Effectiveness of Financing Strategies for Provision of Affordable Housing in Kenya
DOI:
https://doi.org/10.17613/4j49-j126Keywords:
Homeownership Savings Plan, Public Private Partnership, Direct Government Financing, Employer Assisted Housing, Provision of affordable housingAbstract
The provision of affordable housing in Kenya is critical given the urbanization and immigration in towns. The study sought to assess the effectiveness of financing strategies for affordable housing units in Kenya. The independent variables under study included; the influence of home ownership savings Plan/Mortgage, public-private partnership, direct government financing and employer-assisted housing approach on the provision of affordable housing units in Kenya. The targeted population were top and middle-level management of public and private institutions involved in the provision of affordable housing including property developers, mortgage companies, National Housing Corporation, Nairobi City County and the Ministry Department of Housing and Development in Nairobi Kenya. The total target population for the study was 100 top and middle-level management employees. The sample size was 86 with the study adopting purposive and stratified random sampling. Questionnaires were used to obtain relevant data which was analysed using SPSS to obtain descriptive and inferential statistical analysis. The study revealed that increased uptake of home ownership savings plans and mortgages leads to improved provision of affordable housing units. The study also noted that increased adoption of public-private partnership programs has led to an increase in the provision of affordable housing. The study also revealed that increased direct government funding towards the provision of affordable housing has enhanced the same. Finally, the study noted that increased participation of employers in the employer-assisted housing approach has improved the provision of affordable housing units. The study recommends that the government should regulate the interest charged on mortgages to reduce the cost of funding for affordable housing. Additionally, real estate developers should partake in public-private partnership programs to reduce the risks involved in the provision of affordable housing units. Finally, employers should directly develop housing units that benefit their employees.
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Copyright (c) 2023 Daniel Mutongi Amuyunzu, Abdifatah Ogle , Beatrice Abura, Julia Ngososei, Justin Nderitu, Lydia Ngigi, Salvatory Capis, Hilda Mugendi (Author)
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