Driving Sustainable Futures: Stakeholder Engagement Policy and Strategic Investor Attraction in Nairobi’s Real Estate Industry
DOI:
https://doi.org/10.53819/81018102t4395Abstract
Rapid urbanization, population growth, and sustained demand for residential, commercial, and industrial developments have positioned Nairobi’s real estate sector as a major contributor to Kenya’s economic growth. Despite historical real estate growth characterized by rising GDP contribution, strong investment returns, and infrastructural development, the sector has recently experienced some level of stagnation characterized by declining building approvals, reduced retail occupancy rates, prolonged approval timelines, and unmet housing demand. The study therefore sought to assess the effect of stakeholder engagement policy on strategic investor attraction in the real estate sector in Nairobi City County. The study was anchored on stakeholder theory and Signaling Theory. The study adopted positivist research philosophy and employed a descriptive research design. The target population comprised 598 real estate investors, developers, and urban planners/regulators operating within Nairobi City County. Using Yamane’s (1967) formula, a sample size of 240 respondents was selected through proportionate stratified random sampling. Primary data were collected through structured questionnaires and key informant interviews. Regression analysis revealed that stakeholder engagement policy had a positive and statistically significant effect on strategic investor attraction (β = 0.364, p = 0.002), leading to the rejection of the null hypothesis. The findings confirm that inclusive consultations, transparent governance, and effective dispute resolution reduce investment risk perceptions and strengthen investor confidence. The study concludes that stakeholder engagement policy plays a critical role in aligning regulatory objectives with market realities and in fostering institutional trust within Nairobi’s real estate sector. In view of the findings, the study recommends institutionalizing structured and outcome-oriented engagement frameworks, ensuring transparency through digitized approval systems, strengthening substantive community inclusion, streamlining dispute resolution mechanisms, and building capacity among planners and developers in participatory governance practices.
Keywords: Stakeholder engagement policy, strategic investor attraction, real estate sector, sustainable urban development, Nairobi City County.
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