Effect of Strategic Planning Practices on Performance of Selected National Health Insurance Fund Branches in Western Kenya Region

Abstract

Strategic planning, as a central element of strategic management, has become increasingly vital in enhancing organizational performance. The extent to which the National Health Insurance Fund (NHIF) branches in the Western Kenya Region achieve their mandate of offering quality and affordable health insurance to Kenyans depends largely on their dedication to, and success in, long-term strategic planning. Although notable strides have been made, questions still linger around fairness, efficiency, feasibility, and long-term sustainability of these initiatives. This situation inspired the present study, which sought to evaluate the benefits that NHIF branches in Western Kenya derive from strategic planning practices. The general aim of this research was to analyze the effect of strategic planning practices on the performance of selected NHIF branches in Western Kenya. The specific objectives were threefold: to assess how stakeholder involvement influences performance, to examine the role of environmental scanning in performance, and to evaluate the effect of top management support on the performance of NHIF branches in the region. The study was anchored on three theoretical foundations: the resource-based view, Ansoff’s strategic success theory, and the strategic choice theory. A descriptive research design was adopted, focusing on NHIF branches within selected counties in Western Kenya. The target population comprised 195 employees, from which a sample of 145 respondents was drawn using stratified and simple random sampling techniques. Data collection relied on structured questionnaires with closed-ended items. Reliability was measured through Cronbach’s alpha, while expert judgment ensured validity. Both descriptive statistics (means, percentages, frequencies, and standard deviations) and inferential statistics (correlation, simple regression, and multiple regression analysis) were employed to analyze the quantitative data. The results revealed a strong and significant positive link between strategic planning practices and NHIF performance in Western Kenya, with strategic planning practices accounting for 43.6% of the variance in organizational performance. Based on these findings, the study recommended that NHIF leadership adopt a structured, performance-oriented approach to strategic planning. Furthermore, organizations should build stronger connections between strategic management processes and the active participation of employees in shaping effective planning frameworks.