ASSESSMENT OF TENANTS WILLLINGNESS TO PAY FOR IMPROVED ENVIRONMENTAL AMENITIES IN

ACASE STUDY OF KIRA MUNICIPALITY

The topic of study was assessment of tenants’ willingness to pay for improved environmental amenities in a case study of Kira municipality.

The objectives of study include; to identify the various environmental amenities that attracts tenants, to investigate the effects of demand shifters and tenants’ willingness to pay for improved living and to identify the social-economic attributes of tenants that influence willingness to pay for improved environmental amenities.

Namugongo division leaders should repair the drainage system in the area since this will attract more tenants and increase the sales for the new homes by the property managers and more to that the sanitation facilities also need to be rectified so as the environment is clean, The study further recommends that Namugongo division leaders should also ensure that there is affordable education systems in the division so as to attract tenants to stay in place and more to that there is also need to provide medical facilities to the people in the area and there is also need to construct affordable houses in Namugongo division to attract the Tenants in place by specifically provision of the affordable facilities that improve the quality of life of the tenants.

1.0 Introduction

The study is an assessment tenant’s willingness to pay for improved environmental amenities using the case of Kira municipality. This chapter presents the background of the study, statement of the problem, purpose of the study, objectives of the study, research questions, and scope of the study, significance of the study and conceptual framework.

Housing is one of the basic social conditions that defines the quality of life and welfare of the people and places. (Golubchikov & Badyina, 2012). Globally, housing is accepted as second most important human need after food and is considered as one of the most valuable economic asset of every nation (Adesoji , 2014).Housing being an essential ingredient that stimulate the growth of Gross Domestic Product (GDP) of any nation, encompasses various attributes which jointly function to determine the market value of the commodity.

1.1 Background to the study

According to Nwosu, (2015) Housing has been universally accepted for human habitation which is considered as the third next to food and clothing, it is more than just a home and it encompasses utilities, environmental amenities as well as services which enhance quality neighbourhood. Possibly, provision of basic amenities and human services for its increasing population is among the major challenges of successive government in Nigeria in making her habitable (Olujimi, 2010).

The property value could be attributed to property as a package of goods and services (Bello and Bello, 2008). Real estate entails more than just a dwelling as it includes social and neighbourhood features as well as environmental attributes. Therefore, property rental value or transaction price is a function of willingness to pay (WTP) for environmental, locational features and attribute of the property in its location or neighbourhood.

According to Bello and Bello (2008) it is difficult to determine environmental influences on value. Especially in Nigeria, considering the wide range externalities (positive and negative) that affects property market as a result of externalities. Water pollution, unpleasant condition of environmental sanitation, spread of squatter settlements, lack of accessibility and improper waste disposal arrangement or system, etc. are negative externalities while positive externalities entails good access road, air quality, electricity supply, security, landscaping amongst.

The influences of environment are therefore characterised and evidenced in pull and push effect of the neighbourhood on the prospective buyer or occupant of the property (Bello & Bello, 2008)A push effect like the air and water pollution may have effect on property value on one hand and occupant’s derivable satisfaction from the property occupied and environment on the other hand (Jackson, 2001) Hence, occupants’ satisfaction in respect of their shelter and environment, is social, behavioural, cultural and environmental features, not by engineering elements alone(Onibokun, 1974). Occupants may seek to approach or have properties which they hold positive attitudes in order to gain satisfaction. The efficiency and effectiveness of these depends on provision of infrastructural amenities or services (Nwosu, 2015:Babarinde, 1998). Availability of these amenities is pivotal to value of property (Hammer et al., 2000), which often leads to competition for such locations. This is because it enhances the value of property and vice versa.

According to Ferreira and Moro, (2010) occupants may seek to approach or have properties which they hold positive attitudes in order to gain satisfaction, increase by professionals. The methodology for estimating values, benefit cost of changes in quality. In developed countries, several studies have been done in the past on environmental amenities and property values (Des Rosiers et al., 2000; Diamond, 1980). Their findings cannot be directly applied in developing countries such as Nigeria, this is because of differential property market characteristics, culture difference, contextual setting among others.

Lorenz et al. (2008), Hoch and Waddell (1993) and Berry and Bednarz (1979) property and rental values has to do with the overlapping effect of neighbourhood and environmental attributes. Adequacy of these infrastructural amenities increases economic and social value to land and landed property thereby attracting would-be occupant or buyer and enhances their WTP in the concern land and landed property (Nwosu, 2015).

According to Maurizo et al., (2008) property and rental values has to do with the overlapping effect of neighbourhood and environmental attributes. Adequacy of these infrastructural amenities increases economic and social value to land and landed property thereby attracting would-be occupant or buyer and enhances their WTP in the concern land and landed property (Nwosu, 2015). In Uganda, the main issue is how real estate market will reflect these factors (environmental) as factors to determine WTP for improved environmental intangible amenities. Therefore, this study will examine tenant’s willingness to pay for improved environmental amenities in Nakawa Division, a case of Kira municipality.

1.2 Statement of the Problem

Laliberté (2008) indicates that house prices depend on both tangible and intangible or less tangible household characteristics. Among these characteristics are those of the environment and the average income of household were found to be of significant role in determining house prices or rent and on the same note (Zhou, Leng, Su, & Ren, 2019) asserts that having an improved environmental amenities like proper drainage system, improved sanitation system, clean water, clean air and generally low pollution has been scientifically proved as imperative for having a quality of life and reduced costs in Health related expenditure and this intern attracts Tenants to stay in a specific place. According to (World Economic Forum, 2019) it has been reported that there has been a mass exodus of people from rural areas to the cities in search of opportunities and this situation has intern increased a lot of pressure on the policy makers in providing the right amenities that can improve the quality of life and on the same view (Nwosu, 2015) asserts that Property values tend to be high where adequate and good environmental amenities are provided while property values are low in areas with poor environmental amenities which result in lower rental value.

It has been reported by the property managers of Namugongo division that there is a challenge in the tenants willingness to pay for a specific accommodation and this has to a large extend puzzled the policy makers as to what could be the reason for Tenants shunning some residential places in Namugongo division (Knight frank report, 2018).  Namugongo division currently is facing many challenges specifically of poor sanitation facilities, increased poor waste management facilities as observed, huge pillage of waste and increased over flow of water during rainy seasons all these has affected the residents of the area. It is therefore against this Background that this study intends to investigate into Assessment of tenants’ willingness to pay for improved environmental amenities in a case study of Namugongo Division, Kira municipality.

1.3 Main objective

The main objective of the study is to assess tenant’s willingness to pay for improved environmental amenities in Kira municipality in Wakiso district.

1.4 Specific Objectives

This study was guided by the following specific objectives.

1. To identify the various environmental amenities that attracts tenants.
2. To investigate other demand shifters that affect tenants’ willingness to pay.

• To investigate the influence of income on tenants willingness to pay for improved environmental amenities.

1.5 Research questions

The study was guided by the following research questions:

1. What are the various environmental amenities that attracts tenants?
2. What are the demand shifters that affect tenants’ willingness to pay?

• What is the influence of income on tenants’ willingness to pay for improved environmental amenities?

