Housing is a major investment requiring a substantial capital outlay. In the majority of housing projects, the developer has to recognize the time value concept of money. This raises the rate of interest to reflect the high risk of lending. Nairobi occupied  8% of Kenya’s total land but generates about 40% of the nation’s GDP and has a population of about 4 million people, 60% live in informal settlements or slums and  67% of Kenya’s total population lives in the country, improved primary health care, the infant mortality rate has dropped significantly, leading to an unprecedented population boom countrywide. The population growth at 2.9% is higher than the GDP growth at 1.1%. One-third of Kenyans (12 million– 9 million in rural and 3 million in urban areas) do not have decent and affordable housing. The major problems are found in Kenya like land tenure, financing, legal framework, materials, and appropriate technology to affordable housing in both rural and urban areas and they are generating informal settlements in towns and rural areas.