Abstract:
Despite significance of mortgage financing, previous research indicated that at best only 3% of households in
urban areas in Kenya were eligible for mortgage financing. The study sought to establish the role of socioeconomic
factors (income level, rental income and education level) on willingness or/and eligibility to mortgage
financing. The study adopted explanatory research design. Target population was obtained in the records of all
the 16 financial institutions licensed by Central Bank of Kenya offering mortgages in Uasin Gishu County.
Purposive and convenience sampling was used in picking the 16 Financial Institutions and 749 respondents
respectively. Structured questionnaires and a Double Hurdle Model were employed. Income level and rental
income positively and negatively influenced willingness to participate in mortgage financing respectively.
Income level and rental income significantly and positively influenced eligibility. The findings are important to
the Uasin Gishu Government, financial institutions and other stakeholders in making appropriate policies.
