| dc.description.abstract | This study exammes pension funds investments in Kenya with special
reference to the potential role that this sector can play in financing housing
production especially for members of the pension fund. Pension funds are
known to accumulate huge sums of money. Most of this money lies idle until
pensioners retire. The accumulated returns from the investments of these
funds are by then amounting to millions of shillings. On the other hand, most
of the pension fund contributors live in poor environments, are unable to own
houses and are subjected to more suffering after retiring. Pension funds in
Kenya have thus invested negligible amounts into housing, even less in
housing for their members.
Given the importance of housing as a socio-economic good and the many
problems existing in the housing sector, this study set out to seek ways in
which pension funds in Kenya can be. applied as an additional source of
finance for housing. The study examines the stocks of accumulated funds held
by and the investment portfolios of the three case studies of NSSF, East
African Industries and University of Nairobi. This study also established the
proportion of the assets that these funds have invested in housing. Views of
members of these funds were sought in order to establish their preferences on
how their funds are managed and invested.
To obtain the required information, the researcher conducted oral interviews
and administered questionnaires to the fund managers of the case studies.
Official records like annual reports of accounts of the Funds were also
examined in detail where they were available. In addition, the researcher
interviewed members of these funds (contributors) by use of questionnaires.
Data was analysed by textual description with the aid of frequency tables and
charts.
The main findings of the study supported the view that pension funds have not
played a significant role in housing supply in Kenya, although this sector holds
a momentous accumulation of funds. A great potential thus exists for pension
funds to play a greater role in housing provision. The study also established
that members of pension funds would wish to see their funds invested in
affordable housing that they can acquire even before they retire. The study
recommends, therefore, that the Retirement Benefits Act be amended to
include a clause requiring pension funds to devote a proportion of their
investible funds in housing for their members. Investment of funds should
also be handled by investment consultants in order to prevent loss of funds in
bad investments. | en |
