DETERMINANTS OF MORTGAGE GROWTH IN SELECTED MORTGAGE INSTITUTIONS IN KENYA
Abstract
The main objective of this study was to investigate the determinants of mortgage growth in selected mortgage institution in Kenya. The specific objectives of the study were: To determine the influence of interest rates, regulations, income level and employment status on mortgage growth. The study used descriptive design. The target population was 18 mortgage lending institutions in Kenya. Census approach was used. A sample of 54 respondents from operation managers, credit managers and customer relation officers was selected. Questionnaires were used for collecting data. The data collected was then coded and analyzed using inferential statistics. Finally, the collected and analyzed data was presented in tables. The findings indicated that there was a significantly positive relationship between interest rate and mortgage growth (r=0.294, p=0.000). The results further showed that there was a significantly positive relationship between regulation and mortgage growth (r=0.449, p=0.000). The results in regression coefficients established that that income level and mortgage growth were positive but insignificantly related (r=0.133, p=0.093). Further the results findings indicated that employment status and mortgage growth was positively and significantly related (r=0.253, p=0.003). The study recommended that proper policies should be put in place to ensure the stability of interest rates. The study also recommended that the government should put in place sufficient regulations and incentives to promote the mortgage industry. The study further recommended that there is need for real estate developers to ensure development of strategies to target low income level and finally the study recommended the stakeholders to create more employment as this will increase the mortgage uptake in Kenya.
Key Words: Interest Rates, Regulations, Income Level, Employment Status, Mortgage Market
CITATION: Kabwithia, E. M., Were, E., & Kiama, M. (2019). Determinants of mortgage growth in selected mortgage institutions in Kenya. The Strategic Journal of Business & Change Management, 6 (3), 160 – 175.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1306
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