The lender’s managing director Sam Kimani said financing of hostels’ construction is a new area of interest.
Jamii Bora Bank has signed a Sh28 million loan with Shanzu Teachers Training College for the construction of new hostels, the second such deal for the lender this year.
Shanzu Teachers Training College has borrowed the money under a five-year mortgage that will enable it put up a 200-bed hostel for its business school located in Mombasa County. The school’s administration said the units will enable the college attract more students and raise income needed for further expansion.
“We have diversified the business school course to include self-sponsored P1 certificate course so as to encourage enrolment,” said James Ziro, the college principal, in a statement. Construction has already begun and is expected to be completed by June 2015.
This is the second student housing facility funded by Jamii Bora since June. The lender’s managing director Sam Kimani said financing of hostels’ construction is a new area of interest.
“We recently got into a partnership with Murang’a University College to finance development of a 5,000-capacity hostel project to the tune of Sh1 billion. We see the partnership with Shanzu as a mirror of our commitment to enable the institution to grow,” said Mr Kimani.
AfricanIcon, a South Africa-based company that focuses on developing student hostels, estimates this market is worth Sh307 billion. The company which has expanded to Kenya says there is demand for both construction of student housing and managing the facilities.
“Our hostel managers The Aengus Group were part of a consortium involved in the initial bid for the provision of 5,000 beds for Kenyatta University in Nairobi. Also The Moi University campus in Eldoret was visited to look at the provision of 15,000 beds for the campus,” said James Huff, the group head for Africa projects at AfricanIcon in an earlier interview.
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