Sangori, Roselyne AumaAluoch, Moses Odhiambo2024-11-142024-11-142024-08-16Sangori, R. A., Aluoch, M. O. (2024). Financing options and growth of real estate in savings and credit cooperative societies in Nairobi City County, Kenya. International Academic Journal of Economics and Finance, 4(2), 496-523.https://iajournals.org/articles/iajef_v4_i2_496_523.pdfhttps://ir-library.ku.ac.ke/handle/123456789/29380Journal ArticleThe challenges confronting real estate enterprises in Kenya, especially within Nairobi City County, are substantial, particularly regarding financing decisions given the capital-intensive nature of their projects. The evident gap between annual housing demand and actual supply underscores the critical need for effective financing mechanisms to bolster the expansion and development of the real estate industry. The research concentrated on investigating the impact of various financing options available through Savings and Credit Cooperative Societies in Nairobi City County is particularly relevant, given Savings and Credit Cooperativess' role in offering financial services to their members. Evaluating the effects of mortgage financing, lease financing, savings financing, and equity financing on real estate growth can offer valuable insights into the feasibility of different funding avenues for these enterprises. Considering the moderating influence of real estate firm size on the relationship between financing options and growth rates enriched the analysis, acknowledging that a firm's size and scale can significantly shape its financing strategies and growth trajectory. Drawing on theoretical frameworks such as the lien theory of mortgage financing, resource dependency theory, transaction costs theory, and housing cycle theory provided a robust foundation for understanding the dynamics of financing and growth in the real estate sector. Adopting a descriptive research design, along with panel data analysis spanning a five-year period, facilitated a comprehensive examination of trends and patterns among real estate firms operating within Savings and Credit Cooperative Societies in Nairobi City County. By employing a census approach to collect data from the entire population of 72 real estate companies, the study ensured a representative sample, enhancing the reliability and validity of the findings. The study found a significant and positive effect between mortgage financing, lease financing, savings financing, and equity financing and growth of real estate in SACCOs. The result indicated a moderating effect on the relationship between financing options and growth of real estate firms in SACCOs. The study concluded that the real estate sector in Nairobi City County requires effective financing and strategic decision-making, relying on mortgage, lease, savings, and equity financing to optimize resource allocation and drive growth, with SACCO size significantly moderating the impact of these financing options on firm performance. Based on the study findings, policy recommendations include reducing mortgage costs through subsidies and regulatory reforms, increasing lease financing options via innovative structures and Public-Private Partnerships, boosting savings financing through mobilization programs, facilitating equity financing with improved market mechanisms, and optimizing SACCO performance through targeted training. The study enriches understanding by demonstrating the significant impact of various financing options on real estate firm growth, advancing theoretical frameworks, addressing methodological gaps, and providing practical policy recommendations to support sector expansion.enArticle