Kenyan property firm Acorn Group and London-based private equity fund Helios have signed a Sh7.4 billion deal to construct 3,800 hostels in Nairobi aimed at tackling students housing problem in the country.
The project will partly be funded by The world Bank private lending arm-International Finance Corporation(IFC).
IFC which plans to finance the construction of the hostels in Nairobi to a tune of Sh4 billion says the project is a step forward in reducing a deficit in students housing.
“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,” IFC says.
The first bunch of hostels in Nairobi will be built near Strathmore University, United States International University Africa (USIU-Africa) and Daystar University.
The rapid expansion of both public and private universities in Kenya has created acute demand for student accommodation and this has led to private developers stepping in either independently or through partnerships with tertiary institutions to try and offer solution.