STAKEHOLDER ENGAGEMENT PROCESS AND PERFORMANCE OF REAL ESTATE PROJECTS IN NAIROBI CITY COUNTY, KENYA
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Abstract
Stakeholder engagement is a process by which an organization involves relevant stakeholders who may be affected by the decisions it makes or can influence the implementation of its decisions for a purpose to achieve accepted outcomes. Real estate development, serves as an important contributor to a Nation’s economic growth. It also supports the attainment of society’s essential needs. The real estate companies in Kenya have also experienced problems with late project completion, subpar quality of completed projects, misuse of client funds, and legal challenges with their clients. The general objective of the study was to establish the effect of stakeholder engagement process and performance of real estate projects in Nairobi City County, Kenya. The specific objectives were to examine effect of plan stakeholder engagement monitor and evaluate stakeholder engagement on performance of real estate projects in Nairobi City County, Kenya. The study adopted a descriptive research design. The unit of analysis was 55 property development companies in Nairobi County. The unit of observation was the project managers, project supervisors, maintenance managers, and the leasing/renting managers, sales managers hence a total of 275 respondents. A sample of 162 respondents was determined using Yamane 1967 formula. The study used stratified random sampling technique. The study used questionnaires to collect data. A pilot study was carried out with 16 management staff. Content and construct validity were used to validate the instruments. To test reliability of the instrument, the researcher used Cronbach alpha. Data was analyzed using descriptive (frequency, percentage, mean, standard deviation) and inferential statistics (correlation, regression) using SPSS Version 28. According to findings; a strong significant relationship between plan stakeholder engagement and project performance (r=0.933, p=0.000), and a strong significant relationship between monitor and evaluate stakeholder engagement and project performance (r=0.805, p=0.000). The recommendations are that; the project managers should ensure that all identified stakeholders are registered data well captured into the stakeholder registry. The firms should make efforts to employ skilled monitoring and evaluation staff. This will ensure that there is effective monitoring and evaluation of stakeholder engagement.
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