Browsing by Author "Karumba, Maryanne W."

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Mortgage financing and the performance of affordable housing government projects in Nairobi county
(KCA University, 2026) Karumba, Maryanne W.
The study sought to establish mortgage financing in relation to the performance of affordable government housing projects in Nairobi County. The study aimed to determine how the cost of capital for the targeted group, limited access to capital, lending products tailored to the segment's borrowers, and borrowers’ profiles impact mortgage financing for government-affordable housing projects. The study adopted a descriptive research design where the purposive sampling method, focusing on a specific category of respondents and was employed to select 84 units of the population that was determined through the Cochran sample determinant formula. The population comprised Operation and Credit Managers from leading commercial banks in terms of assets and customer base, microfinance institutions, and Ministry of Lands and Housing officers. A structured questionnaire was employed to gather quantitative data, while quantitative data was collected using interview guides. Quantitative and qualitative data analysis methods were used and included descriptive & inferential methods and thematic analysis based on study objectives, respectively. The study established that there is a statistically significant relationship between mortgage financing factors (cost of capital, limited access to capital, lending products alignment to the segment, and borrowers' profile) and the performance of affordable housing government projects in Nairobi County. The study recommended that there is need for the government to pay insurance to the financial institution to ensure security for mortgage financing for low income earners who are considered high risk by the lenders, there is also need of considering targeted housing support services and public-private partnerships which is also essential for supplying the required funding; financial institutions should develop customized products like micro-mortgages and income-based repayment plans, use alternative credit scoring techniques that take non- traditional income sources, and align lending products to low-income earners' mortgage financing unique challenges. Finally, there is a need to encourage the low-income earners to pay their debts that they take from financial institutions in order to build a good credit history that will make it easier to access credit in the future from financial institutions.