Regulatory Frameworks and Trustee Functions in Small Pension Schemes in Nairobi City County, Kenya
The empirical evidence relating to the relationship between regulatory frameworks and trustee functions in small pension schemes is scanty. In the interrogation of this topic the paper delves at how regulations have impacted on prudent and consistent management of pension funds in relation to schemes’ administrative functions and procedures performed by Trustees. In order to objectively evaluate this relationship, the paper is guided by the following objectives: to explore the impact compliance with regulations has on Trustee functions; assess how decision -making process affects the trustee functions in small schemes and; establish the impact trustee technical capacity has on the trustee functions in small pension schemes. There are 1238 pension schemes in Kenya with 458 classified as small schemes having fund values of less than 100million shillings. The study focused on Nairobi City County with 290 small schemes. A descriptive research design was adopted for the study with 81 schemes, 4 RBA officials, 1 ARBS official and 5 scheme administrators being drawn through purposive, stratified and simple random sampling techniques to participate in the study. Questionnaires and interview schedules were used to collect data as well as available secondary data. The data collected was analysed by computing both the descriptive (finding mean, variance, and coefficients of variation of the responses) and inferential statistics. The study findings show that regulatory frameworks have a direct correlation with Trustee functions in small schemes and that the schemes exhibit administrative efficiencies and good governance due to their span of control. It thus recommends that there be an exemption of small schemes from certain compliance requirements and a deliberate move towards implementing of the existing laws and continuously assessing their impact rather than the frequent changes in legislation and to further involve trustees in small schemes proactively in formulating these laws when need arises.
Key words; Regulatory Frameworks Trustee Functions, Small Pension Schemes, Regulatory compliance, decision making process