Impact of financial wellness on mental well-being among urban families: a case study of Kiambu township, Kenya

Abstract

This study examined the association between financial wellness and mental well-being among urban households in Kiambu Township, Kenya. Financial instability has increasingly emerged as a significant factor contributing to psychological distress, driven by the high cost of living, urbanization, inflation, and economic uncertainty. The study aimed to determine the level of financial wellness, identify major financial stressors influencing mental health, assess the mental well-being of urban families, and explore the coping strategies they employ to manage financial pressures. Guided by the Family Stress Theory and the Conservation of Resources Theory, the study adopted a descriptive cross-sectional research design targeting 392 households, of which 348 responded, representing an 88.8% response rate. Data were collected using structured questionnaires and analyzed through descriptive and inferential statistics, including Pearson correlation and multiple regression analysis. The results showed that mental well-being had a significant negative relationship with financial wellness (r = -0.466, p < 0.01). This means that better financial management and stability are associated with lower emotional distress. Additionally, mental well-being was positively correlated with financial stressors (r = 0.756, p < 0.01), with the strongest predictive effect (b = 0.693, p = 0.001). This indicates that greater financial struggles, such as debt, income volatility, or unexpected costs, lead to worse psychological outcomes. The results also showed that coping strategies are positively and significantly related to both financial stressors (r = 0.423, p < 0.01) and mental well-being (r = 0.484, p < 0.01). This suggests that households experiencing higher financial stress tend to engage more frequently in coping strategies, which also increase in intensity with greater perceived psychological strain. Coping strategies, including expenditure control, borrowing, prayer, and family discussions, were found to play a moderating role, helping families adapt to financial strain, though they were largely reactive in nature. The study concludes that financial stability and psychological health are closely interconnected, with financial strain remaining one of the strongest predictors of emotional distress among urban families. It recommends promoting financial literacy, enhancing access to affordable credit, and integrating financial counseling with mental health support programs to strengthen resilience and overall well-being. The findings contribute valuable evidence for policymakers, financial institutions, and community organizations in designing interventions that address both the economic and psychological dimensions of urban family life in Kenya, particularly in the unique context of Kiambu Township.