Factors affecting the uptake of Public-Private Partnerships in affordable housing projects in Nairobi County, Kenya

Abstract

The purpose of this research was to assess the factors affecting the uptake of Public-Private Partnerships (PPP) in Affordable housing projects in Kenya. This research was guided by the following specific objectives; to investigate the effect of the regulatory framework on the adoption of Public-Private Partnerships in affordable housing projects in Kenya, to examine the effect of financing viability on the adoption of Public-Private Partnerships in affordable housing projects in Kenya, to establish the effect of stakeholder participation in influencing the adoption of Public-Private Partnerships in affordable housing projects in Kenya and to determine the effect of risk-sharing mechanisms in the adoption of Public-Private Partnerships in affordable housing projects in Kenya. The study applied three theories namely, Transaction Cost Economics (TCE) Theory, Resource Dependence Theory (RDT) and Institutional Theory. Descriptive research design was employed. The target population for this study was all the 74 real estate developer companies. Each company contributed four staff members, making the number 296 staff involved in overseeing the operations of the real estate developer housing projects. A sample of 296 was considered for the study. A pilot study was done to ensure the validity and reliability of the data collection tool. The data collection instruments for this study included a questionnaire and an interview guide. To improve the reliability of the research instruments, pilot testing of the research tool was done where a sample of 15 participants was picked from the study population to participate in the research. These pilot test respondents were not used in the main study. The data was then analyzed using descriptive statistics. The descriptive tool (SPSS) was used to analyze the data with interpretation in percentages, frequencies, mean score and standard deviation. The findings were presented using tables and graphs to facilitate comparison. Besides, the researcher also conducted inferential statistics to understand more about the in-depth relationship between the variables. The key findings of the study was that the variables have a significant influence on the uptake of the affordable housing projects by the real estate developers in Nairobi. The study also found out that there exists a complex relationship between factors that affect the uptake of PPPs in Nairobi’s affordable housing sector. In statistical terms, the regulatory framework displayed a positive but non-significant relationship with PPP uptake. Stakeholder participation emerged as a critical catalyst for adoption.