ALTERNATIVE METHODS OF HOME FINANCING: A CASE STUDY ON THE FACTORS INFLUENCING THE ADOPTION OF ISLAMIC MORTGAGES IN KENYA

ABSTRACT

The aim of the study was to investigate the factors influencing the development of Islamic mortgages in Kenya. The research design of the study is a case study approach focusing on two Islamic banks in Kenya; First Community Bank and Gulf African Bank. The population of the study consisted of 29 customers, who were the holders of accounts in the respective banks and 8 managers. Data was collected by the use of questionnaires administered by the researcher. Data analysis method used is based on the quantitative approach using descriptive statistics. Tabulations, graphs and pie charts were used to analyse the findings of the study. The study revealed that Islamic mortgage is mainly driven by religious compliance and social influence. A further study in the same area is recommended in future with increased sample size and expanded period of study as more data on Islamic Banking becomes available.