Project Financing Design and Implementation of Affordable Housing Projects in Nairobi Metropolis, Kenya.

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Abstract

Affordable housing has become a major concern to many governments. The debate in this area has extremely grown both nationally and internationally after a series of recorded ballooning of population and the mushrooming of informal settlements in the environs of our cities and towns. This study seeks to explore the project design and implementation of affordable housing projects in Nairobi metropolis, Kenya. The objectives considered in this study are: To establish the influence of Project Financing Design and to check the moderating role of Regulatory framework between Project design and the implementation of affordable housing projects in Nairobi metropolis, Kenya. To achieve the set objectives, the study develops research hypotheses and was statistically tested at α = 0.05. The theories on which the study was hinged are stakeholder’s theory and open system theory. The study adopts a descriptive research design, and used both qualitative and quantitative approaches. The study looked at a population of 11 affordable housing projects in Nairobi metropolis with 101,565 number of units. Census sampling used a sample of 220 professionals working on the affordable housing projects. These officials are directly involved with project design and the implementation of affordable housing in Nairobi metropolis, Kenya. The study used open-ended and closed-ended questionnaire as the main mode of data collection. Primary data was collected using structured questionnaires. Secondary data was collected from institutional documents, State Department of Housing and Urban Development publications, and relevant publications in referred journals. The collected data was edited, coded and entered into SPSS software for analysis. Data was analyzed using descriptive and inferential statistics. In particular, Regression Analysis was used to investigate the relationships between hypothesized variables. Analysis of Variance (ANOVA) was also used to investigate whether independent variables have a combined effect on the dependent variable. The data was analyzed through the use of descriptive statistics. ANOVA, t-test, Pearson correlation, p- values and coefficient of determination. Data was presented using frequency tables, figures, graphs and pie charts. This study examined the factors influencing affordable housing implementation in Nairobi metropolis, focusing on Project Financing Design and Regulatory Framework. The research found that all these factors significantly impact housing project success, with Project Financing Design having the strongest positive effect (29.8% increase per unit improvement). The study emphasizes the importance of integrating environmental considerations, developing robust financing strategies, streamlining regulatory processes, and ensuring effective technical planning in housing initiatives.

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