FINANCIAL RISK AND PERFORMANCE OF PENSION SCHEMES, A SURVEY OF PENSION SCHEMES IN KENYA
Abstract
The main objective of this study was to assess financial risk and performance of pension schemes, a survey of pension schemes in Kenya. The study sought to establish the effect of market risk, liquidity risk, operational risk and credit risk on performance of pension schemes in Kenya. This study adopted descriptive research design and the target population was pension schemes in Kenya. A sample size of 303 pension schemes was involved in this study. The pension schemes were selected using simple random sampling technique, and data collection sheet issued per pension scheme selected. In every pension scheme, one respondent was selected from the middle level management using purposive random sampling technique. Quantitative data collected was analyzed by descriptive and inferential analysis. Statistical Package for Social Sciences (SPSS helped the researcher to analyze the data. The findings were presented using tables, pie charts and bar graphs. The results indicated that market risk, credit risk, liquidity risk and operational risk negatively affected performance of pension schemes in Kenya. Therefore, the study concluded that financial risks negatively affect performance of pension schemes in Kenya. The study recommended that managers of pension schemes in Kenya should put in place conventional risk management where they should adopt proactive approaches and be forewarned by developing regulatory insight to avoid legal risks.
Key Words: Market Risk, Liquidity Risk, Operational Risk, Credit Risk
CITATION: Omwaka, S. A., & Malenya, A. (2020). Financial risk and performance of pension schemes a survey of pension schemes in Kenya. The Strategic Journal of Business & Change Management, 7(3), 912 – 929.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1716
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