Marcelline Awuor Odhoj, Dr. Paul Kariuki


There has been s1ow growth regarding market penetration by insurance in Kenya over years. The insurance penetration in Kenya has been showing a downward trend from the year 2020 to 2018 with insurance penetration ratios of 2.88, 2.75, 2.71, 2.68 and 2.43 for the years 2020,2019,2016,2017 and 2018 respective1y. This study therefore sought to analyze the influence of Turnaround Strategies on performance of insurance  firms in Nairobi City County, Kenya. Specifically, the study sought to establish the effect of retrenchment strategy on the performance of insurance  firms in Nairobi City County, Kenya and to determine the effect of restructuring strategy on the performance of insurance  firms in Nairobi City County, Kenya. The study used a cross-sectional descriptive research design. The study targeted management employees from these firms. From the 21 firms, the study targeted 1 top management employees, 2 middle level management employees and 2 lower level management employees from each firm. This implies that the total population form the study was 105 respondents. The study used census method since the target population is small. Questionnaires were administered for primary data collection. SPSS version 23 was used to analyze quantitative data using descriptive and inferential statistics. The findings of the study were presented descriptively using frequencies, percentages and means, while inferentially the study used correlation and regression analyses to test the relationship between turnaround strategies and performance of insurance firms in Kenya. The study results were presented through use of tables and figures. The study concludes that retrenchment strategy has a positive and significant effect on the performance of insurance firms in Nairobi City County, Kenya. In addition, the study concludes that restructuring strategy has a positive and significant effect on the performance of insurance firms in Nairobi City County, Kenya. From the findings, the study recommends that the management of insurance companies should strategically implement retrenchment measures, considering factors such as organizational structure, workforce skill sets, and market conditions. In addition, the study recommends that insurance firms should ensure that restructuring efforts are aligned with the organization's strategic objectives and long-term vision.

Key Words: Turnaround Strategies, Retrenchment Strategy and Restructuring Strategy

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