Kenyan commercial bank, Jamii Bora Bank is giving a Sh28 million ($318,000) loan to Shanzu Teachers Training College for the construction of new hostels, as the lender continues funding student housing facilities.
Sam Kimani, MD of the bank, calls the funding a new area of interest for the bank. The new loan facility is the second of such the bank would give out since June, raising its total contribution to this niche to $11.7 million.
“We recently got into a partnership with Murang’a University College to finance development of a 5,000-capacity hostel project to the tune of Sh1 billion ($11.4 million),” said Kimani.
Jamii Bora, according to him, sees the loan deal with Shanzu as its contribution to the growth of the institution.
The school intends to build a 200-bed hostel for its school of business in Mombasa County, with the loan taken under a five-year mortgage. Shanzu expects the new housing to help it improve enrolment hence, more income for further expansion.
James Ziro, the college principal said construction of the hostel had already begun and a completion date of June 2015 has been proposed.
Pan African student housing company, AfricanIcon had earlier in the year said about 350,000 beds are needed annually in Kenyan tertiary institutions, signaling a huge investment opportunity for developers and financiers.
Jamii Bora Bank is expected to exploit the opportunity as it continues growing its revenue. The bank reported a profit of Sh157.2 million ($1.82 million) for 2013. (VENTURES AFRICA)