Effect of Economic Factors on Mortgage Uptake in Housing Finance Corporation in Eldoret Town, Kenya

The purpose of the study was to investigate the effect of economic factors on mortgage uptake in Eldoret Kenya. Though the Kenya government through the constitution has recognized the right to accessible and adequate housing with reasonable sanitation, availability of housing still remains a major challenge in urban areas not excluding Eldoret town. The study sought to investigate the effect of economic factors on mortgage uptake in Kenya. The study adopted ex-post facto research design. This study targeted 130 staff members in selected departments in Housing finance Corporation and customers to housing finance in Eldoret branch. Simple random sampling technique was adopted to select a sample of 98 respondents was chosen for the study. Questionnaires were adopted as data collection instrument. The study established that there is a negative and significant relationship between economic factors and mortgage uptake in Housing Finance Corporation (p=0.024<0.05 β=-0.497). The study concluded that economic factors had an effect on mortgage uptake in Housing Finance Corporation in Eldoret. The study recommended that the government should enact legislation which regulates the inflation and interest rates in the banking industry so as to protect the interests of both consumers and lenders in mortgage financing.