Strategic Planning Practices and Performance of County Pension Fund, Kenya

Abstract

Effective strategic planning practice requires stakeholder involvement, data-driven decision-making, and setting measurable goals to track progress with an aim of improving the organization’s productivity. The County Pension Fund (CPF) in Kenya has implemented strategic planning practices aiming at operational efficiency, financial security for members, and align with industry best practices. However, the fund is still performing dismally in terms of return on investment, operational inefficiency, delayed disbursement of benefits to members hence the need for this study. Therefore, the main objective of this study was be to assess the effect of strategic planning practices on performance of County pension fund in Kenya. The specific objectives were: to assess how strategic formulation, strategic implementation and strategic monitoring and evaluation affects the performance of County pension fund in Kenya. The study was anchored on the resource-based theory supported by the contingency and goal setting theories. The study adopted a descriptive research design since it’s suitable in describing the actual status of a phenomenon under study. The target population was all 452 pension fund employees working in all 9 regional offices with a sample size of 212 calculated using Yamane’s formula. The study collected primary data using a questionnaire which were dropped and picked. Data was analysed using SPSS version 26.0 and the results were presented in tables with calculated, Mean and Standard Deviation. A multiple regression to establish the cause-effect relationship between the independent variables and the dependent variables was undertaken. Form the correlation, the study found out that strategic formulation (p = .001), strategic monitoring and evaluation (p = .002), and strategic implementation (p = .002) were all positively and significantly related to organizational performance. On the model analysis based on the regression results, strategic formulation (B = 0.426, p = .018), strategic implementation (B = 0.489, p = .001), and strategic monitoring (B = 0.563, p = .002) had positive and significant effects on the performance of the County Pension Fund in Kenya. Form these findings, the study recommended that the County Pension Fund strengthen strategic formulation by integrating environmental scanning, stakeholder input, and sustainability metrics to enhance adaptability and resilience. Secondly, improving strategic implementation through a results-driven culture, clear performance accountability, staff capacity building, and effective interdepartmental communication for consistent outcomes. Finally, strategic monitoring and evaluation should use predictive analytics, independent reviews, continuous feedback, and stakeholder consultations to enhance accountability, innovation, and alignment with beneficiaries’ needs.