The Challenges of Housing Development for the Low Income Population in Kenya; a Case of Eldoret Town

Abstract

The main purpose of this study was to investigate the challenges of housing development for the low income population in Kenya. The objectives of the study were; to identify the motivation behind the players in the housing industry, to analyze the methods of housing provision by existing housing developers for the low income market, to examine the challenges faced by housing developers in the low income market and hindrances to their efforts, to evaluate the challenges faced by low income people in accessing housing and to consider how best to manage the challenges identified so as to increase rate of housing provision. Random stratified sampling was employed to obtain a reasonable sample size for administering questionnaires. Sample size of 100 was used due to financial and time constraints. This means that the researcher sampled 20 residents from the five estates, 20 from housing developers, 20 from housing financiers, 20 from ministry of housing employees and 20 from other related departments. The tools that were used included notebooks, questionnaires, camera and pens. The questionnaires were used to gather information directly from sampled respondents. The questionnaires had both open-ended and closed ended questions. The data collected from the field using questionnaires, interviews and observation were computed and organized into categories. The data was presented in an organized format to allow for in depth analysis. The data was presented in form of explanatory texts, tables, pictures and pie charts. The data collected was analyzed using descriptive tools. The study findings indicated that the motivation behind players involvement in housing industry in Eldoret town include maximum profit motive, social need motive, Government incentives and availability of low cost building materials and technologies. In addition, the most practical methods of housing provision by existing housing developers for low income market include Provision of housing through mortgages, Public-private partnership, Provision of site and service and Funding by international bodies. However, the challenges encountered by housing developers in venturing into low income markets in Eldoret include Low return on investment, Rising cost of land, complex land acquisition process, High interest on capital finance, Scarcity of land with Infrastructure and outdated planning regulations. It was further found out that among the strategies identified to manage challenges on accessing low cost housing in Eldoret town included provision of low cost building materials, use of appropriate building technologies, low interest rates on building finance, sourcing funds from international communities, elimination of cultural barriers on property ownership and management and change of the current building code.