1.6 Scope of the Study

1.6.1 Content Scope

The content scope included; various environmental amenities that attracts tenants, other demand shifters that affect tenants’ willingness to pay and the influence of income on tenants’ willingness to pay for improved environmental amenities.

1.6.2 Geographical Scope

Kira Town, a municipality in the Wakiso district of the Central region of Uganda, is the country’s second-largest city by population. It is administered by the Kira Town Council, an urban local government. The national census in 2002 estimated Kira’s population to be 140,774 people, of whom 67,222 (47.8 percent) were males and 73,548 (52.2 percent) were females. The Uganda Bureau of Statistics estimated the mid-year 2010 population to be 172,300 and the mid-year 2011 population to be 179,800. The town planner, however, estimated the population to be 300,000 in 2010. In August 2014, the national population census put the population at 313,761.

Therefore carrying out this study will be of benefit to other scholars in finding out why Kira municipality is Highly populated.

1.6.3 Time scope

The research study focused on a period of five years from 2015 – 2019. This is because this is the period that the government through Kira municipality increased its budget for the development of most of the towns in the country.

1.7 Significance of the Study

The study will add to the general body of knowledge on tenant’s willingness to pay for improved environmental amenities of residential property in Kira municipality. The study will also create awareness to the would-be investors/ investors on opportunities available for investment and effect of lack of those environment amenities/ services on the general performance of residential properties in the rental markets

The study may be of importance to government in making housing policies and decree and/or amendment of planning and environmental laws as the study will reveal those environmental amenities that need to be improved.

This research also will be an available source to other researchers in the future for their research works such as projects, thesis, paper and term paper which can be reference to in their project work.

1.8 Justification of the study

The population of Namugongo has grown significantly and currently it is estimated at more than 69,000 residents (UBOS, 2014), from less than 30,000 resident’s a decade earlier this has therefore raised a number of speculation on to what could be the reason for the population increase in this area.

The has been many factors influencing the recent fluctuation in the tenants occupancy of the Buildings in Namugongo and therefore it is imperative for the study to be carried out to establish what could be the cause for the fluctuation in the number of occupants in Namugogongo division.

The dynamics in the demographics and the changing tenancy expectation of the environment is considered critical in the decision by the Tenants to rent a specific place and therefore this study will enable the future scholars to have a comprehensive information regarding the environmental amenities and tenancy occupancy in Namugongo.

The social economic status of the people in Namugogo has been changing overtime and therefore it is imperative to assess tenant’s willingness to pay for improved environmental amenities in Kira municipality in Wakiso district

1.9 Conceptual Framework

The conceptual framework below shows the relationships among variables. It indicates that the independent variable of this study which are improved environmental intangible amenities and the dependent variable which is tenants’ willingness to pay for improved environmental intangible amenities.

Independent Variable                                                                             Dependent variable

                                                            Moderating variable

Source: adopted and modified by the researcher

Figure 1: A Conceptual Framework Showing Relationship between environmental amenities and tenant’s willingness to pay.

From the conceptual framework above, the independent variables are measured in terms of environmental amenities, socio-economic characteristics and other demand shifters which tend to affect tenant’s willingness to pay.

2.0 Introduction

This chapter reviewed the existing literature on environmental amenities, socio-economic characteristics and other demand shifters which tend to tend to affect tenant’s willingness to pay.

2.1 Concept of Environmental Amenities

In environmental economics, an amenity is something considered to benefit a property and thereby increase its value (Carmichael, 2003). Carmichael classifies amenities in two; tangible and intangible amenity. Tangible amenities can include the number and nature of guest rooms and the provision of facilities such as elevators (lifts), Wi-Fi, restaurants, parks, communal areas, swimming pools, golf courses, health club facilities, party rooms, theatre or media rooms, bike paths or garages, while intangible amenities can include aspects such as well-integrated public transport, pleasant views, nearby activities and a low crime rate.

According to  (Barry and Martha, 2017) environmental amenities are “facilities available to households within and around their houses. They ·are· consumed directly or indirectly by households on daily basis”. The presence of these facilities adds to the comfort, joy and general welfare of the households. He argued further that among these facilities are “open spaces within housing units, habitable rooms, the size of the dwelling unit, the average size of rooms, the number of rooms with cross ventilation, number of toilets available to households, the distribution of bathrooms and kitchen among households”.

2.1.1 Various environmental amenities that attracts tenants

Environmental sanitation; The WHO Expert committee on environmental sanitation defined in 1950 environmental sanitation as “the control of all those factors in man’s physical environment, which exercise or may exercise a deleterious effect on his physical development, health and survival” (Dwivedi& Sharma, 2007). Environmental sanitation includes disposal and treatment of human excreta, solid waste and wastewater, control of disease vectors, and provision of washing facilities for personal and domestic hygiene. Sanitation is critical of the human stay. Place with proper water and sanitation always people to stay in them and therefore when there is poor sanitation such areas need Urgent action to improve water, sanitation and hygiene as well as health care waste management and environmental cleaning in health care facilities. The WHO/UNICEF Joint Monitoring Programme 2019 Global Baseline Report found that one in four health care facilities globally lacked basic water services, and one in eight had no sanitation service (Mmom et al.,2011).

Sanitation facilities; Rapid urbanization, complex land tenure laws, and frequent natural disasters (that are likely to be heighted by climate change) are clear regional trends that directly affect informal settlements. Each of these factors complicates and increases the expense of delivering basic public services. The area with proper sanitation facilities tends to attract a large population to settle into them.

Provision of clean water is imperative in the improvement of the general welfare of the people in the area. Population growth in cities is driving this demand, but economic growth will add to it. More industry requires more water, and prosperity raises expectations for the quality of water services. A projected increase in the size of the middle class might lead to a demand for better governance and better services including more water services (World Bank, 2012). And water use outside cities, for agriculture and power, will grow even faster, putting more pressure on dwindling water resources. When these pressures are combined, it is projected that over the next 25 years the demand for water in Africa will almost quadruple a much faster rate than any other region in the world (2030 Water Resources Group, 2009). In Uganda 8 million Ugandans lack access to safe water and 27 million do not have access to improved sanitation facilities. Further, due to disparities in water access in Uganda, urban people living in poverty pay as much as 22 percent of their income to access water from water vendors. Water shortage in Uganda has also forced many tenants to choose places of residence basing on water availability (Moe et al., 2006). Unsafe water, inadequate sanitation, and insufficient hygiene practices account for an estimated 9.1 percent of the global burden of disease and 6.3 percent of all deaths, according to the World Health Organization (WHO) (Prüss-Üstün et al.,2008).This situation has been made acute with rapid urbanization especially in developing countries in Africa, global statistics have highlighted the alarming rate of urbanization in developing countries where there the urban population is expected to double from 2000 to 2030(UNFPA,2007).

Presence of electricity supply in so crucial in determining the accommodation pattern of the people. Energy is one of the main inputs to the production process and therefore, its development is crucial for developing economies aiming to boost their economic growth and private investment. This sector’s activities relate to and strengthen the rest of the economy as energy forms an input for almost all production processes of goods and services. Electricity is one of the important components of the energy sector as it is the most versatile and easily controlled form of energy (IMF, 2017). It contributes to economic growth, creation of jobs and provision of light for people in their homes.  The Government of Uganda has for the past decade embarked on a Power sub-sector Reform Programme, which has resulted in the implementation of significant structural changes within the sector. The Reform Programme was aimed at transforming the electricity sector into a financially viable industry that would enable increased supply of adequate, reliable, and least-cost power to meet the country’s demand (Karekezi et al. 2004).

