A Study of Housing Finance Agencies in Nairobi, With Special Reference to Their Role in Low-income Housing
Abstract
Housing problems of one form or another exist
in countries allover the world. Howeve r-: the magnitude,
the scope, dimension, the fundamental causes vary
from one country to another. Kenya, like other countries
has come to realise that housing is an issue that is
complex in nature and that it is too central to national
development to be left solely to private initiatives.
J
As such since Independence the Government has been very
much involved in providing solutions to the problems of
housing. Other than making the policy the Government
has made many initiatives to finance housing. Since it
is not possible to adequately solve these problems the
Government has involved many other finance agencies to
try to ease the problems of housing.
fected provision of housing and especially housing for
The study focuses on the role of the housing finance
agencies in provision of housing for Nairobi population.
There exists problems regarding the policy frameworkwithin
which these agencies operate. There also exists
a problem in the terms and conditions laid down by these
finance agencies. These terms and conditions have aflow-
income groups.
Having noted the above proplems the author examined
the activities of eight selected--::£inanceagencies since
Independence. These housing finance institutions consist
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of both private and public finance agencies. A
special attention was paid on the policy made by the
Government and also the terms and conditions laid down
by the Housing Financing Institutions.
The study established that the policy has been
vague and unrealistic and has not met the housing need
of the majority of the Nairobi residents who include
the low-income groups. The policy statement is not
accompanied by programmes and finances and the agency
to implement these programmes. As a result most of
the projects implemented have favoured the middle and
l
high income groups. It is the author's contention
that these terms and conditions are too high and discriminating
against the low-income groups. The terms
are highly restrictive and tend to eliminate a majority
of the low-income urban population who cannot meet the
requirements.
In view of the above problems the study recommended
that there should be a clear cut policy on low-income
housing. This should be accompanied by programmes and
finances for implementation. Housing standards and design
should be compatible with the incomes of the urban
poor popu Lat Lon . The housing cooperatives who have a
great potential should be encouraged.