Indigenous Construction Business Financing a Case Study of National Construction Corporation of Kenya

Abstract

Construction business requiresmore than more additional funds. With some training, especially in the management of business, the construction businessmen could raise enough funds internally so that the need for external funds would not arise. However when there is a genuine need for additional funds the indigenous construction businessmen find it difficult to obtain the same. First there is the stiff CO!ll,!JtILsotri, from other-.bus i nesasen , These bUGil!;;Gsme~ are also inexperienced in the art of presenting -their need for additional funds. They have also been in business "for a relatively short period and hence the financiers would not be able to assess their previous performance. The Government of Kenya created the National Construction Corporation to help these indigenous construction businessmen in solving their problems. In playing its role as financier of the indigenous construction business the National Construction Corporation could adopt practices that make it difficult for the ~ndigenous construction businessmen to benefit effectively. The main objective of this study was to evaluate the effectiveness 0= the National Construction Corporation as an instrument of financing indigenous construction business.