Students shelter provider Qwetu throws its doors wide open

Qwetu Hostels in Nairobi’s Ruaraka area. 

Photo credit: File | Nation Media Group

What you need to know:

  • The hostels provider is now betting on resumption of studies to regain lost ground just like most businesses in the country.
  • Since reopening of their residences in June, they have seen an influx of students preferring to stay in their hostels even as they attend virtual classes.

Purpose-built student accommodation provider Qwetu residences has resumed its operations after meeting all Covid-19 safety guidelines.

The protocols were issued by the Ministry of Health and the Directorate of Occupational Safety and Health Services, which have been incorporated into their hygiene and housekeeping protocols at all their four residences.

The hostels provider is now betting on resumption of studies to regain lost ground just like most businesses in the country.

"An audit by public health officers, at our residences found all four to be compliant with the Covid-19 protocols and procedures were, therefore, recommended and cleared for immediate occupancy," Ms Patricia Wambua Qwetu Residences’ spokesperson told Smart Business last week.

She noted that some of the measures adopted by the student accommodation provider, include contactless customer transactions through their QCare service, social distancing protocols in their complementary shuttle buses and the formation of a Health Safety Security and Environment audit team to inspect all their residences three times a month to ensure compliance.

Since reopening of their residences in June, they have seen an influx of students preferring to stay in their hostels even as they attend virtual classes.

Meet demand

“At this rate, we expect our waiting list for January 2021 to exceed our current capacity,” said Ms Wambua.

To help meet demand, they will be launching a new student accommodation brand called Qejani to provide affordable hostels to students, especially in underserved areas.

"Our plan is to provide a fresh approach to housing for students in Kenya with product pricing that caters to all income brackets, including students who would otherwise have been locked out from access to quality accommodation. Our new and affordable student housing brand Qejani will seek to help meet this demand in an innovative way,” said Ms Wambua.

She foresees a severe shortage of student accommodation in the country when physical classes resume in January 2021, because of the already over-crowded facilities which will be deemed unfit for occupation in light of the Covid-19 health guidelines.

“Most hostels – both on and off campus – have previously been overcrowded and will now be required to operate at lower capacities because of Covid-19 guidelines, further complicating the student accommodation challenges in higher education. We intend to do our part to address this challenge as Qwetu and Qejani,” she said.

Qwetu residences are located along Jogoo Road, in Ruaraka, Parklands and Madaraka in Nairobi City County with plans to open more.

Qwetu and Qejani are brands of Acorn Holdings Africa a leading integrated real estate business providing purpose-built rental housing for young people.

Kenya currently faces a biting shortage of student accommodation. Learner numbers have grown from 27,000 students in 1990 to around 550,000 today. There are currently fewer than 40,000 beds available at the country’s universities.

Among the first to fill this gap includes Acorn is the first purpose-built student accommodation provider in the country. Since 2015, it has built three student properties, proving over 1,600 beds, and is addressing the student housing deficit in Kenya.

Student accommodation

Kenya is lagging behind in unlocking the business potential in student accommodation despite the high returns it attracts in developed countries, says real estate management firm JLL. Currently, student accommodation shortfall accounts for 40 per cent of the country’s housing shortage. This has strained on-campus accommodation facilities, forcing students to seek private accommodation.

Student housing, or purpose-built student accommodation refers to housing that has been designed specifically to meet demands and requirements of the modern-day student.

The concept has gained much traction globally and has become a mainstream investment class asset gaining more attention from institutional investors especially in developed European markets and the United States, driven by the huge student enrolment numbers and a failure on the institutions’ part to provide accommodation that is commensurate with the increase in student enrolment populations.

19.8 million students

For instance, the US market registered 19.8 million students in 2019, of which 1.5 million were international, against a student housing supply of 2.7 million. Generally, the US, UK and Australia markets accounted for the largest share of international students in 2019 with 26.0 percent, 12.0 percent, and 8.0 percent, respectively.

Other factors influencing the growth include high rental yields in comparison to other assets, and the sub-sector’s stability even in times of economic downturns.

In Kenya, the concept is also gradually gaining traction as the demand-supply gap between student accommodation and student enrolment continues to widen every year. Recently Acorn listed a green bond that is targeted at funding student housing and has recently discussed the potential for a D-REIT, again targeted at student housing.