evaluation and presentation, using means, standard deviations, percentages bar-graphs and tables. The results indicated that goods and services for were available in timely manner when needed in nearby locations in their preferred value and satisfaction was experienced. Non availability of enough income determined cost of living; unemployment affected their cost of living and household income is mostly sufficient to cater for their basic needs only. There was a steady rise of prices of goods and services consumed; this affected their purchasing power and in turn reduces their spending power. There was a perception that taxes don’t improve the household’s cost of living, taxes reduces household investments and high taxation demand of goods and services consumed. The study recommends for an increase in the scope for future studies to cover development of concepts that can have a lasting effect in creating an environment that will sustain manageable cost of living Keywords: Household Income, Utilities, Inflation, Taxes, cost of living.
1. INTRODUCTION 1.1 Background of the study The cost of living as defined by Albouy et. al (2016) refers to be the monetary value of those consumers’ goods and services which are in fact consumed in the course of a certain period of time by an average family belonging to a given stratum of a population. This consumption defines the general state of the want-satisfaction which the researcher terms as the ‘standard of living’ of the family in question. It is a useful measurement, in an index format, that allows comparison of expenses between locations and over time. The consumption level is determined by a wide range of factors like the utility costs, taxes available, inflation, insurance cover required and even the household level of earnings. All these impacts the amount of income that will be available to enable them do the consumption.
Page | 148 Research Publish Journals