Influence of Sustainable Housing Finance Mechanisms on Socioeconomic Development of Residents in Machakos County, Kenya

Sustainable housing finance mechanisms are important instruments for improving access to affordable housing and supporting socioeconomic development. This study examined the influence of sustainable housing finance mechanisms on socioeconomic development among residents of Machakos County, Kenya. It focused on financing approaches associated with the Affordable Housing Programme, including rent-to-own schemes, subsidies, government support, land provision and other affordable housing finance arrangements. The study was guided by Programme Theory, which explains how programme inputs and activities generate outputs, outcomes and long-term impacts. A descriptive survey research design was adopted. The target population comprised Affordable Housing Programme beneficiaries and Micro, Small and Medium Enterprises operating within Machakos Central and Mavoko Sub-Counties. From a population of 3,530 respondents, a sample of 359 was selected using stratified and simple random sampling techniques. Primary data were collected using structured questionnaires measured on a five-point Likert scale. A total of 339 completed questionnaires were returned, representing a response rate of 94.4%. Data were analysed using descriptive statistics, Pearson correlation analysis and linear regression analysis. The findings indicate that sustainable housing finance mechanisms are positively associated with socioeconomic development outcomes. Respondents reported improvements in employment creation, poverty reduction, local economic activity, access to utilities, infrastructure, healthcare access, housing quality, affordability, safety and security. The regression results showed that housing finance interventions explained 40.6% of the variation in socioeconomic development outcomes. The ANOVA results indicated that the model was statistically significant. The study concludes that sustainable housing finance mechanisms contribute to socioeconomic development by improving housing affordability, supporting home ownership, enhancing household stability and stimulating local economic activity in Machakos County.