Behavioral Economics in Development: Perspectives from Kenyan Low-Income Households

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@article{1708847,
      author = {Albert Kachero Oungo, Dr. Yasin Kuso Ghabon},
      title = {Behavioral Economics in Development: Perspectives from Kenyan Low-Income Households},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {8},
      number = {11},
      pages = {2153-2157},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1708847.pdf},
      abstract = {This study examines behavioral economics? applicability and significance in reducing poverty and enhancing low-income households? ability to make decisions in Kenya. The study challenges the conventional belief that economic agents are rational by examining how social variables, psychological biases, and cognitive limits impact financial and health-related choices. By focusing on three fundamental ideas, time inconsistency, present bias, and nudging, the study demonstrates how these behavioral inclinations impede long-term savings, health insurance enrollment, and planning. Based on theoretical understandings and empirical data from the Kenyan setting, the study shows how behaviorally informed interventions, such as commitment devices, default options, and targeted reminders, can encourage better financial decisions among Kenya?s vulnerable populations. The paper concludes that it is not only feasible but also crucial to include behavioral insights into policy design to create interventions that are in line with people?s real thoughts and behaviors, particularly for those who are economically vulnerable. The use of behaviorally-informed methods could be a game-changing catalyst for equitable development as Kenya pursues universal health care and inclusive growth},
      month = {May},
  }