GOVERNANCE QUALITY, INVESTMENT STRATEGY, AND PENSION FUNDING ADEQUACY IN KENYA: AN EMPIRICAL ANALYSIS

Autor

  • William Akwimbi Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya
  • Duncan Ochieng Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya
  • Josephat Lishenga Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya
  • Martin Ogutu Department of Business Administration, University of Nairobi, Nairobi, Kenya

DOI:

https://doi.org/10.46827/ejefr.v10i1.2132

Słowa kluczowe:

corporate governance, investment, pension performance, return on investment

Abstrakt

This study assessed the influence of corporate governance and investment strategy on the financial performance of pension funds in Kenya over the period 2012–2022. The study used a mixed-methods approach, combining qualitative and quantitative designs, using primary survey data and secondary pension performance data. Corporate governance and investment strategy were measured through survey-based indices, while pension fund performance was assessed using financial return indicators. A multi-equation analytical framework was applied to examine direct, mediating and joint effects.

The results reveal that corporate governance practices have a significant positive effect on pension fund performance. Investment strategy plays a critical mediating role, enhancing the effectiveness of governance practices in improving financial outcomes. The study concludes that pension fund performance in Kenya is jointly determined by governance quality and investment strategies, underscoring their importance for fund managers, regulators, and policymakers in promoting sustainable retirement income security.

 

JEL: G23 – Non-bank Financial Institutions; Institutional Investors (including pension funds); G34 – Mergers; Acquisitions; Corporate Governance; G11 – Portfolio Choice; Investment Decisions; G28 – Government Policy and Regulation; C33 – Panel Data Models; Longitudinal Data; C83 – Survey Methods; Sampling Methods; J32 – Private Pensions

 

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Biogramy autorów

  • William Akwimbi - Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya

    William Ambaka Akwimbi, PhD Student, Department of Finance and Accounting, University of Nairobi, Kenya.

  • Duncan Ochieng - Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya

    Dr. Duncan Ochieng, PhD in Finance, Senior Lecturer, Department of Finance and Accounting, University of Nairobi, Kenya.

  • Josephat Lishenga - Department of Finance and Accounting, University of Nairobi, Nairobi, Kenya

    Prof. Dr. Josephat Lishenga, PhD in Finance, Senior Lecturer, Department of Finance and Accounting, University of Nairobi, Kenya.

  • Martin Ogutu - Department of Business Administration, University of Nairobi, Nairobi, Kenya

    Prof. Dr. Martin Ogutu, PhD in Strategic Management, Senior Lecturer, Department of Department of Strategic Management, University of Nairobi, Kenya.

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Pobrania

Opublikowane

2026-02-11

Numer

Tom 10 Nr 1 (2026)

Dział

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