In the 2023/2024 Placement Cycle, the Commission for University Education and the Technical and Vocational Education and Training Authority approved 768,624 capacities for student placement in 69 universities and 210 TVET institutions. Nairobi has over 20 universities, and the demand for student accommodation is high. A section of Kenyan billionaires have invested in the lucrative real estate sector by building student hostels. One of them is Edward Kirathe, the brains behind Qwetu and Qejani student residences. What does Edward Kirathe own? Edward Kirathe, a Kenyan businessman, is the chief executive of Acorn Holdings, which is minting millions from student hostels in Nairobi. According to Business Today, Kirathe is Acorn’s single-largest individual shareholder with a 30.24% stake. In the financial year ended December 2022, Acorn recorded a net profit of KSh 855 million from student hostels as rent, Capital FM reported. The hostels host over 4,300 students who study in universities and colleges within Nairobi. How much did Acorn pay as dividends? During the period, shareholders received a dividend payout of KSh 192.5 million, up from KSh 169.6 million in the previous year. Among the projects completed by Acorn are Qwetu Hurlingham: 832-bed capacity, Qwetu Aberdares Heights II: 601-bed, Qwetu Karen: 542-bed and Qejani Karen: 808-bed. The property developer hopes to raise KSh 1.5 billion for student hostel expansion. “This year, the ASA D-Reit had a target of KSh .5 billion. The offer period is to extend to January 2024. This will enable the ASA D-Reit to make significant strides in the acquisition of land parcels as well as in meeting other project costs in the ASA D-Reit portfolio,” it stated, as reported by Business Daily. How many millionaires are in Kenya? Individuals with a high net worth of over KSh 100 million living in Kenya increased to 7,700 in 2023. Africa Wealth Report 2023, released by Henley & Partners in March 2023, showed that the trend grew by 30%. According to the report, Kenyan centi-millionaires with a net worth of over $100 million (KSh 14.5 billion) grew to 15 individuals. BY TUKO NEWS