Presence of health facilities as one of the main components of a quality life it therefore determines the accommodation pattern of the people. Majority of the people especially low income the health care for the family takes a lot of their income therefore availability of health services is one of the fundamental key fundamental issues that they take into consideration before they decide a place for their accommodation. At the beginning of the 21st century, the government of Uganda began implementing a series of health care reforms that were aimed at improving the poor health indicators prevailing at the time. A sector wide approach was introduced in 2001 to consolidate health financing.  Another demand side reform introduced in the same year was the abolition of user fees at public health facilities, which triggered a surge in outpatient attendances across the country.  Accessibility and quality of health facilities; Poor health has stand out among other likely candidate for the disappointing growth performance of poor countries. Even though life expectancy increased in developing countries for the past 60 years, many people in low income countries encounter bad health conditions and this affects them economically also to a large extent . it is also difficult for people to stay in some places where the health facilities are in accessible  (The Economist Intelligent unit, 2011).

Pacione (1984) evaluated  the  relationship  between residential property value and residential environmental quality such as appearance of the residential area, air quality, area of trees and   greenery   nearby   while   Garrod   and Willis (1992a) examined the impact of landscape   characteristics   on   house   price such as views of woodland, urban area, and open water area. Boyle and Kiel (2001) studied the impact of land uses, air and water quality on residential property value. Jim and Chen (2006) investigated the environmental attributes related to house price such as view of green spaces and proximity to wood and water bodies (Jim and Chen, 2007; 2009).

Transportation facilities influences the settlement of people in an area. When the provision of adequate transport infrastructure is pivotal to achieving sustainable development and socio-economic growth in Africa, as it facilitates the movement of goods and services, stimulates economic activities, improves the continent’s competitiveness, and provides access to social services. The level of transport infrastructure provision in Africa is inadequate, both in terms of quantity and quality with variation from one country to another. This has negatively impacted the continent’s efforts to achieve the desired levels of socio-economic growth, and has adversely affected efforts to foster regional integration and ensure social inclusiveness. Nonetheless, the continent has witnessed progress in several areas of transport infrastructure development over the last decade including increased stock of paved road networks, stronger political will to foster regional integration, and growing investments in the air transport and railways sub-sectors. However, as progress is achieved, new development challenges also emerge in the sector. These include for example rapid urbanization, regional integration, social inclusiveness, fiscal space for sustainable funding, and resilience to climate change. Transportation facilities attracts people in a specific are, to this day it has been responsible for the attraction of people in most urban parts of Africa. This has further led to the development of these areas. Cities with large numbers of people and highly developed transportation facilities also attract large numbers of people.

Quality of hotel services available in the area. The demands of hotel guests and their expectations tend to change dynamically in the modern hotel industry. When asked to define service, most hotel guests (Mola, Jusoh, 2011) answer using commonplaces such as “getting what I want, when I want it, with a smile and respect”. Despite being too generalized, thus worded expectations still send a clear message – services imply, and customers demand, both tangible and intangible components. The survival of hotels in the existing competitive environment increasingly depends on the quality of service, with the only objective to achieve maximum possible satisfaction levels of hotel guests. Hotel guests‟ satisfaction becomes a key indicator of hotel business and an inevitable condition for achieving competitive advantage and high business performance. Identifying consumers‟ expectations and monitoring, measuring and managing these in terms of quality and satisfaction provides crucial information for business decision making.

An improved water source is an infrastructure improvement to a water source, a distribution system, or a delivery point, which by the nature of its design and construction is likely to protect the water source from external contamination, in particular from faecal matter (Hygiene Improvement Project, 2010). Due to the increasing awareness towards the effect of environmental view amenities on residential property value, factors such as lake, ocean, mountain or panoramic open spaces have also been examined. Several overseas studies have classified environmental amenity according to natural and built environment and discovered that people prefer view of natural environment to build environment (Scott and Canter, 1997).

The roads infrastructure of an area is also imperative in the enabling of people to stay in the area. This has been because it is through the roads that people are able to connect from one place to another hence leading to better and increased efficiency in business transaction by the people because of the quality infrastructure. Han, (2010) indicates that cities with good road network also have large numbers of people in them.

Waste disposal; major challenge in most urban areas is increasing solid waste generations which are the major cause of poor environmental amenities and improper disposal. To address the problem of poor environmental amenities, developed countries have achieved what remains only a dream to the developing countries in providing environmental amenities. For example, in 2010, the European Commission set up a management policy framework for its member countries aimed at promoting and implementing re-use, recovery, recycle and disposal of waste. The target was to ensure 50% re-use and recycling of household waste and 70% of demolition and non-hazardous waste by 2020 (Hall, 2010). Other strategies like waste-to-energy to generate electricity, gas for heating and biofuel out of the municipal solid waste have been adopted. For example, the UK generates 485kg/per capita per year of waste which is collected by the local authorities and more than 40% of it is recycled, a third of it incinerated and only 25% of it land filled (Malinauskaite et al., 2017). Estonia reduced   land filling of municipal solid waste to only 5% by 2015.

Drainage; Intensification of human activity causes increasing occurrence of polluting substances in water environment. This attracts attention of political organizations, environ-mentalists and the society. Many scientists and state organizations make every effort to centralize wastewater treatment for the biggest possible number of households. Nevertheless, centralized water supply and wastewater management system is not available for all inhabitants of many districts; some settlements cannot equip such sys-tem due to technical and material reasons. Therefore, the untreated household wastewater usually goes to the next water body (Kuhl et al. 2010).

2.2 Other demand shifters that affect tenants’ willingness to pay

Structural characteristics include all attributes relating to the physical structure of a house itself and its lot. Structural characteristics of a house and its land are the primary contributors to its economic value, because they provide the greatest utility to the owners (Bajic, 1984). It is expected that housing price increases with the number of bedrooms, the number of stories and the size of the lot, and decreases with the age of a house. Furthermore, structural attributes are thought to be more tangible and precisely evaluated than other housing characteristics ( Orford, 1999). For instance, the lot or dwelling area of a house is much easier to measure accurately than distance to transport routes, which means that structural characteristics are sure to be reflected in the housing price. With the selection and importance of structural characteristics, Grether and Mieszkowsk’s (1974) study of the physical attributes of a house found that the living and lot area of the house, the house age, the number of bathrooms, and the number of garages were the most critical factors in determining residential housing price.

locational or accessibility characteristics measure the distance or the travel time from a housing unit to locations of special concern, even though these attributes as locational externalities are unmarked and, thus, are paid for indirectly through housing purchase (Pinch, 1985; Oxford, 1999). For instance, a house’s property

Value can be positively affected by its location near a quality park equipped with good recreation facilities or negatively affected due to its location near a hazardous material facility. That is, accessibility increases property value by decreasing transportation costs which, in turn, bring benefit or utility to the household (Forrest, Glen, & Ward, 1996). Conversely, accessibility removes locational advantages when there is noise, air pollution, and congestion in nearby transport routes or higher crime rates in nearby parks and recreation areas (Sanchez, 1993).

