Profiling Housing Co-operative Models in Addressing Shortage of Affordable Housing in Nairobi City County, Kenya

Abstract

Housing is a fundamental right and every person is entitled to this basic need. However, the biggest challenge facing Kenya is lack of affordable housing especially for low- and middle-income households in urban areas. We profile housing cooperative models and examine their suitability in addressing shortage of affordable housing in Nairobi City County. Specifically, we: (i) profile housing cooperative models adopted by housing cooperatives in Nairobi City County and (ii) examine the suitability of the models in provision of affordable housing. A qualitative approach using semi-structured interviews was adopted to generate data on how the housing co-operative models formed, membership characteristics, management practices, financing models and ownership practices. The paper is anchored on transaction cost theory. The target population consists of all active housing cooperatives registered by the State Department of Cooperatives in Nairobi City County as of December 2017. The sample size selection for this exploratory study was based on data saturation criteria. Purposive sampling technique was used to select 10 key informants, based on their technical expertise and knowledge. Thematic content analysis was used to analyze the qualitative data. Findings revealed that the limited housing cooperative model is most used among the members of housing cooperatives in Nairobi City County. However, the model failed to take into consideration collective efforts of members in terms of collective housing construction which bring down the total cost of construction. The paper recommends restructuring of housing finance system to take into consideration issues of low- and middle-income households for adoption of a multiple mortgage housing cooperative model.