Strategy Implementation Practices and Performance of Local Authority Provident Fund in Nairobi City County, Kenya

Ahmednadhir Aden Abdullahi^1, and Janet Muthimi¹

¹Department of Business Administration, Kenyatta University

Cite this paper:
Ahmednadhir Aden Abdullahi and Janet Muthimi. Strategy Implementation Practices and Performance of Local Authority Provident Fund in Nairobi City County, Kenya. Journal of Business and Management Sciences. 2026; 14(1):1-11. doi: 10.12691/jbms-14-1-1

Abstract

The Local Authority Provident Fund in Nairobi City County, Kenya, has shown generally satisfactory performance, indicating effective operations and management. However, a closer look at the data reveals that the fund has not fully met its targets. This research aimed to assess how strategy implementation practices affect the performance of the Local Authority Provident Fund within Nairobi City County, Kenya. Specifically, the study sought to determine the effect of top management support, resource mobilization, organizational culture and organizational structure on the performance of the Local Authority Provident Fund within Nairobi City County, Kenya. The study was guided by the leadership contingency theory, resource-based view, Durkheim’s cultural theory, and contingency theory. A descriptive research design framed the study. The target population included staff at the Local Authority Provident Fund in Nairobi City County. Seventy-five individuals participated, consisting of 5 managerial personnel and 70 support staff. All 75 individuals were fully enumerated. Data was gathered using a structured questionnaire, pretested on eight individuals to confirm reliability and validity. Content validity was applied to ensure the language was clear and accessible to respondents. To evaluate internal consistency, the split-half technique was applied. Quantitative responses were processed using descriptive metrics like means and standard deviation. To explore variable relationships, inferential tools such as regression and correlation analysis were used. The study found out that top management support, resource mobilization, organizational culture and organizational structure had a positive and significant effect on the performance of Local Authority Provident Fund in Nairobi City County, Kenya. The study concludes that the top management sets the strategic direction of an organization by providing clarity and a vision that aligns the team’s efforts and goals. Effective mobilization of resources leads to improved performance outcomes for the provident fund since the fund is better equipped to meet its obligations to its members when resources are effectively organized and utilized. A positive organizational culture motivates staff and also leads to more efficient service delivery and better financial outcomes. The study recommends that there is need for transparent communication through properly defined lines of communication between management and staff to foster trust and collaboration. The organization should collaborate and partner with private sector organizations, NGOs, and even international partners. The organization should assess the current structure by carrying out a routine analysis of its current structures and identifying areas for improvement through streamlining processes or redefining roles for better clarity.

Keywords:
Strategy implementation practices Organization Culture Resource Allocation Strategy Execution Leadership Support performance

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