Cost of Educational services; this variable is taken to capture the number of years the respondent spent informal school system. Education is expected to have positive and significant effect environmental quality Thus, the longer period the individual spent in formal school system, the more likely that he/she would be willing to pay more for environmental quality. The household respondents who had attained secondary, post-secondary and graduate level education were more willing to pay for improved solid waste secondary and graduate level education were more willing to pay for improved solid waste management (Okot, 2012). Niringiye (2010) hypothesized that the higher the level of education the more people would appreciate the consequences of mishandling of solid waste and the more value the individual would give in order to avoid the risk of being a victim of unclean environment. (Afroz et al. 2009) also reiterated the fact that education relates to a better understanding of the problem of solid waste and hence willing to ,pay for waste management willing to pay for waste management.(Addai and Danso-Abbeam, 2014).

Incomes of the neighbours; An income refers to the income of the head of the household from all sources. There is a general agreement in the environmental economics literature on the positive relationship between income and demand for improvement in environmental quality (Awunyo, et al., 2013). Therefore, we expect the income to affect the willingness to pay and its amount positively.  The finding in the study of urban household’s willingness to pay in improve solid waste disposal services in Kumas Ghana confirmed that general agreement in environmental economics literature on the positive relationship between income and demand for improvement in environmental quality.

Housing costs in an areas this has several attributes. According to Bourne (1981), housing has such attributes as environmental amenities, long life span, slowness in responding to changing demands, complexity and diversity of the housing stock, exogenous influences, policy overlay. Bogart (1998) distinguishes housing from other goods and services by five themes: heterogeneity (i.e., no two houses are same in terms of cost, space, location, and neighbourhood), immobility, durability, large expense in relation to income, and high adjustment costs (e.g., moving expenses and transportation cost). Even though other goods and services contain some of those characteristics, none has all of them (Bogart, 1998). Housing also confers status, social position, wealth, power, aspirations, and personal identity (Adams, 1984).

Price of goods and services; the theory of hedonic price functions a framework for analysis of differentiated goods like Hedonic pricing models housing units, whose individual features do not have observable market prices. A differentiated product can be represented as a vector of characteristics with the market price dependent upon the set of features. The market price of product of implicitly reveals the hedonic price function relating characteristics to prices. The tradition use of hedonic estimation in housing studies has been for the purpose of making inferences about non-observable value of different attribute like air quality, airport noise, commuter access (railway, subway or highway) and neighbourhood amenities (Rosen, 1974).

Houses in the urban areas are not only a consumption good but also an investment good, reflected by the rental values of houses (Umeh & Oladejo, 2015). The value of houses usually depends on locational, structural, neighborhood, community, environmental and land cover attributes (Babalola, Umar, & Sulaiman, 2013; Zoppi, Argiolas, & Lai, 2015). Structural and locational features explicitly determine housing rents (Irfan, 2007) Households primarily evaluate structural characteristics i.e. numbers of rooms and toilets; position of flat and location; and neighborhood features i.e. proximity to schools, public space, shops, workplaces, hospitals and police stations in order to settle rent in the housing market (Schläpfer, Waltert, Segura, & Kienast, 2015; Ooi et al., 2014; Ardeshiri, 2014).

2.3 Influence of income on tenants’ willingness to pay for improved environmental amenities

Uganda’s rental sector is large and growing; an estimated 71% of households in the capital city, Kampala, rent their dwellings (Uganda National Household Survey 2016/17), while over one fifth of all households nationally rent. The National Bureau of Statistics collects some useful data including data on the number of households who rent, the quality of accommodation they live in, and some details of rentals paid. This focus note explores this available rental data, and presents some new data that has been recently collected to understand additional aspects of the market.

According to Addai and Danso-Abbeam, (2014) the income of the individual has an influence on the way an individual chooses their place of residence. The income of the different genders influences the different sexes differently.  Different gender categories have completely unparrell interest when it comes to looking for a place to stay or rent. Most female gender always prefer to stay in an area where there is good sanitation and the neighbourhood is secure. Rental markets operate within an overall environment in which landlords and tenants supply and demand rental accommodation. Their practices, terms and conditions are shaped by the macro-economic environment and their capacity to engage is enabled by support organizations such as developers, financers, credit bureaus and rental managers.

According to  (Newell, Pizer, & Raimi, 2019) in a study in New York it was discovered that the female professionals with high incomes always rented in high end areas with high levels of security and in a related study in Lagos it was also discovered the female professionals always rented expensive houses which took almost 40% of their monthly salary.

Many authors have analyzed the effects of socioeconomic and cognitive variables on household’s willingness to pay for a service. Afroz, et al.  2009 in their analysis on the household’s willingness to pay for improved solid waste management in Daka city, Bangladesh maintained that age, household size and income maintain an increasing function with consumers’ willingness to pay for improved environmental quality. However, they found female to have positive influence on consumers willing to pay and males to have negative influence on consumers willing to pay Niringiye (2010)

On the level of income of the bueyrs determining their choice of stay it was further revealed by that Addai and Danso-Abbeam, (2014) , that in the South African city of Johannesburg it was revealed that young adult professional always preferred to stay in luxurious places with good security and it was also further revealed that the older people always preferred to stay in the outskirts of the city (Afroz, et al. 2009).

The income of tenant was also closely related to the age of the tenants Arku, Luginaah, & Mkandawire, (2012), indicates that different age groups always have different preferences for an area where they stay. Young professional prefer luxurious and well fenced building unlike the older people who prefer staying in areas far from the city.

Aggrey & Douglason (2010) and (Awunyo, et al. 2013),people of high income always prefer to stay in a place with good saniatation and therefore they prefer to stay in places with good hygiens and waste management system and on the same note Addai & Danso-Abbeam, (2014). Reveal that middle age group in the age range of 21 to 60 were found to be more willing to pay for improved environmental quality  than older ones (above 60) and younger ones (below 20). This was because old people (above 60) considered environmental improvement as government’s responsibility while young ones (below 20) just did not feel responsible for improved environmental quality  and were therefore less willing to pay for it. The middle age generation, with big family responsibilities, better understood the implications of poor environmental quality and were more familiar with cost sharing and were therefore more willing to pay for improved environmental services.

The wealthy marital partners of the household head is expected to influence the value the individual places on house of stay. Married people usually prefer to stay in in houses with big spaces while single people usually rent small spaces due to limited family size (Aggrey and Douglason, 2010).

People of high incomes but educated also have a preference of settlement which is different fropm that of people with high come but illiterate, the availability of educational services affects the choice of the tenants. Most of the tenants especially the married people with the family prefer to stay in an area were educational services can be accessed easily. The young people who are studying will also rent houses that are near the education facilities like universities, secondary schools and Tertiary institutions this therefore attracts the people to be in a specific place.

In many studies in Nigerian commercial capital of Lagos indicated that most of the people stayed in a specific area because of their income. The rich always constructed near one another while the low income earners also stayed in slummy areas. In the Nairobi poor neighbourhoods of Kibera , majority of the inhabitants are low income earners this indicates that the poor always leave in a specific area (Ibem, Ayo-Vaughan, Oluwunmi, & Alagbe, 2019).

