ASSESSING THE IMPACT ON HOUSING PREFERENCES OF LOW-INCOME

TENANT HOUSEHOLD .CASE STUDY OF MATHARE NORTH,NAIROBI.

1.0 INTRODUCTION
The urban population in Kenya has been growing fast. This demographic growth is often
accompanied by physical expansion of the centres to include what were formerly peri-urban
areas into the realm of urban administration. For example, while in 1969 there were 48 urban
centres (defined as centres with 2000 inhabitants) with a total population of 1.08 million, or
about 10% of the total national population, these increased to 91 in 1979 with a total population
of 2.3 million, or about 15% of the national population. In 1989 there were 172 urban centres
with a population of 4 million, or about 17.6% of the estimated national population of 22.7
million. This rapid growth has placed a strain on the capacity of the urban authorities to provide
required basic infrastructure and urban services.
Urban migration has increased, municipal boundaries have expanded, but service standards have
stagnated and per capita urban expenditures have typically declined. Most urban immigrants are
poor and lack marketable skills. They therefore end up unemployed, or operate as hawkers, petty
traders, casual labourers, semi-skilled and unskilled with no permanent source of income. With
the present scenario, market forces tend to operate against the majority of the urban residents,
where in effect over 40% of Nairobi's residents cannot afford a minimum conventional dwelling
unit. Other towns with less resources than Nairobi find up to 80% of their inhabitants
marginalized in obtaining access to housing and other services.
Although the basic infrastructure and services are often considered sectorally, it should be
recognized that a housing project for instance, includes local infrastructure including roads,
water, sanitation, waste disposal, energy, etc. When urban authorities fail to devise appropriate
means for the majority urban poor to get access to housing, they invariably deny them all the
support services that go with housing. While it is true that local authorities and the central
government have a weak revenue base arising from both the national and international economic
situation, it is equally true that efforts by other agencies or even by the poor themselves to
provide access to selected urban services is hampered by public policies.
The planning regulations, the building by-laws, monetary and fiscal measures atc are among
some of the public regulatory policies that militate against the private sector, NGOs, CBOs or
individuals to provide legal affordable housing facilities and services to the vulnerable groups.
These policy instruments have lead to high costs of built environment relative to the income of
urban residents, who have increasingly become marginalized.
1.1 BACKGROUND
It is clear that the vast majority of cities in emerging nations are going urbanization.
Urbanization is partially brought on by both natural urban population growth and rural-to-urban
migration. According to the Kenyan population census report from 2009, the majority of
households (74.9%) in urban areas rent their homes, whereas the majority of households (87.3%)
in rural regions own their homes, the majority of which were built using the self-help technique.
In Nairobi, just 18% of people own their homes, compared to 82% of renters.
Low-income households1 who predominately live in the Eastern region of Nairobi city make up
the majority of individuals who rent houses. There are an estimated 20,000 housing units
available in Nairobi City per year, which leaves a surplus of 80,000 housing units in the city.
Only 20% of newly built housing units are aimed at low-income households, with the majority
(80%) being high-income. Despite government intervention over the past 10 years, there hasn't
been a noticeable increase in the availability of affordable housing.
The Kenyan government is now evaluating the 2004 Housing Policy document, which is meant
to serve as a roadmap for helping low-income people find decent, cost-effective housing. In its
Second Medium Plan (2013 to 2018), the Kenyan government has included a variety of
programs aimed at closing the gap between the supply and demand of affordable housing.
Adoption subsidies and regulations are some of the approaches planned.

1.2 PROBLEM STATEMENT

Rapid urbanization has made it extremely difficult for low-income people to find
accommodation. Due to suppliers' low incentive goals vs larger profit margins in the high
income market, there is less investment in low income housing. Low income people are now
unable to afford to purchase the socially desirable home because of rising housing costs. Despite
government efforts to address the issue, low-income earners'3 access to housing has not been
successful. Lack of thorough research on the preferences of low-income households has resulted
in the implementation of ineffective policy solutions that may effectively solve housing issues.
This study will research low-income households' choices for housing and their readiness to pay
for particular dwelling features, as well as their interests and preferences in regard to housing and
local features. In order to address low homeownership and other housing issues impacting low
income households, the study will enable the formulation of effective policy solutions.

