Corporate Governance, Investment Strategy, Macroeconomic Variables and Financial Performance of Pension Schemes in Kenya


  • William Akwimbi University of Nairobi
  • Duncan Ochieng University of Nairobi
  • Josephat Lishenga University of Nairobi



The study investigated the impact of  Corporate governance (CG), investment strategy (IS) and macroeconomic variables on the financial performance of pension schemes in Kenya thereby addressing the key research question: What is the effect of CG, IS and macroeconomic variables on the financial performance of pension funds in Kenya? Qualitative, quantitative and correlational research designs were used to assess the effect of these factors on financial performance of pension funds. Quantitative data on annual return of pension funds and macroeconomic variables from 2012 to 2020 as well as qualitative data on CG indicators and IS were used in the study. Return on investments proxied pension fund performance. Primary data was collected using survey questionnaires from the pension schemes from both the CG and IS indicators to develop both CG and IS indices. The findings show that CG as well as IS and macroeconomic variables impact differently pension funding. Effect of CG indicators on pension performance was positive and significant.  The intervening effect of IS on the link between CG and pension performance was significant while the moderating effect of macroeconomic variables was significant. The individual contribution of both CG indicators and macroeconomic factors on pension performance, nonetheless varied. The main conclusion of the study is that pension fund financial performance is influenced by CG, IS and macroeconomic factors implying that there is need to take into account the impact of these factors in the execution of investment plans of pension funds to ensure generation of adequate funds for retirement benefits.

 Keywords: Corporate Governance, Investment Strategy, Financial Performance, Macroeconomic Factors

Author Biographies

William Akwimbi, University of Nairobi

Department of Business Administration, University of Nairobi, Nairobi, Kenya

Duncan Ochieng, University of Nairobi

Department of Business Administration, University of Nairobi, Nairobi, Kenya

Josephat Lishenga, University of Nairobi

Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya


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How to Cite

Akwimbi, W., Ochieng, D., & Lishenga, J. (2024). Corporate Governance, Investment Strategy, Macroeconomic Variables and Financial Performance of Pension Schemes in Kenya. Journal of Finance and Accounting, 8(3), 81–121.