Foreign Direct Investment and Profitability of Real Estate Firms in Kenya

Abstract

The purpose of this research paper was to determine the impact of foreign direct investment on the profitability of real estate firms in Kenya. The research utilized the descriptive research design. The target populace for the investigation encompassed 69 real estate firms that are registered with Kenya Property Developers Association (KPDA) in Kenya. Since the populace was small, all the 69 real estate firms were included in the study and thus no sampling was done. Secondary data was collected. The researcher used both descriptive and inferential statistics in the study. The study found that foreign direct investment positively influenced the real estate firm’s profitability. Therefore, an increase in foreign direct investment would lead to an increase in the profitability of real estate firms in Kenya. The study concluded an increase in foreign direct investment would lead to an increase in the profitability of real estate firms in Kenya. The study recommends that the Kenyan government should set a conducive and proper environment for both local and foreign investors. In addition, incentives and tax holidays, and reliefs should be set for foreign investors. This will increase the level of foreign direct investment which will help to attract more investors to the real estate.