Kenya: Student Housing concept exceed expectations

According to the ministry of education, the available student housing in Kenya stands at an estimated 300,000 units against a university enrolment of more than 500,000 as at 2019, locking nearly half of the students' population out of campus-based accommodation.

By Steve UMIDHA On Feb 28, 2022

By Phyllis Muchoki in Toronto

The market for student accommodation is entering a boom period amid rising demand that could see rental prices for such housing models sprout faster than was earlier anticipated, new trends now show.

Kenya is seen as one of those emerging markets for student housing in the region, with the concept fast gaining traction with private sector developers, investors, and operators watching closely.

With the current available stock at 301,060, the student housing gap has attracted private sector participation to increase supply in order to cater to student preferences. Some of the factors that have driven demand for student housing in the country.

Figures by the Kenya National Bureau of Statics (KNBS) for the 2021 Economic Survey show that the student population in universities and vocational centres stood at 997,904 in FY’2020/21 from 664,000 in FY’2014/15.

This represented a 5-yr CAGR of 8.5 percent, further expanding the student housing deficit by approximately 60,000 units.

The numbers are set to increase as the university/college age demographic continues to grow. According to the 2019 population and housing census data, the number of individuals between 18-24 year who mostly represents university and vocational entry students was 6.4 Million, representing 13.4 percent of the total Kenyan population of 47.6 Million.

Besides traditional forms of rented accommodation such as hostels, paying guests and shared apartments, student living – a relatively new housing segment is fast gaining ground among start-ups who want to expand the number of beds across the country.

Best known as Student Housing, or purpose-built student accommodation, the concept refers to housing that has been designed specifically to meet the demands and requirements of today’s student.

The concept has gained much traction globally and has become a mainstream investment class asset getting more attention from institutional investors, especially in developed European markets and the United States.