Pension fund management strategies in Kenya and their impact on the average return of the fund

Abstract

The pension industry in Kenya has been characterized by rampant mismanagement and misappropriation of funds that led to underperformance. The management strategies employed by the Kenyan fund managers have been questioned and therefore been a major issue of concern. In an effort to establish the best management strategy that maximized returns of the fund, the study sought to establish the management strategies employed by the Kenyan fund managers, the predominant strategy, its effectiveness and challenges. The target population was all pension fund managers, registered with the Retirement Benefit Authority (RBA). The data collected through questionnaire was analyzed using descriptive statistics with the aid of Statistical Package of Social Sciences (SPSS) and results presented by use of frequency tables and pie charts. Microsoft Excel was also used in the determination of averages and weighted averages. The study found out that the performance of hybrid managers was superior. Hence, its recommendation for adoption in the management of pension funds in Kenya. The study makes recommendations to investors, fund managers, RBA, and the security markets officials. The study contributes to the existing literature on pension fund industry in Kenya while suggesting on further researchable areas, to form basis for further scholarly work.