Enhanced role of private sector through public private partnerships in low income urban housing in Kenya

Abstract

Purpose Low income urban housing in Kenya is underdeveloped as a result of uninnovative financing, hence the many slums and informal settlements in the country, hence the need for enhanced participation of the private sector through application of Public Private Partnerships (PPPs), which has been cited as one of the possible solutions. The purpose of this study was to investigate and make predictions of the need for enhanced role of private sector in developing low income urban housing in Kenya through PPPs. Design/methodology/approach Delphi method of research was used to forecast the enhanced role of private sector through PPPs in the development of low income urban housing in Kenya. Three rounds Delphi iterations using three panels of housing financiers (30 in number), housing developers (28 in number) and housing practitioners (30 in number) were used. Data was collected through questionnaires throughout the three rounds, where the first round was exploratory in nature, the second round built on answers from round one, while round three was based on answers from round two, after which the mean and standard deviation values were calculated to show the level of consensus. Findings Results showed that PPPs is one of the plausible ways through which low income urban housing in Kenya can be developed to address its shortage. Private sector in PPP transaction brings innovative technology, finance and efficiency, while government brings its assets such as land and other regulations long term contracts. Research limitations/implications The research was focussed on the Nairobi city county area in analysing the need for enhanced role of the private parties. It focussed on a panel of Housing practitioners-officers in the State Department for housing and Nairobi city county; housing financiers and housing developers, without interviewing the beneficiaries of the method. Practical implications It was, therefore, found out that PPPs models are applicable in developing low income urban housing because the country has the enabling environment for its effective application going forward. The implication of this study is that low income urban housing can be developed through the model. Social implications The slums and informal settlements will have adequate, affordable and quality housing being introduced within their neighbourhoods, which reduces political and societal animosities. Originality/value This research has benefited from published literature on PPPs and original research on PPPs.

Assessment of Stakeholders’ Engagement and Participation in Mass Housing Development

“…In the realm of housing, PPPs combine public oversight and private sector efficiency to address housing deficits more effectively than either sector could achieve independently (Babacan, 2020;Herath & Herath, 2023). PPPs in housing typically involve the government providing land, regulatory support, and sometimes financing, while private partners contribute investment capital, technical expertise, and operational efficiency (Batra, 2020;Giti, K'Akumu & Ondieki, 2020). This model aims to leverage the strengths of both sectors to produce affordable, high-quality housing.…”

Project Team Planning and Performance of Housing Projects in Kenya

“…Project team Planning is crucial for the successful execution of infrastructural projects in any organization (Tuyishime & Nyambane, 2021), and there exists a positive correlation between project planning and performance (Muute, 2019). However, despite the adoption of recommended project management practices by Kenyan contractors, the construction industry in Kenya continues to face significant challenges in project performance (Mwanza, Namusonge, & Makokha, 2020).In particular, housing projects have not contributed significantly to the country's economic growth due to delays and cost overruns (Giti, K'Akumu, & Ondieki, 2020) A report by Kieti (2020) reveals that out of eleven affordable housing project sites, only two have been fully delivered, two have been partially delivered, and seven have not been delivered at all. Furthermore, the report indicates that only 1,051 affordable housing units were delivered by 2019, accounting for a mere 0.7% of the intended 143,203 units.…”

Exploring constraining factors for use of private sector finance in delivery of public sector infrastructure in Tanzania: A qualitative study

“…Irrespective of the different funding mechanisms by the private sector for infrastructure projects, such as the build-operate-transfer (BOT) model (Cheung and Chan, 2009); taxpayer approach (de Vries, 2007); project bonds (Hutchison et al, 2016); project financing structures (Annamalai and Jain, 2013); PSF Initiative (PFI) (Wang, 2014); PPP mode (Chotia and Rao, 2018); innovative bond instruments (Prakash and Sethi, 2021); municipal banks and bond banks (Dollery et al, 2021); they are all facing implementation challenges. For instance, the dependence on uninnovetive (public) financing has led to low-income urban housing in Kenya being underdeveloped due to inadequate financing from the public sector, hence high housing supply backlogs, leading to the growth of slums and informal settlements (Giti et al, 2020). Despite the proliferation of funding mechanisms, there are different schools of thought about which is the most desirable option.…”