Strategic Responses by National Social Security Fund to Competition From Other Pension Funds in Kenya

Abstract

Organizations operate within an environment that influences its business operations positively or negatively depending on the nature of its business. The environment is not only dynamic but also turbulent, discontinuous and unpredictable. The survival and success of an organization is only possible when the organization creates and maintains a match between its strategy and the environment, and also between its internal capability and the strategy. Organizations formulate strategies that help them meet the requirements of the stakeholders. Every organization has competitors who influence strategy process and consequently determine the organization's purpose that result in terms of its achievement. The National Social Security Fund (NSSF) was established in 1965 by an Act of Parliament under cap 258 Laws of Kenya and serves as a first pillar of social security for Kenyan workers. The Kenyan social security sector has recently been growing at high rate due to the inclusion of new player in social security services, which was previously solely managed by NSSF. This has led to a competitive situation where social security institutions are searching for ways to manage in this competitive sector. This study, therefore, sought to determine the strategic responses adopted by NSSF in competing with other pension funds in Kenya. The study used interview guides to collect the data from five general managers who are the heads of the five divisions in the N.S.S.F. Content analysis was used to analyze the data. The study finings indicate that NSSF has stipulated strategic plans aimed at enhancing competitive advantage in response to internal and external environmental forces. The strategies include increasing membership base, improving range and level of benefits, business process and v organizational structures, management of human capital, information management and corporate imaging. The study recommends continuous monitoring and evaluation of the process of implementation of strategic plans, increase in the scope of available benefits and membership coverage and adherence to recruitment of highly qualified staff