Cost Leadership Strategy and Performance of Life Assurance Companies in Kenya

The life assurance sector in Kenya has been striving to improve its performance in order to improve the overall livelihood of Kenyans. This study was conducted with the objective of investigating the effects of Cost leadership strategy on performance of life assurance companies in Kenya. The study adapted a descriptive research design. The target population was the 26 life assurance companies in Kenya consisting of 780 managers and unit of analysis was top, middle and line managers of all the 26 life assurance companies. Through systematic random sampling, a sample of 150 managers was selected. Primary data was collected using structured questionnaires with both open-ended and closed-ended questions. Reliability was tested through cronbach's alpha and research questionnaires were carefully checked to ensure they measured the content they were supposed to measure. The analysis of quantitative data was carried out using descriptive statistics which included frequencies, measures of central tendencies (mean) and measures of dispersion (standard deviation), correlation and regression model. The analysis was guided by use of statistical package for social sciences (SPSS version 23). The results revealed that cost leadership has a positive effect on performance of life assurance companies in Kenya. The study recommends that life assurance companies should sustain and continually improve on cost leadership strategy.