Determinants of the Performance of Mortgage-Financed Construction Projects in Kenya: A Literature Review Perspective

Abstract

Mortgage-financed construction projects in Kenya have been associated with dismal performance. These projects have been riddled with cost and schedule overruns, among other challenges. This paper aimed to establish the factors determining the performance of mortgage-financed construction projects. A desk review approach was adopted whereby previous research published between the years 2000 and 2022 on the subject area was considered in the analysis. In total, 63 studies were reviewed. However, data was collected from a total of 17 studies. Some of the reasons why 46 studies were not considered were due to duplication of findings, lack of a clear method of data collection and analysis, and limited geographical scope, among other reasons. Based on the reviewed studies, the research established a total of 61 individual factors after excluding all repetitions. These were categorized into ten groups namely;  procurement Related Factors (X1), Project-Related Factors (X2), Client-Related Factors (X3), Consultant-Related Factors (X4), Project Management-Related Factors (X5), Contractor-Related Factors (X6), ResourceRelated Factors (X7), Financial-Related Factors (X8), Contract Management-Related Factors (X9), and External Factors (X10). Further, the study determined the presence of a moderating variable that affects the effect of these critical success factors on the performance of mortgage-financed construction projects. This moderating variable is Mortgage Financing (Z). The study concluded that the investigated factors were critical for the success of mortgage-financed construction projects and recommended an empirical study to be conducted in Kenya to evaluate the strength and effect of these determinants on the performance of mortgage-financed construction projects.