Abstract:
Exponential growth of the urban areas has been brought about by the migration of people
flocking into cities in search of better economic opportunities, better healthcare and the promise of
a better life. This rapid urbanization has brought pressure on the delivery of affordable housing
which is reliant on the various models of housing finance. Mortgage financing and commercial bank
institutions have been on the forefront in the provision of financial services to developers for various
types of housing developments. However, the housing construction development in Nairobi has been
challenged by bureaucratic red tape on the provision of funds by these commercial banking
institutions. Delayed disbursement of funds for housing construction due to very stringent conditions
based on macro-economic, risk, stakeholder competence and regulatory variables has become a
norm and outcome. Joint venture financing is thus becoming a feasible housing finance alternative
This study sought to examine the relationship between; the macro-economic factors, risk
perceptions, project team competence, legal and regulatory framework, that directly and indirectly
influence the adoption of the joint venture financing option towards the development of housing. The
research design used in this study was survey research design. Stratified random sampling was used
to select the sample size to ensure representativeness. The population size for this study was 1516
stakeholders. Data was collected from 73 respondents from the Kilimani ward using an online based
questionnaire. Only 58 respondents provided feedback to the questionnaires. Secondary data was
obtained from academic papers, journals and published reports from government agencies. The
result was presented using charts, frequencies and percentages. The study recommends that the
government enhances the formulation and implementation of feasible and sustainable frameworks;
economic, fiscal and land policies that will be all inclusive to the stakeholders of the housing and
construction sector. Capacity building by, establishment of training and knowledge centers which
will address the generic joint venture issues. The issues include; standardization of joint ventures
contracts, determination of ownership structures, control elements of the joint venture, risks
mitigation approaches from operational, technical and strategic points, and knowledge sharing of
the current building technologies that are more efficient, less costly and faster to build. We can also
bring in the industry best practices on what requirements are required when tapping the various
competencies of the various team members to ensure that the entire fit is working in synergy.