Julius Orwa K’Obado

School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Nairobi Kenya

CITATION: K’Obado J.O. (May, 2015), Factors affecting delivery of low cost housing in Nairobi county, Kenya: International journal of Marketing and Entrepreneurship (IJEF), volume 1 (2), 153 -175. ISSN 2105 6008

Abstract

This research project focuses in a problem facing many developing countries among them Kenya: To establish the main factors affecting means of meeting the high demand for low cost housing in order to reduce the mushrooming of informal settlements found in most of the cities and towns in developing countries. One of the most critical issues facing the government of Kenya is how to meet the high demand for low cost housing in the cities and major towns but this study only concentrated in the Nairobi County where the acute shortage of low cost housing is more prevalent than in other towns in Kenya. The acute shortage in low cost housing could be due to frequent rural to urban migration and Nairobi being the Capital City of Kenya where most industries are concentrated thereby offering many job opportunities the majority of the immigrants would end up there. Appropriate policies can be set in such a way that both government and private developers get attracted to developing low cost housing. This research study adopted a descriptive approach on the factors affecting delivery of low cost housing in Nairobi County, Kenya. The researcher used a questionnaire as the data collection tool to collect views from the respondents. The study was carried out at various offices in Nairobi County. The target population for this study was 180 employees in Ministry of Land, Housing and Urban Development, National Housing Corporation, Housing Finance Company of Kenya, a few construction companies and financial institutions involved in housing development. A sample size of 54 respondents was selected randomly to take part in this study. Quantitative data collected using questionnaires were coded and analyzed by the use of descriptive statistics using SPSS (Statistical Package for Social Sciences) and presented through percentages, means and frequencies. The study concluded that land is the important factor in housing development and is highly valued in urban areas. Government incentives are effectively enhancing the growth of the low cost housing in Nairobi. In order for the housing to deliver low cost housing in Nairobi, the study revealed that there exist partnerships with private and government entities. The study concluded that mortgage interest rates are high and hence making them unaffordable for the low cost housing developers and also the end users. The study recommended that the private sector should be given incentives by the government to invest in low cost housing such as tax incentives, waving duty on materials for low cost housing.

Keywords:Low cost housing, Government Regulation, Building technology, Rental income, availability of Land, Financing.