THE EFFECT OF PROPERTY DEVELOPERS LISTING IN THE NAIROBI SECURITIES EXCHANGE (NSE)

ABSTRACT
Property developers have a number of challenges that affect the operations of the firm and
spread to other areas in the construction industry overall affecting the society and economy.
The major challenge is financial situation that can be a solution to various issues affecting the
firm, however, most developers approach financial institutions to acquire finances that charge
high interest rates. The research tends to establish whether the securities market is a solution
to the financial problem affecting Property Developers in Kenya considering the effects that
result from the approach.
A number of property developers have ventured into the security market so as to view the
possibility of a solution to financial challenge facing them. Capital structure as a result of
joining the security market is an effect of listing and can as well be a reason and if well
embraced it can be beneficial to the developer. The administration structure is important to
any company and can ensure its success or failure.
The research was meant to gather data on the Property Developers listed on the Nairobi
Securities Exchange (NSE) and those that have not bought the idea. Property Developers are
mostly situated in Nairobi and can be traced through Kenya Property Developers Association
(KPDA) that has a list of its members to date. Data collection was through questionnaires to
the Property Developers both those who are in the securities market and those that are not.
A sample of the Property Developers was consulted on the option of joining the security
market and the response was sufficient for/the purpose of the research. The data was analyzed
with the use of SPSS 20.0 and a range of findings established. Financial challenge was
significant according to the data collected and would be willing to join the securities market
to improve their financial situation as well as ensure the administrative structure is
convenient for the life of the firm in the long-run though they were skeptical on the risks and
challenges they would face.
The research therefore concluded that the option of approaching the securities market is a
worthy consideration by most developers though and their fears can be managed. It would
also be important to recommend that the public and management of various institutions be
educated on the securities exchange.