3.0 Introduction

This chapter describes the procedures that the researcher will follow while conducting the study. It presents the research design, study area, sample size and sampling technique, data collection instruments, data matrix, data quality control, research procedure, ethical consideration, data processing and analysis.

3.1 Research Design

The study adopted a cross-sectional survey research design because of the nature of the variables that were at hand; to produce data required for quantitative and qualitative analysis and to allow simultaneous description of views, perceptions and opinions at any single point in time (White, 2000). In order to carry out a proper analysis both quantitative and qualitative methods were used in assessing tenant’s willingness to pay for improved environmental amenities in Kira municipality.

3.2 Study Area

The study was conducted in Namugongo-Kira municipality this areas was specifically chosen because. Namugongo is one of the most urbanized areas of people in Kira municipality and also the area has both upper income earners and low income earners therefore the area was not biased since all the classes of people are present in Namugongo and therefore the researcher was able to get a balanced information from all categories of people.

A map showing Namugongo Division Kira Municipality.

MAP OF KIRA MUNICIPALITY SHOWING NAMUGONGO DIVISION

3.3 Study Population.

Target population is the population to which the researcher will ultimately generalize the results. The accessible population for this study will be respondents from Kira municipality. Kira municipality is a large informal settlement. The study population will be 60 respondents which will consist of tenants and landlords within the Kira municipality

3.4 Sample size and sampling technique

3.4.1 Sample size

It is impossible to study the whole targeted population of the study and therefore the researcher took a sample of the population this is also further supported by Mugenda and Mugenda (2003) who notes that a research should choose a sample out of the whole targeted population. A sample is a subset of the population that comprises members selected from the population. Using Krejcie and Morgan’s (1970) table for sample size determination approach, a sample size of 381 respondents were selected from the total population of 69,637 of the residents (UBOs, 2014).

Table 1: Showing Population and Sample size of respondents

3.4.2 Sampling technique

The researcher used both simple random sampling and purposive sampling

Simple random sampling technique was used to determine the tenants from Kira municipality. This is because the technique provides an equal chance to any of the respondents to be selected and it is free from sampling bias.

Purposive Sampling was used to select key informants particularly landlords/ property owners. This method allowed the researcher to select respondents relevant to the problem under

Investigation in order to provide in depth information and knowledge of a phenomenon of interest.

3.5       Data sources

Data collected was both primary and secondary.

3.5.1 Primary Data

Primary data was collected from respondents through issue of questionnaires. Some of the respondents who were not able to interpret and follow the questions in the questionnaires were guided by the researcher and deliver the required information.

3.5.2    Secondary Data

This was mainly done through literature reviews, information obtained mainly from publications including Journals, Newspapers, Articles obtained from internet, text books and from the Researcher’s daily experiences.

3.6Data collection methods/ tools

3.6.1 Questionnaires

The researcher used questionnaires as data collection instrument. These questionnaires was administered by the researcher herself for purpose of explaining to the respondents the reason for the research and receive appropriate and reliable information from the respondents

3.6.2 Interview guide

The researcher interviewed the respondents which helped to collect data from respondents. Face to face discussions was conducted by researcher together with respondents in order to get first hand information necessary for the study.

3.6.3 Observation:

This approach involves the researcher making regular visits and surveys to the study area to analyse the existing situation. This approach was applied where necessary more especially where confirmation is required to supplement the data collected from various sources.

3.6 Data matrix table

3.7 Data quality control

The data collection tools were pre-tested on a smaller number of respondents from each category of the population to ensure that the questions are accurate.

3.8.1 Validity

Validity is defined as the extent to which results can be accurately interpreted and generalized to other populations (Oso & Onen, 2008). While Borg & Gall, 1989 as cited in Onyinkwa, (2013) validity is defined as the degree to which results obtained by the research instrument correctly represented to the phenomenon understudy and Mugenda & Mugenda, (1999) as the accuracy and meaningfulness of inferences which are based on the research results.

Amin, (2005) recommended minimum CVI of 0.7 to be used. Validity was tested using content validity index which involved judges scoring the relevancy of the questions in the instruments in relation to the study variables.

The formula for Content Validity Index was;

CVI =

Where CVI = content validity

n= number of items indicated relevant.

N = total no. of items in the instrument

In this study, validity was achieved by establishing content validity. The researcher achieved content validity by using the experts to assess the validity of the research instrument. The experts especially research supervisors and consultants from Kyambogo University were given data collection tools to assess whether the items in the instruments were valid in relation to research topic, objectives, and questions. From the instruments they declared some items valid and others invalid. Those declared invalid were dropped, others adjusted, while the valid ones were maintained.  Then content validity index (CVI) was computed by dividing the number of items declared valid by total number of items/questions in the data collection instrument.

Table 3.2 shows the content validity index (CVI) of the research instruments

Source: primary data

 Therefore, CVI =0.77(77%).

From table 3.2, CVI was 0.77(77%), and this was very good.  According to Waner (2005), as cited in Barifaijo, Basheka and Oonyu (2010), if the CVI is greater than 0.7, then the instrument is said to have a high content validity. The researcher analysed the data collected and where need arose, the instruments were re-adjusted and re-designed to improve reliability and validity. To improve face validity a pilot study was carried out at in Namugongo.

3.8.2 Reliability

According to Mugenda and Mugenda, (2003) reliability is the measure of the extent to which research instruments are able to provide the same results upon being tested repeatedly. Crobach’s coefficient alpha (a) as recommended by Amin, (2005, P.302) will be used to test the reliability of the research instrument. The instrument is deemed reliable if reliable of 0.7 and above is obtained and therefore, it was adopted for use in the data collection.

Formula for reliability is

=       ( )

Where  = alpha reliability co efficiency.

K=Number of items included in the questionnaire

= sum of variance of individual items

= variance of all items in the instrument.

To ensure credibility and trust worthiness of qualitative data the researcher will ensure that only the officials who are employees of Namugongo were interviewed.

The coefficient ranges between a=0.00 for no reliability, a =1.00 for perfect reliability. The closer alpha gets to 1.0 the better. If the study findings result to Cronbanch’s Alpha of 0.7 and above, this signified that research instrument is good enough for the study. According to Amin (2005), all the measurements in the instrument that show adequate levels of internal consistency of cronbach’s alpha of 0.77 and above are accepted as reliable.

Overall reliability= 4.621/6 =0.77 (77%)

The table 3.3 shows reliability of instruments on different variable, with an average Alpha of 0.77(77%), and this was good enough for the study according to Mugenda &Mugenda (1999) and Amin, (2003).

3.8 Research Procedure

The proposal of the study was developed under the guidance of the supervisor and it was presented for vetting in December, 2020. Once the proposal was approved, the researcher obtained an introductory letter from the Head of Department, Land and Architectural Studies, Faculty of Engineering, Kyambogo University introducing her to the LC 1 chairperson of Namugongo Division in Kira municipality Village. Data was collected by the researcher herself with the guide in the LC chairperson on the appointed dates.

3.9 Ethical considerations

All respondents were assured of confidentiality and the purpose of the research being academic were declared and explained in advance to all respondents.  An introduction letter was delivered to all respondents to ask for permission. Identity of respondents was not required on the questionnaire.  All respondents were skilfully and professionally approached.

