Journal of South Architecture

A Measurement Model of Green Construction Finance Adoption in Kenya

ShadrackSimon (Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology, Kenya), DorcasMutheu Musingi (Department of Building and Civil Engineering, Technical University of Mombasa, Kenya), JamesOuma Okaka (Department of Construction Management, Jomo Kenyatta University of Agriculture and Technology, Kenya)

Abstract


This study investigates the determinants of Green Construction Finance (GCF) adoption within Kenya’ s construction sector, addressing the significant implementation gap between sustainable policy and actual practice. Utilizing a survey design, data were collected from 55 registered property developers and analyzed through Confirmatory Factor Analysis (CFA) and Partial Least Squares Structural Equation Modelling (PLSSEM). The results reveal an infant GCF ecosystem, with actual adoption at a mere 1.03% despite high conceptual willingness (98% ) among developers. The measurement model evaluates eight key determinants: Awareness, accessibility, institutional, financial, environmental, technical, risk, and socio-cultural factors. Critically, the analysis identifies a lack of discriminant validity among these constructs, suggesting they function as an interconnected “barrier bundle” rather than independent drivers. The low explanatory power of the model (R2 = 0.06) indicates that adoption is currently constrained by systemic market failures or factors beyond traditional linear determinants. The study concludes that piecemeal policy interventions are insufficient; instead, a holistic strategy is required to address the monolithic obstacles formed by regulatory, financial, and risk-related hurdles. Methodologically, it recommends that future research adopt higher order constructs to better capture the complex reality of sustainable finance in emerging economies.

Keywords


confirmatory factor analysis, determinants, green construction finance, Kenya

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References


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DOI: https://doi.org/10.33142/jsa.v3i1.18737

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