Abstract:
This study critically examined regulatory compliance within Kenya's construction
sector, driven by escalating concerns regarding project implementation and the
persistent high incidence of building failures. The primary objective was to develop a
framework to enhance regulatory compliance, thereby improving quality and safety on
construction sites and ultimately reducing building collapses. The study utilised a
multi-theoretical lens to evaluate behavioural and institutional compliance drivers. The
outcome variable, level of regulatory compliance, was conceptualised through three
variables: registration status of a construction project (RS), conditions at the
construction project site (PS), and the status of the workforce at the construction site
(CW). Nine determinants of regulatory compliance were identified from existing
literature as: suitability of the project legal framework (SLF), proactiveness of
regulatory agencies (PRA), efficiency in regulatory processes (ERP), conduciveness
of the construction task environment (CTE), characteristics of the project client (CPC),
competency of project leaders (CPL), goodness of construction labour (GCL), stability
of the prevailing economic environment (SEE), and adherence to ethical factors
(AEF). The study employed a quantitative research strategy and a cross-sectional
research design to investigate compliance drivers. The target population comprised all
construction projects in Nairobi City County enumerated in the National Construction
Authority (NCA) 2023 database. Primary data was gathered through questionnaires
administered to a randomly selected sample of construction site supervisors
representing 261 projects, while objective secondary data was sourced from the NCAs
OPRS. Data analysis involved descriptive statistics, confirmatory factor analysis
(CFA), correlation analysis, and multiple regression analysis (MRA). The study
revealed a significant lack of compliance at the project registration stage, with only
26.22% of projects being registered. Furthermore, a medium compliance rate of
64.75% was observed for registered projects during implementation, falling short of
the industry's vision of at least 90% compliance. It was established that SLF, PRA,
CTE, CPC, CPL, and GCL collectively accounted for 67.8% of the variability in
regulatory compliance. Several significant barriers to regulatory compliance were
identified, including bureaucratic hurdles, corruption, and financial constraints. In
response, the study recommends a regulatory framework that advocates for a strategic
shift from a deterrence-based approach to a mixed, responsive, and service-oriented
framework. This new approach emphasises regulators assisting in compliance and
leveraging technology to promote adherence. Moreover, the study proposes the
conferment of regulatory responsibilities upon the project client, granting legal
recognition to Project Execution Plans (PEPs), and institutionalising the role of
regulatory compliance champions within project structures. This research, therefore,
significantly contributes to the understanding of regulatory compliance in the Kenyan
construction industry and offers practical measures for its enhancement, ultimately
fostering safer construction practices.