Factors Influencing Uptake Of Low Cost Housing In Kenya: A Case Of Nairobi City County Employees

ABSTRACT

The purpose of this study was to assess the factors influencing uptake of low cost housing in Nairobi City County government employees. This study was guided by the following specific objectives: to establish the influence of varying price levels on uptake of low cost housing in Kenya, to determine the extent to which disposable income influences uptake of low cost housing in Kenya and to determine the influence of loan repayment period on uptake of low cost housing in Kenya. This study was guided by two theories namely: Housing Adjustment Theory and the Economic Theory of Housing Tenure Choice. This study used descriptive survey research design approach. The target population comprised of all the civil servants working for the City County of Nairobi headquarters. Specifically, the study targeted the 531 top, middle and lower level staff respectively responsible for the day to day operations in the departments. For the case of this study the researcher used quota sampling technique to select 20% of the top, middle and lower level staff respectively working in the city county of Nairobi departments. The sample size was 106 possible respondents. This study used a questionnaire as the only data collection tool for primary data. Data collected in this study was analyzed via quantitative methods and assembled to form the final findings and interpretations. The SPSS program (Version 22.0) was used as the main statistical tool of calculating the expected parameters. Inferential statistics like correlation, ANOVA and regression were applied to establish the association between the dependent and the independent variables. The study concluded that there is a moderate agreement that; overall an increase in the pricing of homes reduces home affordability and vice versa. Most staff were worried of the price the government has set, they also agreed that the price levels relate well with set market prices by other organizations like real estate firms and that they were satisfied of the government policy on low cost housing and affordability. The study concluded that selected land prices in Nairobi County as per the government criteria were reasonable, whereas other land prices were extremely high. Associated land prices where the houses are built on is very costly, land prices are not harmonized in the whole of Nairobi County and that there is a poor system of land records and pricing is always not efficient. The study concluded that most staff moderately believed that the uptake of low cost housing is directly related to income levels for individuals, most civil servants/employees of Nairobi City County can afford to purchase bigger better quality houses compared to low income earners who have to struggle to obtain at least decent housing. The study concluded that the loan repayment period set by the government affect uptake of low cost housing and affordability to a very great extent and there is an optimal repayment period which would not always put unnecessary pressure on respondent’s income.