Responses of Nas Airport Services Limited Staff Provident Fund to the Onset of Covid19 Pandemic

Abstract

Today’s global competitive business landscape and macro environmental conditions facing many firms have changed rapidly making the business environment complex, dynamic, and largely unpredictable hence a major threat to business survival. Different organizations develop and implement different strategic responses depending on its environment, firm’s capability, resources and competencies. In Kenya, COVID-19 pandemic has stifled growth of the pension industry due to decline in contributions, value of assets and profits from investments. Due to the turbulence of the external environment, there is need for the organization to develop Measures to respond to the changes in the external environment for the firm to be profitable and sustainable. This study therefore thus sought to establish the responses of NAS Airport Services Limited Staff Provident Fund to the onset of Covid19 Pandemic. The findings of this study are useful to the management of Pension Schemes in Kenya for purposes of providing significant information on the bests strategic responses for effective running of the pension schemes during pandemics such as Covid19. The study was anchored on Environment Dependent Theory and Institutional Theory. This study employed a case study design. This design was appropriate for the study, as it facilitated the collection of substantive information regarding the responses of NAS Airport Services Limited Staff Provident Fund to the onset of Covid19 Pandemic. This study used primary data which was qualitative in nature and an interview guide was utilized in the study for the purposes of getting detailed information on the area under investigation. Open ended questions were used in the interview guide to measure sensitivity or disapproval behavior, discover salience and encourage natural modes of expression. The study targeted 10 senior managers in the following departments: Trustees, Fund Accounting, Custodians, Administration, Finance, Marketing, and Legal & Compliance. Content analysis was used to analyze the data. From the study findings, it was established that Covid 19 pandemic had negative impact on NAS Airport Services Limited Staff Provident Fund. Since the Pandemic struck, the returns were low compared to the other years owing to the volatility in the market. To address that challenges posed by Covid 19, NAS Airport services limited staff provident fund embraced both long term and short strategic measures such as product diversification and membership retention measures. The scheme also invested in less risky asset classes like the government bonds and switched to e-service delivery mode with view of cutting down operational cost. The study therefore recommended that pension schemes should constantly develop strategic reactions as they were found necessary in containing market changes. Such measures include aspects such as forming alliances, differentiating products and adjusting prices to make the firm fit for the economic climate. Further, pension schemes can improve their performance by ensuring adequate diversification of scheme assets away from the traditional asset classes. They should also come up with right legislature that offer attractive tax incentives and encourage savings from members for their retirement through the pension schemes. Finally pension schemes should remain on lookout and invest in companies that have sound fundamentals that can withstand tough economic crisis.