AN INVESTIGATION ON PENSION SCHEME’S POTENTIAL TO FINANCE HOUSING DEVELOPMENT IN KENYA.CASE STUDY OF THE NATIONAL SOCIAL SECURITY PENSION SCHEME AND KENYA COMMERCIAL BANK STAFF PENSION SCHEME

ABSTRACT
Pension funds control relatively large amounts of capital and generally represent the largest institutional investors in many nations. Financing real estate on the other hand required a huge capital outlay. This study examined the viability of pension funds as an investment option in real estate development. It is empirical in approach and adopted a case study approach. A convenient random sampling technique was used to gather data from a sample of 12 respondents comprising of 4 pension administrators and 8 Real Estate Developers. A structured questionnaire was used as the instrument for data collection, interviews and simple descriptive methods were used for presentation and analysis of the study’s results. It emerged from the study that if the pension funds are well managed they are capable of sustainable financing of real estate developments in Kenya.
It is therefore recommended amongst others that the Kenya government should amend or review its policy to increase the percentage of the pension funds for real estate development. In addition the government should empower pension Fund Managers to provide credit to developers and real estate investors who meet and comply with the conditions in place. Real estate brokers and experts should also be drafted into the pension scheme to give professional advice on the viability and feasibility of any proposed real estate development