Assessing the Role of Financial Institutions Towards Affordable Housing to Middle Income Earners in Kampala Capital City

Abstract

The general objective of the study was to assess the role of financial institutions towards affordable housing to middle income earners in Kampala Capital City. Specific objectives were to: (a) assess the role of mortgage financing towards affordable housing to middle income earners in Kampala Capital City; (b) assess the role of housing loans towards affordable housing to the middle income earners in Kampala Capital City and (c) assess the role of housing finance towards affordable housing to the middle income earners in Kampala Capital City. A case study design was used. A sample size of 113 respondents was selected using both probability and non-probability sampling methods. Purposive sampling was used to identify top management officials such as bank managers, directors and loan officers while systematic sampling was employed to select customers of financial institutions. Qualitative data analysis commenced with identification of themes and categories that were evaluated and analysed to determine adequacy of information, credibility, usefulness, consistency, validation or non-validation of hypothesis. Quantitative data was analysed using frequencies and percentages plus Spear Man's Rank Correlation and coefficient of determination. Findings revealed a weak positive effect ( = .312) of mortgage financing towards affordable housing and accounted for 9.7% change in affordable housing. This study also established a moderate positive effect ( = .472) of housing loans towards affordable housing and accounted for 22.3% change in affordable housing. Findings further revealed a weak positive effect ( = .345) of housing finance on affordable housing and contributed to 11.9% change towards affordable housing.