ISSN 2349-7807 International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) Vol. 6, Issue 3, pp: (141-155), Month: July - September 2019, Available at: www.paperpublications.org An Empirical Examination of the Effect of Mortgage Financing on Performance of Real Estate Sector in Kisumu City, Kenya 1DANIEL IPAA ETYANG, 2OMBABA K. B. MWENGEI 1MSC FINANCE STUDENT, JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY 2LECTURER, JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY Responding
[email protected] Abstract: Housing forms one of the sustainable development goals. In Kenya, it is part of the big four agenda of the Kenyan government. Real estate performance therefore provides an opportunity to achieve these goals. Real estate sector performance financially is important and critical to the overall thriving of the firms in the sector. Failure to meet the required level of performance by real estate firms in terms of revenue earned, profitability and returns on investment may jeopardize the running of activities. This may lead to collapse or closure of real estate firms. The purpose of the study was to establish the effect of financing options on performance of real estate sector in Kisumu City, Kenya. The study will look at the effect of mortgage financing, loan financing and savings financing on performance of real estate sector. The study was anchored on structural form theory, lien theory and liquidity preference theory. This study adopted an exploratory research design. The target population was 23 licensed mortgage and financial institutions, 25 registered real estate firms, one National Construction Authority (NCA) operating in Kisumu City.