| dc.description.abstract | The financial performance of investment banks has been on the rise globally. This is due
to incorporation of diverse portfolios in various sectors such as real estate, manufacturing,
and mining among others. Nevertheless, there has been a low profitability in the Kenyan
investment banks. This low profitability has been partly caused by decline in value of
investments made through banks by investors. This study investigated the effect of real
estate investment management on financial performance of investment banks in Nairobi
County, Kenya. Specifically, it examined the effect of rental property investment
management, real estate mutual funds management, real estate investment trusts
management, and real estate investment bonds management on financial performance of
investment banks in Nairobi County, Kenya. The three theories that guided the study were
Modern Portfolio Theory, Duesenberry’s Accelerator Theory of Investment and segmented
markets theory. The study used descriptive research design. The target population was 22
investment banks in Nairobi Kenya whose respondents were 657. Simple random sampling
method was used to obtain a sample 30 percent of all categories respondents resulting to
204 respondents. This study used a questionnaire and secondary data collection form to
gather data. The research conducted a pretest at Kenya Commercial Bank and
Consolidated bank in Meru County which was 10 percent of the sampled population of the
study. Validity was measured through three types which were content, criterion and face
validity. It analyzed both quantitative and qualitative data collected. Under the quantitative
data, the study analysis provided descriptive statistics such as frequencies, percentages and
mean. Inferential analysis generated included model summary to test the level of effect,
analysis of variance to test hypothesis and regression coefficients to test the study’s model.
It was found out that there were few policies in place to ensure that investment banks made
commission payments to various involved parties in a short-duration of time; Investment
officers in the bank also lacked in depth knowledge on what real estate equity funds or how
they worked; The available information provided by the bank through the brochures and
their websites was so shallow and did not provide details such as rules and regulations of
investments, income patterns for a specific time and hence did not help much. The study
concluded that real estate investments had an effect on financial performance of investment
banks in Nairobi County. The study recommends that banks’ management should introduce
policies that would give precise details on what the expected turn-around for allocation of
returns would be to the investor’s accounts. In addition, the bank management should
provide orientation training programs to investors on what and where exactly they should
invest in as far as real estate investing is concerned | en_US |
