Abstract: Pension fund is a pool of resources contributed by the employees with the aim of having enough resources to cater for their needs after retirement. Therefore, pension fund needs to be invested to meet the aim of the contributors. However, the financial performance of pension funds in Kenya seems wanting thus raising doubts whether they can be able to achieve their primary objective. The pension should provide an adequate replacement income for the remaining life of the member or partner and remove the risk that the member outlives the resources. The poor performance of pension schemes jeopardizes this role, and hence the retired people may not be able to have a high degree of retirement income security. Due to the poor performance of pension schemes in Kenya, it was necessary to conduct a study to establish the determinants of this poor performance. It is in this line that the current study sought to analyze the determinants of financial performance on pension schemes in Kenya. The study specifically determined the effect of access to capital, the impact of firm size, retained earnings and leverage on the financial performance of Pension schemes in Kenya. The theoretical foundations of the study are the modern portfolio theory (MPT), finance theory and liquidity theory. A descriptive research design was used for the study. The target population for this study was all the registered occupational pension schemes in Kenya which according to the Retirement Benefits Authority report are 818 by the end of the year 2016. Random sampling method was used to come up with the sample size since the population was heterogeneous. The sample size for the study was 261 occupational retirement benefits schemes registered under the Revenue. The study used secondary data. Correlation analysis was used to establish the association between the study variables. A regression model was used to establish the relationship between the study variables. A multiple linear regression models was used to test the significance of the determinants of financial performance on pension schemes in Kenya.
Keywords: Collateral, Credit Guarantee Scheme, Contribution density, Financial Performance, Pension Fund.
Title: Determinants of Financial Performance on Pension Schemes: A Case of Kenya Retirement Benefits Authority
Author: Faustin Okhalo Were, Prof. Mike AmuhayaIravo, Muchelule Yusuf Wanjala
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
