BEYOND PROCEDURAL COMPLIANCE: STAKEHOLDER ENGAGEMENT AS A DETERMINANT OF PUBLIC-PRIVATE PARTNERSHIP PERFORMANCE IN AFFORDABLE HOUSING DELIVERY IN KENYA

Abstract

Public-Private partnerships (PPPs) have emerged as Kenya’s primary institutional strategy for addressing a chronic housing deficit  exceeding 200,000 units annually, yet the programme has consistently undelivered, with fewer than 16% of annual housing units targets met as of 2023/24  financial year. The study aimed at examining the impact of stakeholder engagement on the performance of PPP, in the implementation and delivery of affordable housing projects in Kenya. A mixed –method research h   design was adopted, integrating quantitative  survey data from 318 professionals across 13 stakeholders  strata  in the Nairobi Metropolitan region, drawn from a target population 318, calculated using Yamane’s (1967) formula at a 95% confidence interval, yielding an 82.6% response rate, with qualitative evidence from 20 purposively selected Key Informant Interviews. Quantitative analysis employed descriptive statistics, Chi-Square tests of association with Cramer’s V effect size, bivariate logistic regression, and multiple logistic regression using SPSS version 25. Qualitative data was analyzed through thematic content analysis following Braun and Clarke (2006) framework. The study was grounded theoretically in Freeman’s (1984) stakeholder theory, Arnstein’s (1969) ladder of citizen participation, and principal-agent theory. A statistically significant and practically strong association was established between stakeholder engagement and PPP housing performance (χ²(51) = 837.794, p < 0.001, Cramér's V = 0.937). Multiple logistic regression identified early stakeholder identification (AOR=12.531, p=0.003), communication transparency (AOR=12.118, p=0.017), and role clarity (AOR=3.624, p<0.001) as the most robust independent predictors of performance. Over 60% of respondents assessed   stakeholder engagement as inadequate across all six measured dimensions. Qualitative evidence revealed a structurally reproduced governance gap between procedural and substantive participation, with publication-based consultation mechanisms systematically excluding digitally marginalized populations, and a Housing Levy governance paradox in which the public’s compulsory financial participation in programme financing is unmatched by commensurate governed voice in project planning and design. This study concludes that stakeholder engagement constitute a foundational determinant of PPP housing performance in Kenya, and the programme’s persistent   underdelivery is substantially attributable to a stakeholder governance architecture that is institutionally tokenistic, structurally exclusionary, and misaligned with the constitutional and developmental imperatives of substantive public participation. Meaningful improvement in PPP housing performance requires the institutionalization of early, inclusive, and binding stakeholder engagement as a precondition for project approval, supported by communication strategies that transcend the digital divide, governance reforms that match financial participation with participatory rights, and accountability mechanisms that ensure community feedback is systematically incorporated into binding project decisions.