3.10 Data Processing, analysis and Presentation

After data collection, data was organized for processing and later prepared for analysis which involved sorting, editing and coding before entering it into Statistical Package for Social Sciences (SPSS, Version 21.0). Thereafter, the data was presented through the generation of frequency tables.

3.11 Anticipated Limitations

1. There is likelihood of some targeted groups not providing the researcher with the required data due to the wish to enjoy high levels of confidentiality.
2. Some of the targeted respondents may not easily be accessed or may not willing to give of their time to sit through an interview due to their tight schedules of works.

• Lastly but not least time factor is going to be a challenge due to various schedules of work, as this research will be conducted alongside class-studies.

4.0 Introduction

This chapter presents data that was collected using questionnaires and interviews. In the same chapter, data is interpreted and analysed along four themes namely; to identify the various environmental amenities that attracts tenants, to investigate the effects of demand shifters and tenants willingness to pay for improved living and to identify the social-economic attributes of tenants that influence willingness to pay for.

4.1 Bio data of the respondents

This section introduces the findings of the study in relation to the bio data of the respondents.

4.1.1 Gender of the respondents

This section of the study was to find information on the gender of the respondents as indicated in the questionnaire. This was entered into the SPSS system and later used to generate the frequencies and percentages.

Table 4.2: Response rate

The study represents that the questionnaire issued was 52 (100%) while the questionnaire returned was 48 (92%). This response rate was good since according to Amin, (2010) any response rate above 70% is valid and should considered to carry out the study.

Table 4.3: Gender of respondents

Source: Primary Data

According to the study results as indicated in the table 4.1 above, majority 55% (26) of the respondents were male and the remaining 45% (21) were female.

4.1.2 Age bracket of the respondents

This section presents the age brackets of the respondents. This was done to gain a basis of whether the respondents were mature enough and their responses could be relied on for a study like this. This is presented in frequency form and percentage of the respondents.

Table 4.4: Age brackets of the respondents

Source: Primary Data

The study results indicate that majority, 46% (23) were in between 31-50 years of age. This therefore indicates that majority of the respondents were mature and therefore they could give reliable information regarding the subject matter. However, the responses of those below the above age were also taken seriously and considered in the overall presentation of research findings.

Table 4.5: Educational level of respondents

The study results indicates that majority 70% of the people in Namaugongo had Tertiary institutions qualifications, while only 4.17% had primary school level. This study therefore indicates that majority of the people in Namugongo are well educated.

4.1.3 Marital status of the respondents

The respondents’ marital status was investigated and the results presented in terms of percentages and frequencies.

Table 4.6: Marital status of the respondents

Source: primary data

According to the findings in the table 4.3 above, majority 58.1% (28%) of the respondents were married, 25.3% (12) were divorced while 16.6% (8) were married. This characteristic of the respondents enabled the research to ensure that the respondents had probably had an encounter with students either as professionals or parents in a given capacity.

Table 4.7: Findings on duration of stay at Namugongo

According to the study results it has been indicated that majority 66.7% of the respondents have stayed at Namugongo for 7years and above. This results also further indicates that majority of the respondents had stayed long enough in Namugongo and therefore they can answer the questions asked from an informed point of view.

Table 4.8: Number of people living in house hold

According to the results from the study it was evident that majority of people live in households of in between 5-10 people in the same house. This also implies that people in this area live in squeezed area with many people in a small house.

4.2 Various social amenities that attracts people in Namugongo

The respondents’ views concerning the To identify the various environmental amenities that needs to be improved in the study area Table 4.2. The variables were measured using 9 items scored on a five-point Likert scale of 1=strongly disagree, 2= Disagree, 3=Uncertain, 4=Agree, 5= Strongly agree. The mean value was measured using SPSS to indicate the Likert scale.

Table 4.9: Social amenities that attracts people in Namugongo

In the study in analysing the different environmental amenities it was observed that majority of the respondents asserted that the tenants attracted to stay in a specific place because of the drainage system. This results therefore shows the Drainage system is one of the most important key dimension of environmental amenity and further shows that in order for Namugongo Division to attract more tenants it must have good drainage system in place.

This view was also shared by one of the respondents during the interviews who indicated that;

“People do not like flooded areas and most people in Namugongo are attracted to stay in specific areas where there is good drainage system because they water a place were water and dirty materials does not enter their houses”.

Still on the same view one of the property managers also further indicated that;

“I find it difficult to convince people to stay in flood prone areas and people always shun those places therefore it is better for the government to completely work on the drainage systems of Namugongo to increase the value of our buildings so that tenants can pay us good money”.

The study findings also indicates that majority of the respondents stated to the fact that Tenants need clean drinking water before they stay in a place. This was indicated by the high mean value of 4.2 indicating that tenants are mainly attracted to stay in a place because of the clean drinking water available and when there is water available they may relocate their place of residence.

This study findings was also further reported by one of the property managers during the interview who stated that;

“Water is key in attracting tenants in staying a specific place each time you get a customer they first ask a question if you have a water point in a nearby place and if it clean for human drinking and when people discover that there is no water nearby they shun the building”.

Table results above shows that majority of the respondents strongly agreed that Proper waste disposal attracts tenants in an area. This study results further shows that Namugongo Division must have a proper waste disposal mechanism to ensure that it attracts tenants and it also further indicates that waste disposal is critical in enhancing the quality of life of the residents and therefore it attracts them in staying in the area.

In one of the interviews one of the respondents reported that;

“People want to stay in a clean environment and therefore in order to attract them the government needs to work on waste disposal mechanism of Namugongo since most tenants shun areas which have poor waste disposal methods”.

In the study findings majority of the respondents strongly agreed that Sanitation facilities is one of the critical reasons for attracting tenants to staying in an area, it also further indicates that sanitation is important to the tenants and if Namugongo is to attract more people then it must improve on the sanitation as this improves on the quality of life of the people in the area.

This was also indicated by one of the property managers during the interviews that;

“People want clean environment and they pay rend basing on the sanitation of the area when the place is dirty and untidy they do not stay in such a place as they find it unhealthy to stay in such a place”.

The study results from the table shows that majority of the respondents indicated that having clean drinking water is imperative in attracting tenants to stay in a specific place. This results therefore as one of the most important environmental amenity, people are attracted to stay in a place like Namugongo because of the clean drinking water.

In one of the interviews it was also further reported by one of the interviewees that;

“water is one of the most important aspects of life and tenants cannot rent a place with no clean drinking water”.

4.3 Demand shifters and tenants willingness to pay for improved living.

The respondents’ views concerning the to identify the Demand shifters and tenants willingness to pay for improved living as indicated in Table 4.3. The variables were measured using 5 items scored on a five-point Likert scale of 1=strongly disagree, 2= Disagree, 3=Uncertain, 4=Agree, 5= strongly agree. The mean value was measured using SPSS to indicate the Likert scale.

Table 4.10: Demand shifters that affect tenants’ willingness to pay

The findings in the study indicates that majority of the respondents stated that cost of the education is very critical in attracting the people to stay in a specific are. The table further shows that majority of the respondents strongly agreed that incomes of the neighbours are very instrumental in determining the location strategy of the people, this is evident by the fact that the mean value was 4.5.

