Effect of Government Funding to Growth of Housing in Kenya

Abstract

This study investigates the effect of government funding to growth of housing in Kenya. It considers Growth in Housing as the dependent variable and Ministry of Housing Budget, aggregate county government budgets, National Housing budget and Aggregate Kenya government budgets on Housing are considered as independent variables. Literature review was done in the areas of Government funding in Housing, Budgeting and growth in Housing to understand previous empirical studies in the area under the study. A descriptive research design will be applied to a population of 50 Government institutions; Ministry of Housing Budget, 47 aggregate county government budgets, National Housing budget and National treasury to provide accurate representation of situations and make inferences about the target population. The Study analyzed secondary data extracted from Government annual Budget estimates and reports from Kenya Bureau of statistics and National treasury annual budget estimates and financial statements of National Housing Corporation was used. Since the annual figures for independent variables were too large as compared with figures of dependent variable logarithm was used to control the size of the figures. ANOVA, MANCOVA and Bivariate correlation was used to find degree and direction of relationships among the variables. The findings established that Government funding of Housing through ministry of Housing has significant effect on growth of housing whereas NHC budget, County Government Budgets on Housing have no significant effect on growth of housing. The study further indicates that aggregate budget for ministry of housing; County governments and National housing combined has significant effect on growth of housing. The findings of this research would help the Government of Kenya and Agencies mandated to house Kenyans to evaluate the effects of its funding on growth of Housing and recommend more government funding on housing for its effect to be felt in growth of Housing.