Effect of regulations on growth of construction companies in Kiambu County Kenya

Date
2020-10
Authors
Wathua, Charles Kigwe
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The increase in demand for better housing, infrastructure development, and office facilities has mainly contributed to the boom in the construction industry in Kenya. This has led to unprecedented growth in urban development in Counties in proximity to the capital city. This development has, however, faced regulatory challenges owing to the shoddy craft and lack of compliance within some of the construction firms. This research sought to found the impact of regulations on the growth of construction firms in Kiambu County. The research specifically examined the effect of environmental laws, building regulations, and registration requirements on the growth of the firms. The research was anchored on the growth of firm theory and the public interest theory. The study adopted a positivist research philosophy with a cross-sectional descriptive survey being utilized. The focus of the study was the 162 firms registered within Kiambu County under category NCA1-NCA5. The study adopted a census survey of the 162 firms. The research relied on primary data that was collected using a structured questionnaire. The study pretested the questionnaire with 16 construction firms that were not involved in primary research. The collected research data was edited and coded into SPSS 25 for subsequent analysis. The study relied on quantitative data analysis techniques with descriptive and inferential analysis being adopted. The study findings were presented graphically using charts, bar graphs, and tables. The study was able to obtain a 77% response rate among the sampled construction firms. The findings of the study indicated that 18.2% of the variations in construction growth is determined by regulations. The study concludes that there is a positive association between building regulations, registration requirements, environmental laws, and the growth of construction firms. The study recommends that construction firms should actively review their regulations and ensure compliance to sustain their growth. The study further recommends that county governments should be given an active role in accrediting and regulating contractors.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Urban development, Construction, Regulations
Citation