INFLUENCE OF STRATEGIC RISKS MANAGEMENT STRATEGY ON GROWTH OF REAL ESTATE SECTOR IN KENYA

Kevin Mburu Kuria

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Dr. Frida Simba

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

Dr. Ahmed Anwar

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

CITATION: Kuria, K., M. Simba, F. Anwar, A. (2018). Influence Of Strategic Risks Management Strategy On Growth Of Real Estate Sector In Kenya. International Journal of Strategic Management. Vol. 7 (8) pp 42 – 55.

ABSTRACT

The purpose of this study was to establish the influence of strategic risk management strategy on the growth of real estate sector in Kenya. This study adopted a positivist philosophy as it aimed at testing hypotheses derived from a predetermined conceptual framework. This research used a quantitative cross sectional survey research design as the design provided accurate means of assessing information that captures respondents’ similarities and differences. The study sample comprised of all real estate firms registered by Kenya Property Developers Association (KPDA) which are 69 in number, thus a census. Primary data was gathered by use of structured questionnaires and captured through a 5-point type likert scale questionnaire. Descriptive statistics including the mean and standard deviation was used to capture the characteristics of the variables under study. Inferential statistics included use of corelation and regression analysis. Multiple regression analysis was used to establish the nature and magnitude of the relationships between the variables and to test the hypothesized relationships. All the analysis was done using SPSS statistical package. The results of data analysis were presented using figures and tables for easy understanding and interpretation. The findings indicated real estate firms had put in place several strategic management measures to promote growth. These included the existence of a board with the skills and ability to lead the firm strategically. Additionally, the board members roles extended beyond governance and into management of the firm and the board had policies stipulating term limits and rotation for its members. The study concluded that real estate sector had effective strategic risk management strategies that promoted growth and enabled effective management of reputational and governance risks. The study recommends that strict adherence to strategic risk management practices this is by ensuring that there is transparent and accountable leadership in the organization which sets the organization’s mission and vision and makes sure that the plan is followed to the latter so as to achieve the organizational goals and objectives.

Key Words: Strategic Risk Management, Strategy, Growth, Real Estate,

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