Factors influencing ownership of housing by public sector staff in urban centres in Kenya: case of National Housing Corporation of Kenya

Abstract

Mortgage industry has experienced tremendous growth In the recent years with the institutions in the industry having to increase their investment in order to take full advantage of the opportunities available. On the other hand many civil servants are unable to access these mortgages due to high costs in terms of interest rates, conditional ties, and many other factors related to homeownership. The study seeked to establish and evaluate factors influencing home ownership by civil servants in urban centers and more specifically the study was to look at factors that influence home ownership in National Housing Corporation. This study will benefit various stakeholders which include Government, organizations, consumers, researchers, in respect to policy formulation, Buying decisions and knowledge enhancement as regards the subject. The methodology Adopted was systematic random sampling technique .The population of interest in the study was to consist of clients in six Estates of National Housing Corporation (Ayany, Olympic,Onyonka, Highrise, Kibera and Uhuru Garden). The sample population was 500 clients 50 were selected. Both primary and secondary data was used. Primary data was collected using self-administered questionnaires while secondary data was obtained from Company journals, web site, articles and brochures. The data was analyzed using descriptive statistical methods including measures of central tendencies and tables, graphs and pie charts. The end results were the determination of factors influencing home ownership and how best such factors will be managed. The limitations of the study include time constraints, unreturned questionnaires may lead to wrong conclusions and recommendations made. Findings indicated that home ownership is mainly influenced by the level of interest rates charged by firms in the housing industry in Kenyan market. In the case of NHC, in order to make homeownership to affordable to many Kenyans they need to need to find a way of varying repayment periods in case of default or when difficulties arise for its customers. They should also adjust there interest rates according prevailing conditions in the market without burdening there customers. It is therefore prudent for the organization to consider the plight of its customers as this is enable it increase its customer base and thus more profit.