Optimizing Mortgage-Financed Construction: An Empirical Assessment of Critical Success Factors in Kenya

Abstract

Critical Success Factors (CSFs) are widely recognized as key determinants of construction project success, yet their specific influence on mortgage-financed construction projects (MFCPs) in Kenya remains underexplored. This study empirically analyzed the relationship between CSFs and project performance, focusing on five performance indicators—budget adherence, schedule adherence, quality, safety, and cash flow. Using a survey research design, data were collected from 1,063 MFCPs initiated during the 2021/2022 financial year. Respondents included site agents and clerks of works, with data analyzed through descriptive statistics, correlation, and multiple regression. The findings reveal that quality performance is the most sensitive to CSFs, showing strong positive correlations with project-related, consultant-related, contractor-related, and resource-related factors. Budget adherence also demonstrated moderate positive associations with project management, contract management, financial health, and contractor competence, underscoring the importance of internal governance systems in cost control. Schedule adherence exhibited weaker but significant correlations with resource, financial, contract, and client-related factors, reflecting the influence of external bottlenecks such as permitting and regulatory delays. Safety performance, however, showed no significant correlation with CSFs, highlighting the need for specialized safety management practices distinct from general success drivers. Regression analysis confirmed that CSFs collectively explain approximately 38% of the variance in project performance, indicating that while they are critical, other external and project-specific factors also play substantial roles. The study concludes that embedding CSFs into project governance frameworks is essential for improving quality and cost outcomes, while schedule and safety require complementary strategies. Recommendations emphasize strengthening contractor capacity, resource adequacy, and dedicated safety oversight to enhance MFCP performance in Kenya.