Analysis of housing finance in Kenya
Date
2009-05
Authors
Muketha, Benjamin
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study investigates the dynamics in the housing sector, in particular the role of
the central government and how commercial banks can support private sector in -,
residential housing development.
Housing has previously been analyzed as a social and economic problem . This
study looks at the role of banking in funding residential properties in Nairobi. Kenya
is a developing country with 46% of the population living below poverty line at USD1
per day. The country is unable to provide sufficient housing for low to middle income
groups, with 70% of the Nairobi population living in slum areas .
The banking industry in Kenya is comparatively well developed with banking services
available in all urban centres throughout the country. Commercial banks have,
however not played an active role in the development of residential housing in the
country. Funding for residential housing is limited to ready-to-occupy units for the
high-end income earners in the formal sector.
Financing for home ownership is relevant to the banking sector because it provides
new and profitable business stream. Home ownership is relevant to the Kenya
economy because it provides shelter, financial security and sense of dignity to the
home owner.
Description
Dissertation submitted in partial fulfillment of the degree of Master of Business Administration
Keywords
Housing finance, Real estate, Kenya, Housing