Jamii Bora signs Sh1.8bn deal with varsity to finance private hostels plan

Jamii Bora Bank and Jaramogi Oginga Odinga University of Science and Technology have signed a Sh1.8 billion deal for the building of hostels in the third such deal by the bank.

The bank and the Siaya-based university signed a memorandum of understand (MoU) where the lender will finance private investors to put up hostels near the university.

The private-public partnership targets bankable investors with land close to the university with up to 90 per cent financing.

Interest will be charged at a nine per cent rate with a maximum payable period of 12 years.

“We will finance the development of 15 hostels around the university’s main campus in the first year and 11 hostels each year for the following four years around the main campus and other campuses,” said Jamii Bora chief executive Sam Kimani in a statement.

Jamii Bora is looking for saccos, university staff and investors from Kisumu, Bondo and Siaya to put up the hostels.

The university said the MoU is meant to increase student housing which has a direct relation to its planned expansion aiming to increase enrolment to 15,000 students by 2019 from the current 5,000.

“Close to 50 per cent of our students have had to seek accommodation outside of our campuses as a result of the shortage of accommodation facilities and unless we take immediate action to increase these facilities, this situation will stifle the university’s planned growth,” said vice chancellor Stephen Agong’.

The university will also act as an agent by collecting rent on behalf of landlords who put up the hostels and will provide a prototype designs to the investors.

Jamii Bora Bank signed a Sh28 million loan with Shanzu Teachers Training College and a Sh1 billion agreement with Murang’a County government to build hostels at Murang’a University College, earlier this year.