Retirement Fund Characteristics and Financial Performance of Pension Schemes in Kenya.

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dc.contributor.advisorJohn Mungai.en_US
dc.contributor.authorOndieki, Nelly Winny Nyanchama
dc.date.accessioned2022-09-16T12:35:13Z
dc.date.available2022-09-16T12:35:13Z
dc.date.issued2022
dc.descriptionA Thesis Submitted to the School of Business in Partial Fulfilment of the Requirements for the Award of Master of Science Degree in Finance of Kenyatta Universityen_US
dc.description.abstractPension schemes play a vital role in how individuals plan for retirement. Saving for retirement is key as it determines how one’s life is after they cease being employed. Individuals should plan to save for their retirement once they are employed to avoid situations where they have little income to support themselves. The performance of pension schemes is highly momentous noting the associated value to members and the country at large. Pension schemes have been fluctuating over the past ten years and thus could be attributed to the inflation and other crises experienced in the country. This has led to fluctuations in the return on assets received by the schemes as some years have had negative returns after investments prompting the funds to issue minimal benefits. In addition, some of the last years have experienced negative returns which creates a worrying trend as most of the individuals save for retirement to receive better benefits. Several factors such as the financial crisis in 2008 had a negative impact on the returns realized and the negative results influenced the benefits. It is key for the pension schemes to invest in worthy investments for them to maximize on the returns they make. It is in those regards that a study touching on the pension fund performance is highly imperative in providing critical insights regarding how benefits can be certainly maximized. Although empirical studies have be conducted in other parts of the world showing how retirement funds characteristics have an impact, effect to the test the same in Kenya is still scanty. This study sought to examine the effect of retirement funds characteristics on the financial performance of pension schemes in Kenya. Specifically, the study sought to establish the relationship between asset allocation, fund size, fund design plans and the social coverage span. The relationship was proposed to be moderated by the retirement benefits act regulations. This study used a descriptive study design. The population comprised of all the 1342 registered pension schemes and a purposive sampling was conducted to select schemes that have been consisted for the last ten years. 31 schemes were selected which had consistent data for the past 10years. Secondary data used which was sourced from the Retirement Benefit Authority and the company’s websites and the results presented using SPSS version 24. The study findings were presented in tables for easy interpretation. The results showed that asset allocation, fund size, and fund design plans had a positive impact on the financial performance of the pension schemes. However, social coverage span had a nonsignificant effect on the financial performance of pension scheme. The results also showed regulations had a significant moderation effect on the relationship between asset allocation, fund size, and fund design plans and financial performance of pension schemes. However, it had a negative effect on relationship between social coverage span and financial performance of pension schemes. The study recommended pension schemes should efficiently invest their assets, adopt the use of defined contributory plans, and increase the value of their funds as a way of increasing their returns.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/24248
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectRetirement Funden_US
dc.subjectCharacteristicsen_US
dc.subjectFinancial Performanceen_US
dc.subjectPension Schemesen_US
dc.subjectKenya.en_US
dc.titleRetirement Fund Characteristics and Financial Performance of Pension Schemes in Kenya.en_US
dc.typeThesisen_US
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