SUSTAINABLE FUNDING STRATEGIES FOR LOW AND MIDDLE INCOME HOUSING MARKETS IN KENYA

Mungai, J.
Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology
Munala, G.
Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology
Wanyona G.
Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology

CITATION: Mungai, J, Munala, G., & Wanyona G. (2014). Sustainable Funding Strategies for Low and Middle Income Housing Markets In Kenya. International Journal of  Social Sciences and Entrepreneurship. 3(1), 116–133.

ABSTRACT

The context of this research study is housing especially for the low and middle income households. The rapid development of a housing finance has led to a radical transformation in mortgage sector in Kenya in recent years. The changing home mortgage market and unique financing requirements brought about by widespread homeownership have caused a continuing evolution in mortgage lending practice. This study sought to establish sustainable funding strategies that can be applied by low and middle income groups in Kenya. The objectives of the study were to analyse existing financial options and sustainable funding strategies with an aim of proposing an alternative sustainable funding strategy.
This research study was a causal design. The target population for the study was all mortgaging firms in Kenya that offer mortgage financing services, banks, MFIs and Sacco’s. The researcher used primary and secondary data. Primary data was obtained through self-administered questionnaires with closed and open-ended questions. The collected data was thoroughly examined and checked for completeness and comprehensibility. The data was then be summarized, coded and tabulated. Data presentation was done by the use of pie charts, bar charts and graphs, percentages and frequency tables. The study concludes by proposing two sustainable financing models for low and middle income groups. Self help housing model-for individuals constructing their own house construction and Shares financing model for a group of individuals/Chaama owning big land jointly.

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