Abstract:
This study examined the moderating effect of age in the relationship between debt literacy and indebtedness of formal sector employees in Kenya. The study showed that age has an effect on the amount of debt held by individuals. Research also found level of debt literacy particularly low among youth and elderly. The study using hierarchical moderated multiple regression (MMR) models found that the coefficients for interaction term for debt literacy and age of employees had significant moderating effect. Further, the study revealed the moderating effect of age was positive and significant for Debt Service Ratio (DSR) on one hand and negative and significant for Debt Income Ratio (DIR) on the other.The young and the elderly were found debt illiterate. The government and other institutions should roll out financial education programs
