National Housing Corporation (NHC) is a state-owned enterprise established as the sole agent in the implementation of the government’s housing policies and programmes in Kenya. Despite continuous funding by the Kenyan government and cooperate sponsors, little information is available on the challenges faced by NHC in obtaining adequate funds, and the sustainability of these sources of financing in delivering affordable, decent, and adequate housing to the Kenya’s growing population.
This study sort to analyze the available sources of external finance to projects in National Housing Corporation (NHC) and their extent of utilization in delivering housing units. To achieve this objective, primary data was obtained using self-administered questionnaires to NHC staff while secondary data was obtained from NHC’s audited financial statements and construction contract documents.
The study adopted a cross-sectional study design. Both Descriptive and inferential statistical methods were used to analyze the data. The findings show that external funding seems to be diminishing from year to year and thus making NHC rely on its government funds. On the level of utilization of funds from each source of funds, the finding was that government funding was least utilized in terms of the amounts and units produced while Public Private Partnership is highest utilized. Further, the study shows that lengthy procurement process and lengthy approval process were challenges rated to have worst affected NHC ability to acquire funds. The findings of this research will benefit NHC and the Government of Kenya in actualizing its mandate in delivery of affordable housing to the nation by providing sustainable and cheaper alternative sources of funding for its housing projects.