Abstract:
Housing plays a very important role in the socio-economic development of any nation. One set of factors that impacts on the funding of the supply-side of housing are legal and regulatory factors. This paper sets to establish the relationship between these factors and funding of the supply-side of housing in Kenya and also the effect of the major stakeholders on such a relationship if it exists. Using a survey research design, primary data was collected by self administered questionnaires from a random sample of 212 branches in Nairobi of financial institutions drawn from a population of 43 commercial banks, 9 deposit-taking MFIs and three major financiers of housing development. Factor analysis, correlation analysis and ordinal logit regression were used. Results indicated a positive relationship between legal and regulatory factors and funding of housing development and a negative moderating effect of stakeholders on the relationship. The implication being the legal and regulatory framework should be effective enough to allow enforceability of contracts so as to improve efficiency of the systems in place and the suitability of stakeholders in their area of expertise in the construction industry is
important.
