Challenges of international housing finance institutions:The case of Shelter Afrique

Abstract

Financing plays a major role in the housing sector and the fact that many individuals solve the housing problem by renting does not alter the role of financing in the provision of rental units whether they are provided by the public or private sector. However, this financing is not without challenges. This study sought to find out the specific challenges faced by international housing finance institutions in Africa today. The research objectives are geared towards establishing challenges faced by international housing finance institutions in Kenya and to show the effect of country interest, inflation and exchange rates on the performance of housing projects. The population comprised international institutions offering housing finance in Kenya. I The research was conducted through a case study design the target organization being Shelter Afrique. Primary data was obtained through the use of an interview guide while secondary data was sourced from the Central Bank of Kenya, Shelter Afrique project tiles and other write-ups on the subject. Analytical and conceptual models were used in finding out the relationship between performance of projects with respect to movement of interest rates, inflation and exchange rates. The findings of the study revealed that the major challenges experienced by Shelter Afrique were as a result of unpredictable changes in the macroeconomic environment Performance of housing projects funded Shelter Afrique were also affected due to these changes resulting into enhancement of credit risk. During the period under review Shelter Afrique did not forecast the macroeconomic variables but put in place measures to manage them.