Abstract: In 2018, there was a KES 6.3 billion loss in net profit for the Kenyan insurance sector. Therefore, this study attempts to look into the effect of competitive strategies on selected insurance firms’ performances of within City County of Nairobi, Kenya. Particularly, it sought to find out what effect differentiation, market focus, innovation strategies as well as cost leadership has on selected insurance firms’ performance in Nairobi, Kenya. Theories which provided the background in this study were Resource Dependency theory, Dynamic Capabilities theory and Resource-Based View theory. 194 management-level workers from the four insurance companies with headquarters located in Nairobi County, Kenya, served as the target demography. The 135 responders from the target population were specifically selected by utilizing the stratified random sampling method. A questionnaire that is well structured was the means by which primary quantitative data was obtained. Using a descriptive research approach and an insurance company document examination yielded secondary data. Findings disclosed that cost leadership insignificantly and positively affected these selected insurance companies’ performances. Pertaining to the effect, the regression findings discovered that differentiation strategy has an insignificant positive effect on performance. The regression output demonstrated that market focus strategy has an insignificant effect that is positive on performance. The regression findings unfolded that innovative strategy has a significant effect that is positive on the selected insurance companies’ performance in Nairobi City County, Kenya. The study recommends that insurance companies should focus on developing robust operational efficiency strategies. This could involve investing in digital transformation to streamline processes, improve customer service through technology-enabled platforms, and enhance data analytics capabilities to better understand market trends and customer needs. By shifting focus towards operational excellence and technological innovation, these companies can potentially improve their overall performance more effectively than relying solely on cost leadership strategies.
Keywords: Competitive Strategies, Performance and Insurance Companies.
Title: COMPETITIVE STRATEGIES AND PERFORMANCE OF SELECTED INSURANCE COMPANIES IN NAIROBI CITY COUNTY, KENYA
Author: Margaret Gathoni Mwangi, Elishiba Murigi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 13, Issue 1, April 2025 - September 2025
Page No: 301-313
Research Publish Journals
Website: www.researchpublish.com
Published Date: 16-July-2025
