Restructuring Strategy and Performance of Real Estate Companies in Nakuru County, Kenya

Abstract

Real estate companies in Kenya play a vital role in promoting economic wellness. However, these companies continue to grapple with performance challenges manifested in inadequate revenue growth and profitability, which deters long-term sustainability. The current research examined the effect of restructuring strategy and performance of real estate companies in Nakuru County, Kenya. The study was guided by Ansoff matrix theory. It adopted a descriptive research design involving a mixed method approach. The unit of analysis was 24 selected real estate companies registered by the Nakuru County Department of Lands, Physical Planning, Housing, and Urban Development. The unit of observation was 72 including 24 managing directors, 24 financial managers and 24 sales managers. A census approach was used adopted. Data was collected using a structured questionnaire and analysis was aided by Statistical Package for Social Sciences (SPSS) version 25.0 software. Descriptive and inferential methods were employed in analysis. The results indicated a significant relationship between restructuring strategy and performance (r = 0.561, p < 0.05). Additionally, the coefficient of determination (r² = .315) shows that restructuring strategy explains 31.5% of the variation in performance. The study concludes that restructuring strategy enhances performance, emphasizing the role of continuous strategic adjustments in achieving optimal results. The study recommends that real estate companies adopt dynamic restructuring frameworks that align resource reconfiguration and strategic agility to drive performance.