A survey of factors influencing liquidity of occupational pension funds in Kenya
Abstract
The research involves an investigation into the factors that influence liquidity of
pension funds in Kenya and challenges faced by fund managers in ensuring
liquidity of the pension funds. The· information was obtained using a
questionnaire administered to investment managers of the fund managers
registered with Retirement Benefits Authority (RBA). Most (84%) pension funds
managed by fund managers are Defined Contribution (DC) Plans because they
are easy to administer and manage as they require less actuarial valuations and
risk is borne by members and not the sponsor.
The results identified the factors that influence liquidity of pension funds in Kenya
as investment return, regulatory bodies, early retirements, actuarial assumptions
among others. The biggest challenge faced by fund managers currently in Kenya
was that of retrenchments/redundancies. Other challenges include inflation,
unstable stock market and low yielding investments.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
School of business,University of Nairobi