Effect of Financing Decisions on Performance of Housing Cooperative Societies in North Rift Counties, Kenya
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Date
2020-10-30
Journal Title
Journal ISSN
Volume Title
Publisher
Africa International Journal of Multidisciplinary Research (AIJMR)
Abstract
Housing is one of the largest concerns facing
most countries of the world, where the
increase in the numbers of the population are
not corresponding with the available housing
facilities. The huge demand of housing has
resulted in making the housing sector to be
one of the lucrative sectors to venture into in
Kenya but unfortunately, lack of adequate
information on financial management
practices, greed and insufficient resources having replaced reason, has led to contractors constructing
buildings that are extremely unfit for human occupation, stalled structures and low returns on housing sector
investors. This has prompted the Kenyan government to recognize housing as one of the big four agenda of the
current Jubilee government. Specifically, the study determined the effect of financing decisions on performance
of housing cooperatives in North Rift Counties in Kenya. The study was guided by. The study used descriptive
survey design. The study targeted 90 respondents from 12 housing cooperatives registered by NACHU in the
North Rift Region. The respondents included all the management committee members, credit committee
members and finance officers of all housing cooperatives in the North Rift Region. The study adopted a mix of
quantitative and qualitative techniques in data collection and analysis. Primary data was used and the data
collected using open self-structured questionnaires. Content validity was used to determine the validity while
Cronabach’s alpha coefficient was used to determine the reliability of research instrument. Data was analyzed
using both descriptive and inferential statistics. For descriptive statistics frequency tables, percentages and
means were used and for inferential statistics correlation and regression analysis were used. The SPSS
Version 24 helped in the data analysis. The study findings indicated that there was a positive and significant
effect of financing practices on performance of Housing Co-operative Societies (β=0.456; p<0.05. These
findings will be of great significance to managers and policy makers to open an insight on the policies which
will enhance the performance of the housing cooperatives. It will also provide input for further research works
to be conducted on the housing cooperative societies in the future.
Description
Keywords
Financing Decisions, performance, housing cooperatives societies