3,800 hostels worth US$ 68m are set to be constructed in Nairobi, Kenya. The project will help bridge the current student housing gap in the country.
Acorn Group and UK- based private equity fund Helios are the companies behind the mega development. Moreover, International Finance Corporation (IFC) will partly fund the construction of the hostels.
This is a good initiative that will aid in the reduction of deficit in affordable student accommodation; this is according to IFC which plans to fund the project with a whopping US$ 40m.
Also Read; Kenyan University to construct US$ 48m hostel
“The step will help reduce the deficit in affordable accommodation for those in tertiary institutions and those newly out of college but cannot afford to buy property for themselves”, IFC said.
The first beneficiaries of the hostels will be USIU-Africa, Strathmore and Daystar universities. These are the universities where the investors have already acquired acres of land for commencement.
Hostels in Kenya
This news comes at a time when Kenyatta University confirmed the construction of hostels costing US$ 48m. They are set to begin mid this year and be developed by a New York-based private equity firm Africa Integras through a public private partnership.
Additionally, local universities are receiving double intakes which have increased the total number of students from approximately 300,000 in 2013 to 600,000 this year.
About the Firms
Helios Investment Partners is one of the largest Africa investment firms. On the other hand, The International Finance Corporation is World Bank’s private lending arm.
It has a record that spans creating start-ups to providing established companies with growth capital and expertise.
In 2015, Acorn Holdings Limited together with leading Africa focused private equity firm – Helios refocused their strategy to purely developing and managing purpose built rental accommodation for young people in Nairobi.
