The Relationship between Pillars of Corporate Governance and Performance of Pension Fund Managers in Kenya

Authors

  • Derow Aden Ali Management University of Africa
  • Nicholas Kibiwott Letting The Kenya Accountants and Secretaries National Examinations Board
  • John Cheluget Management University of Africa

DOI:

https://doi.org/10.53819/81018102t2094

Abstract

Pension funds performance in Kenya have been facing myriad of challenges ranging from poor administration and investments of pension funds, lack of transparency and accountability, non-remittance of monthly contributions by employers, misappropriation of scheme assets by the trustees, loss of scheme funds through negligence of trustees and poor investment of the scheme assets. The objective of this study was to examine the relationship between pillars of corporate governance, and performance of registered pension fund managers in Kenya. This study adopted positivism philosophy. The study employed a cross sectional survey design whereby access to the widest possible amount of data from the targeted Fund Managers in Kenya was sought. The population of interest of the study was 31 Fund Managers in Kenya licensed by RBA and CMA. The study used purely primary data sources. Primary data was obtained from the selected respondents. Primary data was collected through questionnaire. Regression analysis was used to establish the relative significance of each of the variables on the influence of corporate governance on the performance of pension fund managers in Kenya. The study findings indicated that there was significant relationship between pillars of corporate governance and performance of pension fund managers in Kenya. The study concluded that there is significant relationship between pillars ofcorporate governance and performance of pension fund managers in Kenya. The study determined that the pillars ofcorporate governance practices being implemented had been incorporated in the Pension Fund’s investment management decisions with its assets being more diversified and having enhanced reporting on investments. The study recommends on pension reforms, by creating a new class of potential activist shareholders in the form of pension funds, could in principle improve corporate governance and increased shareholder discipline. The governments as well as Pension Fund Managers supervisors should consider a more active role in the selection process of the board members, while reducing their choices to professional beneficiaries of the pension funds

Keywords: Pillars of Corporate Governance, Transparency, Ownership Structure, Accountability, Participation Performance, Pension Fund Managers & Kenya

Author Biographies

Derow Aden Ali, Management University of Africa

Post Graduate Student, Management University of Africa

Nicholas Kibiwott Letting, The Kenya Accountants and Secretaries National Examinations Board

Secretary/Chief Executive Officer, The Kenya Accountants and Secretaries National Examinations Board

John Cheluget, Management University of Africa

Lecturer, School of Management & Leadership, Management University of Africa

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Published

2020-11-09

How to Cite

Ali, D. A., Letting, N. K., & Cheluget, J. (2020). The Relationship between Pillars of Corporate Governance and Performance of Pension Fund Managers in Kenya. Journal of Human Resource & Leadership, 4(6), 40–55. https://doi.org/10.53819/81018102t2094

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Articles