CHALLENGES FACING MANAGEMENT OF PENSION SCHEMES IN STATE CORPORATIONS IN KENYA: A CASE STUDY OF THE KENYA PORTS AUTHORITY PENSION SCHEME.

Abstract

A pension scheme serves as a tax-efficient retirement savings plan, offering individuals the opportunity to save during their working years and receive income upon retirement. Unfortunately, issues of misappropriation and mismanagement have been observed in various pension schemes, including the Kenya Ports Authority Pension Scheme. This research focuses on exploring the challenges encountered in the management of pension schemes, specifically delving into the Kenya Ports Authority Pension Scheme and its workforce of twenty employees. The research employs a survey method to scrutinize aspects such as management structures, investment decisions, adherence to government policies, and responses to economic volatility, all crucial for the effective operation of the pension scheme. Both qualitative and quantitative data was gathered using questionnaires, interview schedules, and document analysis. The outcomes and recommendations derived from this study aim to contribute significantly to the enhancement of management structures and the formulation of well-informed decisions. Additionally, the research seeks to understand the challenges faced by formal pension schemes, like the Kenya Ports Authority Pension Scheme, in adapting to the socio-economic characteristics of informal workers. It also aims to evaluate the financial sustainability of social security schemes in Kenya, with a specific focus on the hurdles encountered by pension systems. Furthermore, the study explores the potential for pension schemes to facilitate access to affordable housing, highlighting the Kenya Ports Authority Pension Scheme's pioneering role in this domain. Legal cases and regulatory notifications related to pension scheme management, including those involving the Kenya Ports Authority Pension Scheme, will also be examined as part of the research.