Acorn, Absa and Co-op bank unveil Ksh1Bn enterprise programme to expand access to affordable student housing

Acorn Holdings Limited has joined forces with Absa Bank Kenya and Co-operative Bank Group to launch the Zinduka Graduate Enterprise Programme, an initiative designed to expand access to affordable student housing while enabling graduates to access seed capital to start and grow their businesses.

The programme is expected to support between 5,000 and 10,000 new enterprises each year, with eligible graduates able to access business loans ranging from Ksh 200,000 to Ksh 500,000. It is designed to empower young entrepreneurs to start, expand, and sustain businesses, while also contributing to Kenya’s economic growth and job creation.

According to stakeholders, the partnership aims to address the challenges university students face in accessing quality, affordable accommodation and post-graduation enterprise funding.

Kenya has about 500,000 students enrolled in universities, yet there are fewer than 40,000 university-owned beds. This leaves roughly 460,000 students relying on informal, unregulated housing that is often unsafe, poorly serviced, and more expensive than it appears.

The first phase of the two-stage programme is designed to address the housing challenge by providing unsecured housing loans that enable students to access affordable accommodation.

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Under this arrangement, both the student and their parent are listed as co-borrowers, allowing the student to build a credit history that financial institutions can later use to assess creditworthiness. With monthly repayments starting at Ksh 4,000, students are able to begin developing a formal credit record while still in school.

The second phase of the initiative focuses on enterprise financing, where graduates are supported with start-up capital through the Zinduka Enterprise Programme. This component is informed by the reality that only about 15 per cent of graduates secure formal employment, while the majority are left to create their own livelihoods.

Many of them do so without adequate business skills, a credit history, or access to start-up funding, highlighting the limited absorption capacity of Kenya’s formal job market.

“The formal job market is only able to absorb about one in ten graduates. This means the vast majority must create their own opportunities through entrepreneurship rather than rely on formal employment.

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Zinduka bridges a critical gap by connecting a student’s journey from securing their first home away from home to accessing the capital needed to launch their first business,” said Edward Kirathe, Chief Executive Officer, Acorn Holdings Limited.

Acorn Holdings is a major player in the student housing sector, having developed the Qwetu and Qejani accommodation brands for students across universities in Nairobi. The hostels serve students from more than 60 countries and over 119 universities and colleges.

Its partnership with Absa Bank Kenya and the Co-operative Bank Group expands Acorn’s impact beyond housing by integrating financial services and entrepreneurship support into the student living experience.

The companies affirm that the initiative will enhance financial inclusion among young people while promoting enterprise development and job creation across Kenya.

By Frank Mugwe