Credit Facilities And Provision Of Housing Units In Nairobi And Surrounding Areas: Case Of Shelter-Afrique

ABSTRACT

Access to housing is a basic human right enshrined in the Sustainable Development Goals and Kenya’s Constitution 2010. Housing plays a huge role in revitalizing economic growth in a country. The main purpose of this study was to determine the effect of Shelter-Afrique on the provision of housing in Nairobi and its surrounding areas during the periods 2010 to 2015, through credit facilities granted to its clients. The study adopted descriptive research design; and it was ideal for this study because it gave an explanation as to how the dependent variables affect or were affected by the independent variables. The descriptive method helped in establishing priorities specific to areas under research while also evaluating the influence that Shelter-Afrique had on the provision of housing units in Nairobi and surrounding areas. The population used in this study comprised of all the clients of Shelter-Afrique in Nairobi including Developers, Commercial Banks, Micro-Finance Institutions and/or Housing Finance Institutions. The study will use 100% of the population, because during the considered periods, the total number of clients in different categories of funding by Shelter-Afrique was ten (10). The sampling frame for this study was a list of Developers, Commercial Banks, Micro-Finance Institutions and/or Housing Finance Institutions that are located within Nairobi and its environs, and are in ShelterAfrique’s portfolio. The sample was determined using stratified sampling technique. This method was helpful in dividing the sample into appropriate strata that were mutually exclusive. The population s categorized into strata that included Developers, Commercial Banks, and Micro-Finance Institutions that do business with Shelter-Afrique within Nairobi and its surrounding areas. Then a sample will be selected from each of the category depending on the size of the category. Data was analyzed and presented by using the quantitative method of data analysis where descriptive statistics were used. The study model was derived from the Positive Theory of Housing that stated that housing was part of the economy that utilizes resources, capital and energy. The general objective of study was to investigate the influence that regional financial institutions had on the provision of housing units in Nairobi and surrounding areas focusing on the role of Shelter-Afrique, a regional financial institution. The specific objectives included: To establish the effect of Shelter-Afrrique’s indirect intervention, through credit facilities to Developers, on provision of housing units in Nairobi and surrounding areas; To establish the effect of Shelter-Afrique’s indirect intervention, through credit facilities to Commercial Banks, on provision of housing units in Nairobi and surrounding areas; and To establish the effect of Shelter-Afrique’s indirect intervention, through credit facilities to MicroFinance Institutions and/or Housing Finance Institutions, on provision of housing units in Nairobi and surrounding areas. The results showed that Developers, Commercial Banks, MicroFinance Institutions, and Housing Finance Institutions have positively benefited from the partnership with Shelter-Afrique and that the partnership improved their capacity to provide housing units in Nairobi and its environs. This means that availability of Credit Facilities from Shelter-Afrique increased the provision of housing units in Nairobi and the surrounding areas.