The Role of Environmental Audits in Enhancing Sustainability in Industrial Property Management. Insights From Nairobi County

Abstract

Nairobi, the capital city of Kenya, is experiencing significant environmental challenges, with pollution levels reaching unprecedented heights. This issue is particularly evident in the Nairobi River Basin, which comprises the Nairobi, Ngong, and Mathare Rivers. The basin is a focal point of concern due to the widespread discharge of untreated industrial waste into its waters. The city's high population density, coupled with the concentration of industries, exacerbates the environmental impact, making Nairobi the most affected region in the country in terms of pollution. Among the various sources, industrial pollution emerges as a major contributor, prompting the National Environmental Management Authority (NEMA) to intervene and hold accountable the industries responsible for these environmental violations. This study set out to analyze the role of environmental audits in the management of industrial properties, focusing on a case study of industrial properties in Nairobi. The research targeted three key industrial areas: Nairobi Industrial Area, Baba Ndogo, and the industries along Nairobi-Mombasa Road. The study's target population consisted of 487 respondents, comprising 440 property managers and 47 NEMA County directors. Using Yamane’s 1967 formula, the sample size was determined to be 211 respondents. The study employed a simple random sampling method for data collection, utilizing questionnaires and interviews to gather information. Data analysis was conducted using descriptive statistics with SPSS version 24, and interpretation was guided by a theoretical framework and previous research. The study found that environmental audits significantly enhance industrial performance by improving organizational effectiveness, ensuring regulatory compliance, and boosting competitive advantage. They also raise awareness of environmental impacts, enhance corporate reputation, and provide valuable data for investors. However, challenges such as corruption, regulatory bias, and high audit costs persist. The research underscores the importance of environmental management and recommends that property managers strategically implement audit systems to support sustainable industrial growth and regulatory compliance