An Evaluation of Pension Schemes and Provident Funds Investments Portfolios in Kenya

Abstract

The purpose of a Pension Plan and/or Provident Fund is to provide income when a person retires from gainful employment. A growing number of people are interested in pensions management especially as economic and political events continue drastically to influence financial decisions. Yet many people in Kenya do not have a basic understanding of pensions management situation in the country or the importance of prudent management or pension scheme until after retirement. At this stage, many individuals find it difficult to support themselves and end up living miserably. Successful pension fund management is about consistent long-term performance. This in tum. demands the ability to spot and exploit investment opportunities at every stage or the economic cycle. This is what we are lacking and can only be achieved if our style depends on strong locus leadership, a discipline framework for investment managers to work within and a top down, market driven approach to investment vehicle selection. The Government should also promote and facilitate the development or pension schemes that are professionally managed..............................................