| dc.description.abstract | Pension funds are the principal sources of retirement income for millions of people in the
world. Pension funds are also important contributors to the Gross Domestic Product
(GDP) of countries. Funded pension systems have in the recent past gained popularity
since they contribute to the economic growth of countries worldwide through direct
contribution to the GDP and acting as consumers of financial services. Local studies that
have been done include firm efficiency differences, and distribution in the Kenyan
manufacturing sector, which used firm size as a study variable. In Kenya, no study has
endevoured to determine the effects of firm size on financial performance of pension
schemes. This study sought to fill the existing research gap by determining the effects of
firm size on financial performance of pension schemes in Kenya, by trying to answer the
following question: What are the effects of firm size on financial performance of pension
schemes in Kenya? The objective of this study was to determine the effects of firm size
on financial performance of pension schemes in Kenya, and intends: to determine the
effect of market share; to the assess the effect of the number of employees; to establish
the effect of book assets; to establish the effect of the number of branches and to establish
the effect of retained earnings on the financial performance of pension schemes in Kenya.
The research was conducted through a descriptive research design. The target population
for this study was 30 occupational pension schemes in Kenya. The research was carried
out using secondary data. The data was collected from annual reports and financial
statements. These included aspects from the published annual reports, book value, and
equity of institutions to be surveyed. The data collected was analyzed by use of Microsoft
Excel 2010 and Statistical Package for Social Sciences (SPSS) Version 20. A
multivariate regression model was applied to determine the relative importance of each of
the five variables with respect to the role of firm size on performance of pension schemes
in Kenya. The study concludes that that there has been significant market volatility as
evident from the NSE index, Treasury bill rate movement and offshore indices. The study
recommends that RBA should ensure all schemes, particularly those with segregated
investments, have up to date investment policies and that the strategic asset allocation is
included within the investment policy. It also recommends compulsory saving for all in
employment, and the introduction of a flexible scheme for those in the informal sector,
who can make periodic payments. It also recommends the undertaking of a
comprehensive reform that requires a coordinated strategy and a significant amount of
ground work in terms of evaluation of policy and implementation choices that would lead
to enactment of enabling legislation, building of institutional capacity and sensitization of
approved reform programmes. | en_US |
