The general objective of the study was to investigate the effect of investment portfolio diversification on the financial performance of retirement benefits schemes in Kenya. The study further examined the moderating effect of foreign exchange rate on the relationship between the variables under inquiry. The study adopted the descriptive research design. The population of study comprised of 87 schemes. The sample size of the study was 72 units and it was determined using the she stratified random sampling technique. The study used both primary and secondary data. The statistical package for social sciences was used in data analysis. The hypothesis testing led to the rejection of H01 and H02, thus confirming that investment diversification in equities and investment diversification in bonds have a significant positive effect on the financial performance of the retirement benefits schemes in Kenya. The hypothesis testing for the moderated relationship model led to the rejection of H03, thus confirming that foreign exchange rate has a significant moderating effect on the relationship between investment portfolio diversification and the financial performance of the retirement benefits schemes in Kenya. The researcher therefore, recommends that the retirement benefits schemes should focus on diversifying their investments in equities and bonds because they both have a positive effect on the company’s financial performance. The researcher further recommends that the schemes should closely monitor the foreign exchange rate, because it has a significant moderating effect on the relationship between investment portfolio diversification and financial performance.
| Published in | Journal of Investment and Management (Volume 14, Issue 1) |
| DOI | 10.11648/j.jim.20251401.11 |
| Page(s) | 1-9 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2025. Published by Science Publishing Group |
Investments, Diversification, Equities, Bonds, Financial Performance, Retirement Benefits Schemes, Portfolio
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APA Style
Kenga, D. S., Banafa, A. A. (2025). Investment Portfolio Diversification and Financial Performance of Retirement Benefits Schemes in Kenya. Journal of Investment and Management, 14(1), 1-9. https://doi.org/10.11648/j.jim.20251401.11
ACS Style
Kenga, D. S.; Banafa, A. A. Investment Portfolio Diversification and Financial Performance of Retirement Benefits Schemes in Kenya. J. Invest. Manag. 2025, 14(1), 1-9. doi: 10.11648/j.jim.20251401.11
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Download@article{10.11648/j.jim.20251401.11,
author = {Dominic Shukrani Kenga and Abdulkadir Ali Banafa},
title = {Investment Portfolio Diversification and Financial Performance of Retirement Benefits Schemes in Kenya
},
journal = {Journal of Investment and Management},
volume = {14},
number = {1},
pages = {1-9},
doi = {10.11648/j.jim.20251401.11},
url = {https://doi.org/10.11648/j.jim.20251401.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20251401.11},
abstract = {The general objective of the study was to investigate the effect of investment portfolio diversification on the financial performance of retirement benefits schemes in Kenya. The study further examined the moderating effect of foreign exchange rate on the relationship between the variables under inquiry. The study adopted the descriptive research design. The population of study comprised of 87 schemes. The sample size of the study was 72 units and it was determined using the she stratified random sampling technique. The study used both primary and secondary data. The statistical package for social sciences was used in data analysis. The hypothesis testing led to the rejection of H01 and H02, thus confirming that investment diversification in equities and investment diversification in bonds have a significant positive effect on the financial performance of the retirement benefits schemes in Kenya. The hypothesis testing for the moderated relationship model led to the rejection of H03, thus confirming that foreign exchange rate has a significant moderating effect on the relationship between investment portfolio diversification and the financial performance of the retirement benefits schemes in Kenya. The researcher therefore, recommends that the retirement benefits schemes should focus on diversifying their investments in equities and bonds because they both have a positive effect on the company’s financial performance. The researcher further recommends that the schemes should closely monitor the foreign exchange rate, because it has a significant moderating effect on the relationship between investment portfolio diversification and financial performance.
},
year = {2025}
}
TY - JOUR T1 - Investment Portfolio Diversification and Financial Performance of Retirement Benefits Schemes in Kenya AU - Dominic Shukrani Kenga AU - Abdulkadir Ali Banafa Y1 - 2025/06/12 PY - 2025 N1 - https://doi.org/10.11648/j.jim.20251401.11 DO - 10.11648/j.jim.20251401.11 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 1 EP - 9 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20251401.11 AB - The general objective of the study was to investigate the effect of investment portfolio diversification on the financial performance of retirement benefits schemes in Kenya. The study further examined the moderating effect of foreign exchange rate on the relationship between the variables under inquiry. The study adopted the descriptive research design. The population of study comprised of 87 schemes. The sample size of the study was 72 units and it was determined using the she stratified random sampling technique. The study used both primary and secondary data. The statistical package for social sciences was used in data analysis. The hypothesis testing led to the rejection of H01 and H02, thus confirming that investment diversification in equities and investment diversification in bonds have a significant positive effect on the financial performance of the retirement benefits schemes in Kenya. The hypothesis testing for the moderated relationship model led to the rejection of H03, thus confirming that foreign exchange rate has a significant moderating effect on the relationship between investment portfolio diversification and the financial performance of the retirement benefits schemes in Kenya. The researcher therefore, recommends that the retirement benefits schemes should focus on diversifying their investments in equities and bonds because they both have a positive effect on the company’s financial performance. The researcher further recommends that the schemes should closely monitor the foreign exchange rate, because it has a significant moderating effect on the relationship between investment portfolio diversification and financial performance. VL - 14 IS - 1 ER -
Department of Accounting and Finance, Technical University of Mombasa, Mombasa, Kenya
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