dc.description.abstract | This study examines the effect of rental income on the performance of Real Estate Sector
in Kenya over the past decade. In the study, a time series data from the last decade was
obtained from Kenya Revenue Authority, Hass Consult and World Bank Website. The
main objective of the study is to establish the effect of rental income tax on financial
performance of real estate sector in Kenya. The specific objective of the study is to
establish the influence of rental income tax on the performance of real estate sector in
Kenya, to determine the influence of technological advancement of the performance of
real estates in Kenya, to obtain the impact of inflation, taxation rate and penalty on the
performance of real estate performance in Kenya. A regression model was conducted to
establish the relationships between independent and dependent variables. Findings
revealed that rental income has a significant influence on the financial performance of
real estate sector in Kenya. This after the p-value of the study indicated that is its 2.1%
against the statistical significance level of 5%. According to the study, technological
advancement was the main influencer in the performance of real estates in Kenya after
the p-value indicated 2.7% against the statistical significance level of 5%. Further, the
study revealed that inflation, penalty each had 2.7% against 5% statistical significance
level of 5%. They contribute significantly to the performance of real estates in Kenya.
However, the rate of taxation does not make any significant contribution to the
performance of real estates in Kenya. This was occasioned by the fact that the rate of
income taxation on rental was constant throughout the study. Therefore, the contribution
of Taxation rate is nil. The study recommended that more study studies should be
conducted to establish the contributions of technological advancement, inflation,
penalties and fines on the performance of other branches of real estate. The study also
recommended that technological advancement should be given a priority by the Taxation
Authority (KRA) to continue boosting the Revenue in the economy. | en_US |