STRATEGIC MANAGEMENT PRACTICES AND PERFORMANCE OF INDIVIDUAL PENSION PLANS IN KENYA

Abstract

This study explored the effect of strategic management practices on the performance of Individual Pension Plans (IPPs) in Kenya. Strategic management practices refer to systematic approaches organizations use to realize long-term objectives and improve performance. In the context of IPPs, these include investment diversification and resource allocation. Despite notable growth in Kenya’s pension industry, performance challenges persist due to poor governance, low coverage, and ineffective fund administration. This study examined how strategic practices influence fund performance. A quantitative research design was employed. The target population comprised all 49 IPPs registered with the Retirement Benefits Authority (RBA) as of 2024. The study targeted investment and risk managers yielding 98 valid responses. Primary data were gathered using structured questionnaires. Data analysis employed descriptive and inferential statistics using SPSS Version 27. The findings showed a statistically significant positive correlation between each strategic management practice and the performance of pension plans. Investment diversification (β = 0.411) and resource allocation (β = 0.369) were both significant at p < 0.05. The study concludes that strategic management practices have a substantial impact on the performance of Individual Pension Plans (IPPs) in Kenya. The findings highlight the need for fund managers to adopt holistic strategies that enhance governance, efficiency, and sustainability.