Financing Constraints and Delivery Performance of Affordable Housing Projects in Kenya: Evidence from Public–Private Partnerships

Affordable housing remains a major development challenge in Kenya, with financing constraints affecting the delivery of projects implemented through public–private partnerships (PPPs). The study examined the effect of financing constraints on the delivery performance of affordable housing projects in Kenya, with particular focus on the moderating role of government and PPP support. The study was anchored on Transaction Cost Economics (TCE) and adopted a descriptive survey design. The population comprised 36 affordable housing projects in Nairobi City County, with project managers, financing officers and government/PPP officers providing 108 respondents. A census approach was used. Data were collected using structured questionnaires and analysed using SPSS Version 27 through descriptive statistics, multiple linear regression and moderated regression analysis. The findings established that access to construction finance and financing structure positively influenced project delivery performance, while financing cost and payment delays constrained delivery. Government and PPP support positively influenced project delivery and moderated the relationship between financing constraints and delivery performance. The study concludes that effective affordable housing delivery requires adequate and timely construction finance, manageable financing costs, timely payments, appropriate financing structures and effective government–private-sector collaboration. The study recommends strengthening affordable housing financing and PPP frameworks, improving access to affordable finance, streamlining payment and approval processes, and enhancing risk-sharing mechanisms. In practice, developers, financiers and government agencies should strengthen financial planning, cash-flow management and contractual coordination. The findings also support the applicability of TCE in explaining how financing and transaction-related conditions influence affordable housing project delivery.