A study of the strategic responses by Kenyan insurance companies following liberalisation

Abstract

The economic reforms in Kenya made the business environment very turbulent and affected business practices. The study therefore sought to document the sector's response to the changes in the business environment. The Principal objective is to determine the strategic responses and adjustments in strategic variables adopted by the firms which could be due to changes in the external environment. Primary data was collected using bot II the structured and unstructured questionnaire to gather information. The study was done ill Nairobi. A census survey of 36 companies was to be done but 26 of them participated out of which 8 were interviewed and the rest (18) were administered through "the drop and pick later" technique. The method of data analysis is by descriptive statistics as the desired statistical method include tabulation, frequencies, percentages, mean scores, variance and standard deviation. The study revealed that majority of the firms changed their mission components mainly in products/services and technology.· Majority of the firms changed the ranking of their goals. Growth topped the goals before re changes occurred but now it is profitability. Majority of the firms did not change their long term objectives. It was observed that the finns are operating in a very competitive environment which has affected their internal behaviour. The environmental changes affected the operation of the firms as they adjusted the strategic variables though on a moderate scale with the most adjusted variables being marketing and process strategies. In the research strategies, the variables that were adjusted more than the others are strategic plans and research on products of competitors. It was also observed that price war is rampant in the industry.