Factors influencing pensions sector development In Kenya

Abstract

The primary objective of this study was to investigate the factors that influence pension sector development in Kenya . The rationale of the study arose from the fact that retirees in Kenya have been subjected to abject poverty and suffering even after working for most of their lifetime. The study intended to bridge the gap and try to address the issue of why most Kenyans start thinking about retirement when they are about to retire only to realize that they did not prepare for it early enough.

To facilitate this study, the target population of all pension schemes in Kenya was studied. There were 1381 schemes according to 2006/2007 RBA Annual Reports and Accounts. The survey method was used for the purpose of the study. Data collection procedures involved use of questionnaires which were developed with both open and closed ended questions. The data collected was to address the various factors influencing pension sector development in Kenya.

The results of the study suggested that the main factors affecting pension sector development in Kenya included underfundinq, current legislation, members knowledge and awareness, sponsor interference, agency problem, lack of corporate governance practices and HIV-AIDS pandemic.