Indirect investment and financial performance of the real estate sector in Nairobi county Kenya

William Suley Menges; Kevin Getii Moranga

doi:10.36096/ijbes.v1i4.285

Authors

William Suley Menges Huazhong University of Science and Technology
Kevin Getii Moranga

DOI:

https://doi.org/10.36096/ijbes.v1i4.285

Keywords:

Investment trusts, exchange traded funds, commingled funds, infrastructure funds, performance

Abstract

The purpose of this study was to assess the effect of indirect investment on the performance of real estate in Nairobi County Kenya. The independent variables for indirect investment were: investment trusts, exchange-traded funds, commingled funds, and infrastructure funds. The dependent variable was the performance of real estate in Nairobi County Kenya. Secondary data was collected from the real estate’s online sources and some from the company offices and analyzed using multiple regression analysis. Both descriptive statistics and inferential statistics were determined. The study was only able to collect secondary data from 45 real estate companies out of the target population of 69 registered by KPDA in 2015 as it was hard to get data of the rest either from online sources or from the company offices. With the aid of STATA 12.0 software and Excel software, quantitative results were tabulated and presented in the form of charts, bar graphs, and narratives. The study found an existing relationship between the performance of the real estate sector and the Investment Trust Fund, the Exchange Trust Fund, the Commingled Fund, Infrastructure Fund. The study concludes that most of the coefficients were significant. The study also concludes that there is a relationship between the performance of the real estate sector and the Investment Trust Fund, Exchange Trust Fund, Commingled Fund, Infrastructure Fund when these components are considered together, they affect Performance.

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