This view was also shared by one of the councillors in the area who indicated that;

“People stay in areas were they can have schools for their children that is affordable and mostly kindergarten schools”.

According to the findings in the study it was also further revealed that majority of the respondents disagreed with the statement that People are attracted to stay in a place due to the incomes of the neighbours of the area. However this results contradicted with the interview from one of the local leaders who stated that;

“Rich people normally want to stay in a place where they find their fellow rich colleagues”.

The findings in the table also further shows that majority of the respondents indicates that most of the respondents indicated that price of goods has a big influence on the determining the decision of the people in staying in a specific place.

“It was also further reported by one of the chairperson L.C I that when the price of goods are a high in a specific are people tend to shun such areas because they feel that life is expensive in such area”.

Respondents also agreed that the cost of medical services also determines the decision of the people in staying in a given place if the medical services are expensive few people will stay in a specific place.

“Places where the cost of medical services are high people do not stay in such areas because they may fail to provide health care services to their children and therefore they shun such areas”.

4.4 Income on tenants’ willingness to pay for improved environmental amenities

The respondents’ views concerning the investigate the influence of income on tenants’ willingness to pay for improved environmental amenities

s Table 4.3. The variables were measured using 5 items scored on a five-point Likert scale of 1=strongly disagree, 2= Disagree, 3=Uncertain, 4=Agree, 5= Strongly agree. The mean value was measured using SPSS to indicate the Likert scale.

Table 4.11: income on tenants’ and willingness to pay for improved environmental amenities

Findings from the table also indicates that Rich people prefer to stay in environmentally hygienic places. This study results further shows that the richer someone is the more likely they prefer to stay in an environmentally hygienic place.

This was also further reported by one of the property managers who indicated that;

“Those with high income want to stay in a place which is clean and has the necessary amenities like good drainage system, clean and has water inside the building unlike their single male colleagues who want to stay in cheap places”.

Table results also further indicates that “The wealth of person and their ages brackets influences their choice of renting a specific place” influences their choice on the place where they stay young people have specific preferences which is different from the old people.

This view was also share by one of the property managers who stated that;

“Young people want to stay in a place which is good for small but clean and posh looking unlike old people who prefer to stay in quite large places”.

Table results also indicates that “Married people of high income have a different preference of choice of residence from other people” The wealthy married people have specific preferences which is different from the single people.

During the interview session one of the local leaders also stated that;

“Married rich people always want large houses which are located in a quiet and clean place unlike their single counter parts who value beauty of a place than the size of the building”.

Table results also indicates that majority of the respondents agreed that wealth and Educational level of the tenant is one of the big influences on their choice of stay. This therefore indicates people who are educated have specific preference on the choice of stay different from those who are uneducated.

In one of the interview sessions one of the respondents reported that;

“People who are highly educated have a specific preference for choice of residence than the uneducated people”.

The table results also further indicates that majority of the residents state that the “The salary that someone is paid affects their choice of residence” this results therefore further indicates that the more someone is paid the salary, the more they desire for good places of settlement. This also further shows that the salary is imperative for someone to stay in a specific place.

The respondents however disagreed that Length of Stay determines one’s stay in a specific place. This therefore indicates that the length at which someone has stayed in a specific place does not determine their choice of stay.

It was also reported during the interviews that;

“People’s choice of renting a place is dependent on the duration to which they are going to stay in a specific place when they are going to stay in a specific place for long their choice of place varies”.

The results also indicates that majority of the respondents indicated that the Family Size that someone has. It is very influential in determining the family size of the respondents.

“From the study results it was also further indicated that the size of the family affects the choice of the person on the residence”.

On the question of “People choose a place to stay depending on their income” the mean value was 4.01 indicating that majority of the respondents agreed with the statement. This was also further supported by the response from one of the respondents who indicated that;

“people of high income want to stay amongst themselves and they do not want to stay with poor people this therefore drives the rent of specific place especially if the place only has rich people”.

5.0 Introduction

This section presents discussion, conclusion and recommendations;

5.1 Discussion

This section of the study presents the discussion of the study in line with other scholars;

5.1.1 Various environmental amenities that attracts tenants

In analysing the different environmental amenities it was observed that majority of the respondents asserted that the tenants attracted to stay in a specific place because of the drainage system. This results therefore shows the Drainage system is one of the most important key dimension of environmental amenity and further shows that in order for Namugongo Division to attract more tenants it must have good drainage system in place and this findings was also further supported by  Kuhl et al. (2010)  Intensification of human activity causes increasing occurrence of polluting substances in water environment. This attracts attention of political organizations, environ-mentalists and the society. It is also indicated that poor drainage system leads to flooding something that affects the human settlement.

The study results also further indicated that Proper waste disposal attracts tenants in an area, this view was also further shared by Hall, (2010) who indicated that the major challenge in most urban areas is increasing solid waste generations which are the major cause of poor environmental amenities and improper disposal and this affects human settlement.

5.1.2 Effects of demand shifters on tenants’ willingness to pay for improved living

The study results also indicates that majority of the respondents stated that the cost of the education is very critical in attracting the people to stay in a specific are, the respondents indicate that people are attracted to stay in an area where the cost of education is low and therefore

Cost of Educational services; this variable is taken to capture the number of years the respondent spent informal school system. Education is expected to have positive and significant effect environmental quality Thus, the longer period the individual spent in formal school system, the more likely that he/she would be willing to pay more for environmental quality. The household respondents who had attained secondary, post-secondary and graduate level education were more willing to pay for improved solid waste secondary and graduate level education were more willing to pay for improved solid waste management (Okot, 2012).

In line to the study findings it has been reported that majority of the respondents strongly agreed that incomes of the neighbours are very instrumental in determining the location strategy of the people, this  view was also further in line with the findings of Umeh & Oladejo, (2015) who indicates that houses in the urban areas are not only a consumption good but also an investment good, reflected by the rental values of houses  and therefore people tend to rent in the area with like minded people.

The findings in the table also further shows that majority of the respondents indicates that most of the respondents indicated that price of goods has a big influence on the determining the decision of the people in staying in a specific place, this view was also shared by Zoppi, Argiolas, & Lai, 2015)  who indicates that the price of goods and services are one of the major determinants of the choice of the people in staying in a specific place and on the same note (Rosen, 1974) indicates that the theory of hedonic price functions a framework for analysis of differentiated goods like Hedonic pricing models housing units, whose individual features do not have observable market prices.

Respondents also agreed that the cost of medical services also determines the decision of the people in staying in a given place if the medical services are expensive few people will stay in a specific place. The cost of medical services has also been discovered as the main determinant of the choice of people in staying a in a specific place.

5.1.3 Income on tenants’ willingness to pay for improved environmental amenities

The study results indicates that the agreement by the majority of the respondents that rich people prefer to stay in environmentally hygienic places was also shared by   ( (Newell, Pizer, & Raimi, 2019) who indicates that people of High income prefer to stay in places with good hygiene and the same view was also further shared by Addai and Danso-Abbeam, (2014) who indicated that in New York it was discovered that the female professionals with high incomes rented places with high end area.

