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Published Aug 6, 2025
08-minute read

Why Student Housing in Kenya is a Billion-Dollar Opportunity in the Making 

In this rapidly evolving environment, ASA I-REIT stands out as the premier large-scale institutional provider of purpose-built student accommodation in Kenya. Its early-mover advantage and growing portfolio give it a distinct edge over potential competitors entering the space. 
Backed by institutional credibility, ASA I-REIT is well-positioned to serve the dual goal of closing the student housing gap and delivering sustainable returns to investors. 

Kenya’s PBSA Market in 2025: A Prime Investment Opportunity in Student Housing 

Kenya's purpose-built student accommodation (PBSA) sector is emerging as one of the most promising real estate investment frontiers in East Africa. With a widening gap between student housing supply and demand — compounded by surging university enrolments and increased government support — the PBSA market presents a rare blend of social impact and strong return potential. 

Why Kenya’s PBSA Sector Deserves Investor Attention 

1. Rising Student Enrolment Is Driving Demand 

Kenya’s education system has experienced transformative growth in recent years. The 2024 KCSE (Kenya Certificate of Secondary Education) results saw approximately 246,000 students achieve a C+ grade or higher — the minimum threshold for university entry. This was a significant jump from 201,000 students in 2023, reflecting both improved academic performance and heightened demand for tertiary education. 

As a result: 

  • University enrolment rose by 4.7% in 2024 
  • TVET (Technical and Vocational Education and Training) enrolment surged by 11% 
  • The number of accredited universities increased from 65 in 2021 to 79 by 2025 

This growth directly amplifies the need for affordable and quality student accommodation — a need that current infrastructure struggles to meet. 

2. Robust Government Funding Enhances Affordability and Access 

In tandem with rising enrolment, the Kenyan government has expanded its higher education funding initiatives: 

  • HELB loan disbursements grew by 59.5%, reaching KES 46.9 billion in 2024. 
  • Support under the new funding model increased from KES 17.9 billion to KES 20.9 billion. 

Further investments include: 

  • Two new public university colleges 
  • Additional Kenya Medical Training College (KMTC) campuses 
  • Expanded teacher training facilities across the country 

This increasing public investment significantly boosts students' financial ability to afford quality housing — a critical factor that supports the viability of the PBSA market. 

3. Student Housing Capacity Lags Behind Demand 

As of 2024, Kenya’s total national student housing stock is estimated at just 280,000 beds, falling well short of the actual need. Despite greater private sector participation, the deficit remains immense. 

Here’s a snapshot of the current supply landscape: 

  • Acorn REITs: 10,500 operational beds and 9,500 more in the pipeline 
  • Homescope Hostels: <1,000 beds 
  • Student Factory Africa: Recently broke ground on 4,500 additional beds 
  • Parallel Four Hostels: Still in early stages of market penetration 

Compared to the growing student population, these numbers underscore the urgent need for large-scale, professionally managed, and affordable PBSA developments. 

ASA I-REIT: Leading the Charge in Institutional PBSA Development 

In this rapidly evolving environment, ASA I-REIT stands out as the premier large-scale institutional provider of purpose-built student accommodation in Kenya. Its early-mover advantage and growing portfolio give it a distinct edge over potential competitors entering the space. 

Backed by institutional credibility, ASA I-REIT is well-positioned to serve the dual goal of closing the student housing gap and delivering sustainable returns to investors. 

The Bottom Line: A Golden Window for PBSA Investment in Kenya 

The convergence of three powerful forces — soaring student enrolments, improved government support, and a chronic supply shortage — has created a fertile ground for real estate investors. 

With the PBSA sector still in its infancy relative to market demand, investors have a unique opportunity to participate early in a high-growth, impact-driven asset class. 

Also Read: Is Investing in REITs In Kenya Profitable?

Are you ready to explore institutional-grade investment opportunities in Kenya’s student housing sector?  

Join Vuka and Start Investing in Kenya’s Student Housing Boom 

Vuka has made it easy for retail investors to access high-quality real estate opportunities like student accommodation REITs. Whether you're just getting started or looking to diversify your portfolio, you can now invest in Kenya’s PBSA market with confidence, transparency, and ease. 

👉 Sign up now and take your first step toward smarter real estate investing. Or click here to speak to an advisor today.