1.3 Research objective

The main goal of this study is to shed light on two aspects of housing preferences: the
socioeconomic and financial situation of low-income tenant households and their willingness to
pay for home ownership in the study area[ MATHARE NORTH); additionally, the study will
delve into the priorities and preferences of the households taking into account both housing and
neighborhood characteristics.
1.4 Research questions
What are the housing preferences of a group of low-income households in the research region, in
order to fulfill the aforementioned objectives? What qualities of home and the surrounding area
are most important to them? What types of legislative initiatives are necessary to encourage
home ownership and solve housing issues affecting low-income renter households?
1.5 study assumption
It was assumed during the course of this research that:
I. The information obtained from respondents is accurate, and the key informants provided
accurate information to the best of their ability.
II. The sample size is appropriate for the study area.

1.6 study justification

Whereas many argue that a number of studies have been carried out in the area of housing for
low-income groups, it is worth noting that scarce material s and knowledge exist in the area of
policy and institutional framework through which implementation of such programmes takes
place. In Kenya, like man y other developing countries, the discrepancy between policy objective
of housing the low-income group s and outcome is reflected in the growth of unplanned
settlements. In this respect, a number- of studies has been carried out with an aim of availing
relevant information. Most of these studies have concentrate d either on policy or
implementation , and have made very marginal attempt s SO IDS/WP 485 to merge the two as a
process like this stud y intend s to do . Besides, urban area s are constantly changing and hence
the constant nee d to avail fresh data which is necessary for policymaking and/or review as well
as planning. Above all, my persona l desire to explain some of the persistent housing problem s
of the urban low income groups, has greatly contributed to the conceptualization of this study. In
Kenya, the continued housing crisis inspie of a number of housing programmes aimed at low-
income groups, demand s that an evaluation of this phenomenon be made.
1,7 ORGANIZATION FOR STUDY
First Chapter: Introduction
The backdrop of the problem, the problem statement, the study objectives, the assumptions, the
importance, the rationale, the scope, and the limits are often included in this section, which
contextualizes the whole research. It specifies the subject and the region of interest.
Second chapter: literature review
The chapter covers a survey of the institutional and legislative frameworks, case studies, global
and local views, theoretical, and conceptual works on renewal. frameworks. It provides a
thorough critique of the advantages and disadvantages of urban redevelopment as well as
potential strategies for effective urban renewal.
Chapter 3: Research techniques
It discusses the research's methodology, approach, and design. The procedures for sampling and
data gathering are also described. The work plan timetable, total study budget, and the technique
of data processing and presentation are all included in this part.
Fourth Chapter: Study Area
The location and setting of the region, MATHARE NORTH historical evolution, the legal and
institutional structure that governs renewal, physiographic qualities, and environmental
circumstances are the main topics of this chapter. It provides information on site inventory, the
neighborhood's current structural layout, and renewal.
Data analysis and discussion in Chapter 5
Graphs, pie charts, and tables are used to portray the data after it has been examined in
accordance with the study's goals. The SWOT analysis of the research field is included in the
discussion of the data.

Chapter 6: Concluding remarks and suggestions

Theoretical, methodological, practical, and overall study results are presented in this chapter's
concluding section. Additionally, it offers suggestions for planning ideas, an implementation
matrix, and topics for more investigation.
1.8 defination terms
Keywords: housing, housing affordability, informal housing, price-to-income ratio, land use
regulations, global monitoring.

