Devolution And Its Effect On Urban Real Estate Development In Nyeri County,Kenya

ABSTRACT

Devolution is a strategy that was espoused to enable Kenya achieves a middle income nation status which would not only be globally competitive and prosperous, but also accord high quality of life to her citizens, as envisaged in the Kenya Vision 2030. The social pillar under the Kenya Vision 2030 aims at providing adequate and affordable housing to all Kenyans. Given the current demographic trends, Kenya will be a predominantly urban country by 2030 and more than half of our nation's population is likely to be residing in urban areas at that time. By devolving the housing function to County Governments, the County Governments are the vehicles that will lead in achieving Vision 2030. Urban real estate development is an important indicator of economic growth in any County and it is on the basis that the study sought to assess devolution and its effect on urban real estate development in Nyeri County. The study adopted a descriptive research design which is used when data are collected to describe persons, organizations, settings or phenomena. The target population comprised of 339 employees of real estate developers and real estate agents within Nyeri County. A sample of 102 respondents, which was 30% of the total population, was taken. A self-administered, questionnaire was used to collect data from the target respondents. Data analysis was conducted using statistical package for social sciences (SPSS), regression coefficient analysis and ANOVA to generate descriptive and inferential statistics. The results indicated that urban real estate development can be reflected by the number of approvals for building plans and number of additional landlords floated by tenants although the number of new electricity and water meters connections may be used as an indicator. For the Country to achieve the objectives of the housing for Kenyans as envisioned in the Kenya Vision 2030 Social Pillar and the Medium Term Plans 2013-2018, Nyeri County Government ought to streamline the administrative, legal and fiscal structure to make the County attractive to real estate investors. The study recommends that there should be more engagement with stakeholders when formulating legislation on taxes and other charges in real estate development, as they have a major impact on urban real estate development.