FACTORS AFFECTING ACCESS TO MORTGAGE FINANCE IN NAIROBI, KENYA

Mortgage finance plays a significant role in the development of the economy and in enabling people to be homeowners through provision of mortgages. Despite its significance, past statistics indicate that very few people access mortgage finance in Kenya as research indicates that at best only 3% of households in Kenya might be eligible for mortgage finance. The study was guided by four objectives which seek to find out the role of tax incentives, cost of capital, land registration systems and loan maturation period on access to mortgage finance in Kenya. This research employed the use of descriptive research survey. The research targeted 35 mortgage providers focusing on the management of the mortgage finance in Nairobi and walk in customers/clients at the particular time of study. The target population was 13,803 respondents. The researcher used purposive and simple random sampling techniques to sample its respondents. The sample size was 400 respondents. The questionnaires and interview schedule were used for the data collection. The research utilized descriptive analysis presenting the findings in tables, graphs and pie charts. Correlation and regression analysis was used to carry out inferential analysis Regression analysis model was used to find out the effect of tax incentives, cost of capital, land registration systems and loan maturation period on access to mortgage finance in Kenya. The study identified the independent variables: tax incentives, cost of capital, land registration systems and loan maturation period as very crucial in enhancing the access to mortgage finance as shown by their strong and positive relationship with the dependent variable i.e. access to mortgage finance. The study recommends that institutions that offer mortgage finance should foster the policy of providing incentives to potential home buyers in order to enable them access mortgage finance.