My name is Sammy Mwaita, a businessman majoring in real estate. I have an interest in learning and impacting knowledge which was my drive towards
INFLUENCE OF FOREIGN DIRECT INVESTMENT ON PERFORMANCE OF REAL ESTATE DEVELOPMENT PROJECTS IN KILIMANI, WESTLANDS SUB COUNTY, NAIROBI COUNTY, KENYA
Research Supervisors
PROF. CHARLES M. RAMBO, PhD
The performance of real estate projects has been dropping significantly in the recent past with most of the buildings remaining delayed for years. This is despite the recorded increase in foreign direct investment and most recently the focus by the government on housing as one of the big-four agendas. This study therefore sought to investigate the influence of foreign direct investment on performance of real estate development project in Kilimani area, Westlands Sub-County. The study specifically sought to examine the influence of equity capital, reinvested earning, intra company, and off-plan purchases and sales on performance of real estate development projects, and assess how government policy moderate the relationship between FDIs and performance of real estate development projects. Descriptive research design was used while the target population was the real estate companies in Kilimani area. Purposive sampling method was employed. The data was collected using structured questionnaires and analyzed through descriptive and inferential statistical analysis techniques. The findings revealed that equity capital, reinvested earnings, intra-company loans and off-plan sales and purchases significantly and positively influenced the performance of real estate development projects. Government policy significantly moderated the relationship between FDIs and project performance. The study concluded that through equity capital, reinvested earnings, intra-company loans and off-plan sales and purchases, the real estate development projects performed better. It is therefore recommended that the real estate development companies through their management embrace FDIs through equity capital, reinvested earnings, intra-company loans and off-plan sales and purchases to enhance the performance of the projects.
