INFLUENCE OF RISK MITIGATION ON PERFORMANCE OF PROJECTS BY REAL ESTATE INVESTMENT TRUSTS IN NAIROBI METROPOLITAN AREA, KENYA

Abstract

Purpose of the Study: This study examined the influence of risk mitigation on the performance of projects undertaken by Real Estate Investment Trusts (REITs) in the Nairobi Metropolitan Area, Kenya. Specifically, it assessed whether effective and timely risk mitigation practices significantly improve project performance while contributing empirical evidence to contingency theory and REIT risk management. Methodology: The study adopted an ex-post facto research design targeting 171 respondents from three licensed REIT organizations managing 16 completed projects. Stratified random sampling produced 120 respondents, with 106 valid questionnaires analyzed using descriptive statistics and bivariate binary logistic regression to determine the influence of risk mitigation on project performance. Findings: The findings revealed that REIT project teams widely implemented risk mitigation strategies, with effective resource allocation and change management receiving the highest ratings, while risk avoidance was least emphasized. Logistic regression established that effective and timely risk mitigation had a statistically significant positive influence on project performance (B = 2.234, p < .001; Exp(B) = 9.333), indicating that projects applying effective mitigation practices were over nine times more likely to achieve improved performance than those with delayed or poorly executed mitigation. Consequently, the null hypothesis was rejected, confirming the importance of structured, adaptive risk mitigation in enhancing project success. Conclusion: The study concluded that effective, timely, and well-resourced risk mitigation significantly enhances the performance of REIT projects. Adaptive mitigation strategies aligned with project-specific risks improve project outcomes and support contingency theory. REIT organizations should strengthen risk governance through structured mitigation plans, adequate resources, and clearly assigned responsibilities.