Strategy Implementation Practices and Perfomance National Health Insurance Fund, Nairobi City County, Kenya
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Date
2025-05
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Kenyatta University
Abstract
Despite growing emphasis on performance in Kenya’s public sector, strategy implementation challenges continue to undermine organizational effectiveness. The National Health Insurance Fund (NHIF), established under Act No. 9 of 1998 to provide medical insurance to its members and their dependents, faces persistent issues including operational inefficiencies, delayed reimbursements, and technology gaps, all of which hinder its ability to deliver on its Universal Health Coverage mandate. The Fund’s core mandate is to provide social medical insurance cover to all its members and their declared dependents (spouse and children). But according to National Health Insurance Fund Performance Report 2017- 2018, the National Health Insurance Fund has continued to implement social health strategies with a view to achieving Universal Health Coverage for the benefit of all Kenyans. The aim of the study was to examine the strategy implementation practices influencing the performance of National Hospital Insurance Fund in Kenya. The specific objectives of the study included: evaluating the effect of technological innovation on the performance of NHIF in Kenya; establishing the effect of strategic resource planning on the performance of NHIF in Kenya; evaluating the effect of strategic leadership on the performance of NHIF in Kenya; and determining the effect of strategy monitoring on the performance of NHIF in Kenya. The study was grounded on the Balanced Scorecard model, Resource Based View theory, Diffusion of Innovation theory and Contingency Theory. The study employed a descriptive research design. The study population consisted of 411 employees, managers, and patients from the National Health Insurance Fund headquarters. Semi-structured questionnaires were used to collect primary data, and a pilot test was performed to assess the reliability and validity of the questionnaire. Cronbach’s Alpha coefficient was employed to determine the reliability of the research instrument. Data analysis involved the use of descriptive statistics, supported by the Statistical Package for Social Sciences (SPSS), to calculate frequencies, percentages, means, and standard deviations. A Multiple Linear Regression model was used to determine the effect of independent variables on the dependent variable. The study findings revealed that technological innovation, strategic resource planning, strategic leadership and strategy monitoring had positive and significant effects on the performance of the National Health Insurance Fund in Kenya. This study concluded that strategy implementation factors, including technological innovation, strategic resource planning, strategic leadership, and strategy monitoring, play a significant role in firm performance. The study recommends that the management of the organization should emphasize strategy implementation to improve the performance of their organization. Additionally, continuous investment in technological innovation, effective strategic resource planning, strategic leadership development, and robust strategy monitoring practices should be prioritized to enhance overall organizational performance
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University, May 2025
Supervisor;
1.Videlis Njeri Njuguna