University of Nairobi Towers

Kenya’s Universities and Colleges have entered a period of aggressive expansion in their real estate assets as most of the major colleges and universities seek to expand their facilities to meet growing demand.

According to the latest Kenya PPP pipeline status report, most universities have initiated or proposed projects to build hostels for thousands of students. The student accommodation segment has been a hot market in recent years and players will want to consider the effects of the following proposed projects on their returns in those markets.

Moi University for instance, has initiated the development of student hostels with a total bed capacity of 15,000 on a Build-Operate-Transfer (BOT) PPP model which will include the development, operation and maintenance of other ancillary facilities. The institution has already shortlisted five contractors for the project.

University of Nairobi has proposed development of a student hostel complex to accommodate about 5,000 postgraduate, international students and visiting faculty. The project is to be developed on a 3.7 acres piece of University land along Harry Thuku road. The development will contain studio apartments, deluxe apartments, a parking lot for 1,000 vehicles, business centres, seminar rooms, a library, cafeterias and a restaurant, a swimming pool, an indoor games facility, and a health club.

The university also plans to construct hostels at Mamlaka Road to accommodate 10,000 undergraduate students. Preparations are underway to procure transaction advisors for the project.

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JKUAT, the Juja based university has developed plans to put up Juja Student Hostels and Lecturers Guest Houses. The hostels are expected to cater for 20,000 undergraduate students, 1,000 graduate students and 50 lecturers’ guest houses at the JKUAT Main Campus. This is in addition to other developments planned within the campus and for branches in other towns.

Kenyatta University is negotiating the financial close for development of a 10, 000 student hostels project to accommodate 9,350 undergraduate students and 650 postgraduates. The university has invited the private sector to design, finance, construct and operate the hostels for 20 years and transfer to the University at the end of contract period.

Maseno University has in the pipelines, the development of a ‘Student Village’ capable of accommodating 10,000 students in its main campus in addition to providing attendant commercial services such as shops, restaurants, eateries, document services, banks as well including retailors.

Kenya Technical Teachers College (KTTC) is ready to tender the development, operation and maintenance of a project with a total bed capacity of 4,530 on a Build-Operate-Transfer (BOT) PPP model.

Machakos University College has also proposed the construction of an interconnected twin tower building to each accommodate 5,000 students including facilities such as supermarkets, banks, and business centre while Njoro based Egerton University is ready to tender a student hostels project with a capacity for 3,750 projects on the BOT, PPP model.

Other universities and colleges with pipeline projects include Kenya School of Government (Embu), Pwani University, University of Eldoret, South Eastern Kenya University and Embu University College.

With the growing numbers of local and international students, tertiary institutions have found it inevitable to invest in facilities that provide greater capacity. Although the projects listed are solely those relating to PPP’s, tertiary institutions have been known to invest heavily in real estate.

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