Officials from the National Treasury’s Public Private Partnership (PPP) Unit will on Tuesday hold an investor conference in Nairobi to sell the idea to potential investors who the State hopes to partner with to build 30,000-bed spaces in public universities that are struggling with a shortage of student accommodation.
“The conference is aimed at helping secure bids for the Sh20 billion development of additional hostels across three universities,” said the Treasury in a press statement on Monday, adding that the government intends to add 30,000 bed spaces through PPPs in three public universities.
According to the Treasury Cabinet secretary Henry Rotich, the institutions that will benefit from the project include Moi University, South Eastern Kenya University (Seku), and Embu University College.
The project will be undertaken on a build-operate-transfer system in which universities will provide land for construction while the developers will build the hostels, operate them for about 20 years to recoup their investments before handing them over to the universities.
The PPP model, which is becoming a popular trend globally, is viewed as a promising avenue for private investors to put money into the public education sector to supplementing State funding.
A fast rising population of university students in Kenya is creating enormous opportunity for developers to set up accommodation facilities across the country.
It is estimated that local universities have a combined 280,000 bed spaces against a student population of 769,500, which accounts for 40 per cent the country’s total housing shortage.
The shortfall has caught the eye of the real estate sector as a powerful alternative asset class giving rise to an increasing investor interest for the market segment.
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