Housing Micro-Finance and Low-income Housing Delivery in Kumasi: An Appraisal of Savings and Credit Cooperative Unions

Document Type : research paper


1 Department of Land Economy, Kwame Nkrumah University of Science and Technology, Ghana

2 Department of Land Economy, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana


With issues of high interest rates, huge collateral demand, and high initial deposits among others, the mortgage industry remains unattractive and expensive especially to low-middle income earners. As the housing deficit continue to soars, these persons continue to build their homes incrementally. This has been described as an unsustainable means of home financing. As a result, this study in employing both qualitative and quantitative research paradigms within a case study approach, investigated the role of Savings and Credit Cooperative Unions (SCCUs) in housing delivery in the Kumasi Metropolis. Purposive sampling was used to select Three Savings and Credit Cooperative Unions (SCCUs). One hundred and twenty members of these cooperative unions were conveniently sampled and interviewed using a structured questionnaire. The study revealed that Savings and Credit Cooperative Unions (SCCUs) provide housing loans to co-operators. It was established that cooperative unions with strong membership are involved in direct housing construction and assist members in the acquisition of plots of lands. Furthermore, it was revealed that land tenure insecurity, high illiteracy rate, default in loan repayment, lack of government support and inadequate funds were the factors that militate against the role of SCCUs in housing delivery within the Metropolis. Despite these challenges, it was observed that Savings and Credit Cooperative Societies or Unions remain a viable financing medium for low-middle income earners in Ghana. The study therefore concluded by recommending among others the establishment of purposive community cooperative unions and self-supportive housing systems in the country.


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