Abstract:
As a key component of strategic management, strategic planning plays an increasingly important role in stimulating
organizational performance. How well NHIF offices in Western Kenya do in terms of meeting their mission to provide
excellent health insurance to all Kenyans at a price they can afford will be gauged by the organization's commitment to, and
success with, long-term strategic planning. Some progress has been achieved, but these changes still pose questions of fairness,
efficiency, practicability, and long-term viability. This motivates the present research, which aims to determine how the
National Hospital Insurance Fund's branches in Western Kenya region benefit from strategic planning techniques. The main
objective of this study was to assess the effect of strategic planning practices on performance of National Hospital Insurance
Fund in Western Kenya branches. The specific objectives of this study were to: determine the effect of stakeholders`
involvement on the performance of NHIF branches in Western Kenya, establish the effect of environmental scanning on the
performance of NHIF branches in Western Kenya and determine the effect of top management support on the performance
NHIF branches in Western Kenya. The study was based on three theories namely resource-based theory, Ansoff strategic
success theory and strategic choice theory. This study employed a descriptive research design to carry out an investigation
between performance and strategic planning practices of NHIF. The target population for the study was 195 employees from
the functional departments of NHIF in Western Kenya in the eleven branches of Kisumu, Homabay, Migori, Kisii, Nyamira,
Siaya, Vihiga, Busia, Mumias, Bungoma and Kakamega. Stratified sampling technique was used to select a representative
sample of 145 respondents. The primary data for the study was collected using closed ended questionnaires. The study adopted
Cronbach’s metrics of alpha to determine the internal consistency of the instrument. Quantitative data was analyzed using both
descriptive statistics (frequencies, percentages, means, standard deviation) and inferential statistics (Regression, Correlation
and ANOVA). The findings showed a significant positive relationship between strategic planning practices and performance
of NHIF in western Kenya, where strategic planning practices alone are able to explain 43.6% of the variance in the
performance of NHIF. The study recommended that the management should promote a disciplined, results-driven approach to
strategic planning. There should be a favourable association between strategy management methods and an organization's
willingness to involve its employees in developing effective strategic planning processes.
