Abstract:
Many low income earners in urban areas are unable to own houses due to economic hardships. However, there are some strategies that have been put in place to attempt to solve this menace. These strategies include using models which may also be obstacles not only to homeownership especially among low income earners but also to policy makers, financial institutions and other stakeholders interested in ensuring that more Kenyans and especially those living in Nairobi County access decent and affordable homes. This study is aimed at assessing three home ownership models, their impact on home ownership and to establish which of the three is the best for home-ownership among low income households in Nairobi County. Specifically, the study strove to establish the impact of long term mortgage model, short term loan model and housing co-operative model on acquiring a home in Nairobi County. The study used descriptive research design. The target population was economically active households who live at Ruai settlement area in Nairobi County. Simple random method was used to sample members of the households. Both open-ended and closed questions were used to construct the questionnaire which was one of the two instruments used in collecting data. The study also used a data capture form to collect secondary data that was used for regression analysis. The findings of the research were qualitatively and quantitatively analyzed evolving numerous findings. The collected data was analyzed using SPSS and various analyses such as exploratory factor analysis, Pearson‟s correlation coefficient and multi regression analysis were carried out. Key research findings are presented using frequencies and percentages and have been summarized in tables and figures. The study established that long term mortgage model is not viable and short term loan model is not the best for low income earners to acquire homes but established that housing cooperative model is the most ideal and viable model in the provision of decent and affordable shelter among low income households. The researcher recommends that intensive sensitization should be done among low income households so that they can embrace the housing co-operative model and better policies be put in place by the government and other partners to create enabling environment for low income earners to acquire homes.