In the study findings it was also further revealed that the wealth and Age of the tenant influences their choice on the place where they stay young people have specific preferences which is different from the old people, this view was also further shared by Afroz, et al. (2009) who indicated that in a study in the South African city of Johannesburg it was revealed that young adult professional always preferred to stay in luxurious places with good security and it was also further revealed that the older people always preferred to stay in the outskirts of the city.

It was also discovered that the wealth and marital status of the respondents influences their choice of stay in a specific place. The married have specific preferences which is different from the single people, this view was also further shared by Aggrey and Douglason, (2010) who indicates that the wealthy married couples usually prefer to stay in in houses with big spaces while single people usually rent small spaces due to limited family size.

Table results also indicates that majority of the respondents agreed that Educational level of the tenant is one of the big influences on their choice of stay. This therefore indicates people who are educated have specific preference on the choice of stay different from those who are uneducated, this view was also indicated by Newell, Pizer, & Raimi, (2019) who indicates the number of years the household has been living in the area. This is expected to influence the willingness to pay in the positive direction, since the longer the year the household has been there, the more they would understand the problem of environment of that area, and the more they would be willing to pay for improvement in the environmental quality

The study results also further indicates that majority of the respondents indicated that the Family Size that someone has. It is very influential in determining the family size of the respondents, this view was also in line with Ooi, Le, & Lee, (2014) who indicates that this variable is expected to have influence positive or negative on the willingness to pay,  In most of the households, number of people living in the house is very key in determining the choice of the tenant in findings a place to rent.

5.3 Conclusion

The study made the following conclusions;

The environmental amenities in Namugongo are increasing challenging and some of the challenging ones include; the drainage system, water flow, waste disposal mechanism and Sanitation facilities.

The study results also further shows that some of critical demand shifters which influence the settlement of people include; the cost of the education, People are attracted to stay in a place due to the incomes of the neighbours of the area, most of the respondents indicated that price of goods has a big influence on the determining the decision of the people in staying in a specific place, the cost of medical services also determines the decision of the people in staying in a given place.

The study indicated that the influence of income on tenants’ willingness to pay for improved environmental amenities included; Rich people prefer to stay in environmentally hygienic places, the wealth of person and their ages brackets influences their choice of renting a specific place, Married people of high income have a different preference of choice of residence from other people, People’s preference of residence in a specific place depends on their wealth and educational level, the salary that someone is paid affects their choice of residence and People choose a place of stay basing on the size of their family.

5.3 Recommendations

The findings in the study made the following recommendations;

Namugongo division leaders should repair the drainage system in the area since this will attract more tenants and increase the sales for the new homes by the property managers and more to that the sanitation facilities also need to be rectified so as the environment is clean.

The study further recommends that Namugongo division leaders should also ensure that there is affordable education systems in the division so as to attract tenants to stay in place and more to that there is also need to provide medical facilities to the people in the area.

There is also need to construct affordable houses in Namugongo division to attract the Tenants in place by specifically provision of the affordable facilities that improve the quality of life of the tenants.

QUESTIONNAIRE

KYAMBOGO UNIVERSITY

BACHELOR OF SCIENCE IN LAND ECONOMICS

QUESTIONNAIRES TO RESIDENTS AND COMMUNITY LEADER

Dear respondent,

This is an academic research about assessment of tenant’s willingness to pay for improved environmental amenities in Mbuya, Nakawa Kampala Uganda. It is being carried out as a partial fulfillment for the requirements of the award of a Bachelor of Science in Land Economics Degree of Kyambogo University. As one of the respondents, your opinions are very important to this study. The information provided will only be used for academic purposes and will be treated with utmost confidentiality.

The researcher requests you to spend a few minutes of your time and answer the questions that are in this questionnaire. Your co-operation is highly appreciated.

Thank you very much for your co-operation and time in advance.

1. Job /Title /Rank…………………………………………………………

Gender :          Male    Female

Age of respondents

18-25   26-33   34-41

42-49   50-57   58-Above

Educational level

O-level

A-level

Diploma

Degree

2^nd degree

PhD

For how long have you stayed at Namugongo?

Less than 1 year          1-3years

4-6years           7years and Above

SECTION B

For each of the following statements, please tick where it is applicable the extent to which you agree using a likert scale.

On scale of 1-5, please tick the appropriate view of your opinion in regard to the aspects in the table below and make a brief statement where necessary.

Part 1: To identify the various environmental amenities that attract people here

Part 2: Effects of demand shifters on tenants’ willingness to pay for improved living in Mbuya Nakawa division.

Part 3: Social economic attributes of tenants that influence willingness to pay for the provision of improved environmental amenities in study

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QUESTIONNAIRE

I am Aikirize Desire Yunas Registration number 16/U/4153/BLE/PE, a 4^th year student of Kyambogo University pursuing a Bachelors degree of Science in Land Economics and I am carrying out a research to “Investigate the tenants willingness to pay for environmental amenities in kira municipality” A case study of Kira municipality. You are therefore identified as one of the respondents to provide appropriate information. The information given shall be purely used for academic purposes only and it will also be very confidential.

Tick the appropriate) 

Section A: Socio-economic characteristics.

1. Age of respondent
2. A) 18-30 B) 31-50 C) 51-59
3. D) 60 and above
4. Gender of respondent
5. A) Male B) Female
6. Education level of respondent.
7. A) Primary B) secondary C) Tertiary                  D) No formal
8. Marital status.
9. A) Single B) Married
10. Number of people living in the house .

A)1-4                     B)5-10                  C)More

6. Occupation of households.
7. A) Renting B B) Owner Occupation
8. Current job status

Student                employed              self-employed              unemployed                 retired

8. Income per month

• Low income earners B) middle income earners

1. C) High income earners

10. How long have you lived in this vicinity?

A)Less than 1 year                       B) 1 -5 years                  C)6-10 years

D)11-15years                  E)  16 and above

SECTION: B

On scale of 1-5,  please tick the appropriate view of your opinion in regard to the aspects in the table below and make a brief statement where necessary.

Part 1: To identify the various environmental amenities that attract people here

Part 2: Effects of demand shifters on tenants’ willingness to pay for improved living in Kira municipality.

Part 3: Social economic attributes of tenants that influence willingness to pay for the provision of improved environmental amenities in study

INTERVIEW GUIDE

I am Aikirize Desire Yunas Registration number 16/U/4153/BLE/PE, a 4^th year student of Kyambogo University pursuing a Bachelors degree of Science in Land Economics and I am carrying out a research to investigate the tenants willingness to pay for environmental amenities in Nakawa division A case study of Kira municipality. You are therefore identified as one of the respondents to provide appropriate information. The information given shall be purely used for academic purposes only and it will also be very confidential.

What’s your age?

What is your level of education?

How much is your monthly income?

How long have been staying in Kira municipality?

Are you satisfied with the environmental amenities in Kira municipality?

Which environmental amenities need to be improved in Kira municipality?

How do environmental amenities in Kira municipality affect rent?

How much will you be willing to pay for improved environmental amenities in .Kira municipality?

Identify the Challenges Faced in providing the environmental amenities in Kira municipality.

Appendix 2: Krejcie & Morgan Population Table (1970)

Note: “N”   is   Population   size,   and   “S”   is   Sample

APPENDIX :2 WORKPLAN