2.0 LITERATURE REVIEW

2.1 Introduction
In this chapter, researcher will describe succinctly the study area, and into a number of literature
relating to my research topic. It includes but not limited to description of the study area, studies
on low income housing, low income neighborhoods, challenges facing low income households
and home-ownership.
Global perspective
housing affordability in cities the world over based on data from the Land and Housing Survey in
a Global Sample of Cities. We report on the composition of the housing sector across a 200-city
sample and develop two measures of housing affordability: occupant affordability – a sector-
wide measure of the relative housing affordability for the typical household that occupies a
specific dwelling, whether in the formal, informal, private or public housing sectors, and median
affordability – a measure of the ability of the median income household in a given city to acquire
a typical unit in the formal private housing sector. We also develop an OLS model that explains
the variation in housing affordability and shows the effects of population size, urban extent
density, land supply regulatory restrictions, and the presence of informal and public housing, on
the overall city housing affordability.
2.2Neighborhoods with low incomes
In metropolitan regions, households are geographically arranged according to their
socioeconomic class, race, and ethnicity. According to Alba and Logan's research,
socioeconomic status has an impact on the patterns and geometries of a residential neighborhood
in a city. It is clear that low-wage individuals live in impoverished areas because they are unable
to afford the housing units offered in middle- and high-income areas.
In their study on urban housing, Glaeser, Kahn, and Rappaport (2000) discovered that low-
income people prefer to live near to the city cores. Public services may be provided to this group
in a favorable manner, according to the argument that politics is to blame for this conduct.
According to Mayer and Jencks (1989), the main cause of the marginalization of low-income
families is thought to be the spatial segregation of homes with different socioeconomic statuses.
Poor people are not given access to high-quality public services and community resources. In
Nairobi, and more especially in the study area of MATHARE NORTH, the circumstance is
rather typical. Poor neighborhoods have been exacerbated by the government's over dependence
on local property taxes to pay for public services. Because they can afford them, wealthy areas
frequently receive high-quality public amenities. communities with due of their I comparatively
condemned with subpar public services. According to Turner and Wolman (2005), the existence
of political borders within a city is a sign that the region has been recognized as a distinct
residential spatial unit with unique characteristics. In this sense, spatial residential units have
characteristics that would draw a certain demographic to their local areas. For instance, in this
study's study region (MATHARE NORTH, in Nairobi), low income residents are concentrated in
large numbers, and the location is known to draw low income residents.
2.2 Nairobi's low-income residential area has a long history.
In Nairobi, urban segregation has existed and is a legacy of the colonial era. It is acknowledged
that before to 1963, Nairobi people lived under a colonial government policy of geographical
segregation that racially divided the country. The garden city concept was the urban planning
strategy used by the colonial authority. The approach made sure that the city's development
followed the trajectory of its economy. With this concept, African immigration to the city was
restricted to certain residential regions, preventing urban expansion. Those who worked in the
city's administrative, commercial, and industrial sections were given a lot to live on (Stren,
1978). This was accomplished by dividing residential settlements according to race, which led to
the settlement of Europeans on the northwestern and western parts, Asians on the southern parts,
and Africans being forced to live in the eastern parts, which were known for their high
population density and subpar public services (Salau, 1988).
Despite Kenya gaining independence from the colonial administration, Werlin (1974) claims that
Nairobi city still has unique and different residential areas for European, Asian, and African
inhabitants. Akumu and Olima (2007) made the additional observation that once Kenya achieved
independence, restrictions on locals migrating into the city were relaxed, which caused an inflow
of natives into the city. demand for few is high People were spatially sorted according to their
capacity to afford desired dwelling in a particular neighborhood as a result of the availability of
housing. Low-income individuals are largely clustered in the Eastern region (where Africans had
previously resided in the colonial rule). The MATHERE NORTH study area is a remarkable
low-income community in Nairobi, where over 95% of families are renters (Nairobi City
Council, 2012). Inadequate housing stock conditions, undesirable neighborhoods, and generally
poor public infrastructure are characteristics of the residential region.
CASE STUDY
TIANJIN

Tianjin is an eco-city that was developed to create an environment-friendly, energy-

efficient, and economically viable area for future generations. It is the second-
largest government-to government project between Singapore and China and was
piloted in 2007.
Design principles

➢ Ecological initiatives such as rehabilitation of 2.6 km wastewater pond

➢ Research in green development
➢ Development of green buildings
➢ Tapping renewable energy sources such as wind, solar and geothermal
➢ Promoting green transport
➢ Provision of common spaces for residents to promote cohesion
➢ Provision of public and social amenities within walking distance of
residential estates
➢ Energy-efficient technology
➢ Employment in culture creativity and Information communication
technology
➢ Energy conscience environmental conservation