Abstract
Financial literacy plays critical role in ensuring that one is equipped with knowledge and skills needed tomanage finances which eventually help companies realize financial stability and help management makeinformed financial decisions. The objectives that guided the study includes: to evaluate the effect of rationalfactors literacy, financial analytical skills, irrational factor management skills and past performanceawareness on investment decisions of food and beverage manufacturing companies Kenya, the lastresearch objective was to assess the moderating role of managerial tenure on the relationship betweenfinancial literacy and investment decisions of food and beverage manufacturing companies Kenya. Thestudy was guided by the decision theory, Upper Echelons Theory and Prospect theory. An explanatoryresearch design was employed. The study found that financial literacy significantly affects the investmentdecision. The results demonstrated a significant positive impact of rational factors (β=0.245, p=0.00),financial analytical skills (β=0.607, p=0.000), irrational factors management (β=0.379, p=0.000), pastperformance management (β=0.319, p=0.000) on investment decisions. The study concluded that Enhancingfinancial literacy can lead to smarter investment decisions and organizational success.
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