Improving housing conditions: labelled loans in Kenya and Uganda

ABSTRACT We evaluate a non-governmental housing microfinance intervention that attempts to improve housing conditions for low-income populations by simultaneously offering them a labelled loan and non-financial technical support. Using household survey data from Kenya and Uganda, we first show evidence for the successful targeting of our labelled loans because 95% of clients used the loan for the intended housing improvement. Second, our results suggest that access to small, short-term loans enables households to invest in housing upgrades that can significantly improve both the characteristics of their dwelling and their satisfaction with their dwelling.