BOARD LEADERSHIP AND PERFORMANCE OF PENSION SCHEMES IN KENYA
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Abstract
The topic on Governance has become central to many organizations. The debate in this area has extremely grown both nationally and internationally after a series of recorded scandals that have led to poor performance of pension schemes. This study explored the influence of board leadership and performance of pension schemes in Kenya. To achieve the set objectives; To establish the influence of Board leadership on Performance of pension schemes in Kenya: To examine the moderating role of Regulatory framework on the influence of board leadership and performance of pension schemes in Kenya. The study developed research hypotheses and was statistically tested at α = 0.05. The theories on which the study is hinged is Agency theory. The study adopted a descriptive research design, and used both qualitative and quantitative approaches. The study looked at a population of 1,246 regulated pension schemes in Kenya. Simple random sampling method was used to sample 384 Pension schemes officials who are directly involved with governance mechanism and performance of pension schemes. The study used open-ended and closed-ended questionnaire as the main mode of data collection. Primary data was collected using structured questionnaires. Secondary data was collected from institutional documents, Ministry of Finance publications, Retirement Benefits Authority (RBA) and relevant publications in referred journals. The collected data was edited, coded and entered into SPSS software for analysis. Data was analyzed using descriptive and inferential statistics. In particular, Regression Analysis was used to investigate the relationships between hypothesized variables. Analysis of Variance (ANOVA) was also used to investigate whether independent variables have a combined effect on the dependent variable. The data was analyzed through the use of descriptive statistics. ANOVA, t-test, Pearson correlation, p- values and coefficient of determination was used in the data analysis. Data was presented using frequency tables, figures, graphs and pie charts. The study found out that effective governance mechanisms are pivotal for the performance of pension schemes in Kenya, ensuring efficient and ethical management of pension funds in the best interests of scheme members. Transparency, including regular financial reporting, fosters trust among members and stakeholders, ultimately bolstering the appeal and stability of these schemes. Furthermore, the regulatory framework and oversight from bodies like the Retirement Benefits Authority (RBA) play a critical role in upholding the integrity and stability of these schemes by establishing governance and investment standards.
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