Challenges Hampering Adoption of Different Housing Models to Access Housing by Households in Nairobi County

Authors

  • Francis Kamande The Co-operative University of Kenya
  • Wycliffe Oboka The Co-operative University of Kenya
  • Moses Gweyi The Co-operative University of Kenya

DOI:

https://doi.org/10.47604/ejbsm.2195

Keywords:

Housing Models, Housing Regulations, Mortgage, Cooperative, Affordability

Abstract

Purpose: This study aimed to assess the challenges hindering the adoption of diverse housing models for household access to housing in Nairobi County, Kenya. Utilizing the Public Interest Economic Regulation Theory (PIERT), the Q Theory of Housing Investment, and the Theory of Distributive Justice, the research explores the interplay between government regulations, market forces, and social equity in the context of affordable housing.

Methodology: Employing a descriptive research design, the study investigates the impact of housing regulations on housing access through mortgage and cooperative models. The research sample comprises 385 households, CEOs of housing financing organizations, and government officers. By analyzing the usage prevalence of housing models, the study delves into challenges such as high-interest rates, limited mortgage financing access, and insufficient awareness about housing options. The research employs a nuanced approach, considering the competitive dynamics within the housing sector and the need for equitable resource distribution.

Findings: The study reveals that the mortgage model is most prevalent (41.4%), followed by the incremental model (28.0%) and cooperative model (23.7%). High-interest rates, restricted mortgage financing access, and inadequate awareness about housing options emerge as significant challenges hampering housing model adoption. Additionally, housing regulations, vital for safety, impact affordability, with 39.2% of respondents acknowledging this influence.  

Unique Contribution to Theory, Practice and Policy: This study contributes valuable insights to the existing body of knowledge by synthesizing the PIER, Q Theory of Housing Investment, and Theory of Distributive Justice. The study therefore validates these theories by offering a comprehensive understanding of the intricate interplay between regulations, market dynamics, and social equity in the adoption of affordable housing models. The recommendations, including lowering mortgage interest rates, enhancing financing access, promoting awareness about housing models, and fostering collaborative efforts among stakeholders, provide actionable strategies for policymakers, practitioners, and researchers to improve housing access in Nairobi County.

Downloads

Download data is not yet available.

References

Bidabad, B. (2017), "Mortgage Securitization System (MSS) (a complementary system of Rastin Banking)", International Journal of Law and Management, Vol. 59 No. 6, pp. 778-783. https://doi.org/10.1108/IJLMA-05-2016-0045

Darinka, C. (2018). Collaborative housing and housing providers: towards an analytical framework of multi-stakeholder collaboration in housing co-production. International Journal of housing policy, 1(1), 55-81.

Darinka, C. (2018). Collaborative housing and housing providers: towards an analytical framework of multi-stakeholder collaboration in housing co-production. International Journal of housing policy, 1(1), 55-81.

De Jorge-Huertas, V. & De Jorge-Moreno, J. (2021), "Analysis of the effects of (de)regulation on housing prices in Spain 1977-2019", Journal of Economic Studies, Vol. 48 No. 6, pp. 1194-1206. https://doi.org/10.1108/JES-01-2020-0008

Farías, P. (2021), "Identifying the factors that affect the knowledge of mortgage loans' total cost", International Journal of Bank Marketing, Vol. 39 No. 1, pp. 69-84. https://doi.org/10.1108/IJBM-12-2019-0457

Giti, D.M., K'Akumu, O.A. & Ondieki, E.O. (2020), "Enhanced role of private sector through public private partnerships in low income urban housing in Kenya", Journal of Financial Management of Property and Construction, Vol. 25 No. 2, pp. 293-312. https://doi.org/10.1108/JFMPC-07-2019-0057

Green, M. (2017). Incremental construction: a strategy to facilitate access to housing. Environment and Urbanization, Vol. 20 No. 1, pp.89-108.

Jain, A. K., & Paliwal, M. C. (2016). Adoption of Appropriate and Cost Effective Technologies in Housing: Indian Experience. International Journal of Economics and Management Engineering, 6(5), 304-306.

Johnson, A. B. (2021). Housing Challenges and Government Interventions: A Global Perspective. Journal of Urban Development, 25(2), 112-129.)

Jud, D. G. & Winkler, D. T. (2003). The Q Theory of Housing Investment, Journal of Real Estate Finance and Economics, 27, 379- 392.

Kamau, F. K. (2014). Effect of Home Ownership Models On Rate of Owning Homes among Low Income Households in Nairobi County, Kenya

Kenya National Bureau of Statistics (KNBS). (2019). Kenya Population and Housing Census 2019. Nairobi, Kenya

Kipkirui, R., & Rotich, J. K. (2015). Urbanization Challenges and Housing Affordability: A Case Study of Nairobi. Journal of Urban Studies, 12(3), 45-62.

Lateef O. A. and Idrus, A. (2020), "What is determining affordable housing shortages in the Greater Kuala Lumpur, Malaysia?", Property Management, Vol. 38 No. 1, pp. 52-81. https://doi.org/10.1108/PM-05-2019-0025

Olanrewaju, A. and Woon, T.C. (2019), "An exploration of determinants of affordable housing choice", International Journal of Housing Markets and Analysis, Vol. 10 No. 5, pp. 703-723. https://doi.org/10.1108/IJHMA-11-2016-0074

Simón-Moreno, H. and Kenna, P. (2019), "Towards a new EU regulatory law on residential mortgage lending", Journal of Property, Planning and Environmental Law, Vol. 11 No. 1, pp. 51-66. https://doi.org/10.1108/JPPEL-06-2018-0017

Tajani, F. and Morano, P. (2018), "An empirical-deductive model for the assessment of the mortgage lending value of properties as securities for credit exposures", Journal of European Real Estate Research, Vol. 11 No. 1, pp. 44-70. https://doi.org/10.1108/JERER-01-2017-0007

World Bank, (2017). The Microfinance Revolution: Sustainable finance for the Poor.

Downloads

Published

2023-11-18

How to Cite

Kamande, F., Oboka, W., & Gweyi, M. (2023). Challenges Hampering Adoption of Different Housing Models to Access Housing by Households in Nairobi County. European Journal of Business and Strategic Management, 8(3), 93–114. https://doi.org/10.47604/ejbsm.2195

Issue

Section

Articles