Drivers for Capital Structures of Real Estate Firms in Kenya

This study sought to examine the factors that influence the capital structures of Real Estate Firms in Kenya. The study was guided by the following specific objectives: to assess the factors which influence the capital structures of Real Estate Firms in Kenya; and to examine the effect of capital structure on Real Estate Firms in Kenya.To undertake the study, a descriptive research design was used. This type of design involves an extensive well-focused literature review and identification of the existing knowledge gap. The method was preferred as it permits gathering of data from the respondents in natural settings. In this case, was possible for the researcher to administer the data collection tools to the respondents in their workstations, which was relatively easy and enhanced the response rate. The population of study was the Real Estate Firms registered with the Kenya Property Developers Association, whose number stood at seventy (70) as at June 30 th 2008. The respondent in each of the companies was the Head of the Finance function or the appointed representative. It would have been desirable to undertake a census of all the Real Estate Firms in Kenya, but owing to their big numbers and spread all over the country, which would have serious cost implications, a sample of thirty-five of the Real Estate Firm