A section of University of Nairobi Hostels. Photo/capitalfm
Accommodation deficit for university students in Nairobi is set to come to an end after real estate firm Acorn Group and London-based private equity fund Helios announced plans to build 3,800 University hostel units in Nairobi through a mega project estimated to cost about Sh7.4 billion.
The joint venture plans to set up the first cluster of units near Strathmore University, United States International University Africa (USIU-Africa) and Daystar University.
Reports indicate the project will be sponsored by International Finance Corporation (IFC), which plans to lend the two firms $40 million to undertake the initiative.
A statement from IFC said: “The student and young professionals housing will be a big step towards reducing the deficit in affordable accommodation for those in tertiary institutions and those newly out of college but cannot afford to buy properties of their own.”
Kenya has experienced a rather rapid expansion of both public and private universities in recent years.
This reality has in turn created a huge demand for student accommodation, prompting private developers to step in either independently or through partnerships with respective tertiary institutions to contain the demand.