Edward Kirathe’s Acorn secures plot for first hostel outside Nairobi

Omokolade Ajayi -
Key Points
  • Acorn Holdings expands into Eldoret with a strategic land acquisition, marking its student housing growth beyond Nairobi.
  • Acorn plans to raise $21.7 million through market offers and rights issues to fund new student hostels in key urban centers.
  • Acorn's assets reach $142 million, with 17,000 PBSA beds across 17 properties, cementing its leadership in Kenya’s student housing sector.

Acorn Holdings Africa, the Nairobi-based property development firm led by Kenyan real estate magnate Edward Kirathe, has announced the acquisition of a strategic parcel of land in Eldoret town. This marks the company's expansion into student housing beyond Nairobi, as it continues to scale its real estate and student accommodation projects across Kenya.

Capital raise supports expansion efforts

The move aligns with Acorn's broader strategy to enhance its regional footprint. The company aims to solidify its position as a leading developer of student hostels in Kenya, following its recent announcement to raise $21.7 million. This capital boost will support the company’s ambitious growth plans, including the development of new hostels in key tier-two urban centers.

In August, Acorn detailed plans to secure this capital through open market offers and rights issues, which started in late April. The raise includes Ksh1.9 billion ($14.7 million) for the Acorn Student Accommodation I-Reit and, Ksh810 million ($6.27 million) for the D-Reit. This funding will support both ongoing and future projects.

New student hostels planned for Nairobi

Acorn's recent semi-annual report for its Acorn Student Accommodation Development-Reit indicated a targeted expansion into tier-two urban centers, including Eldoret and Kakamega. 

This strategic focus follows the company's successful developments in Nairobi and Kiambu County. Notable projects in Nairobi include the Qwetu hostel for Jomo Kenyatta University of Agriculture and Technology students and a 1,116-bed Qejani hostel in Juja.

In Nairobi, Acorn plans to expand its presence with new Qwetu and Qejani hostels strategically located to serve students from the University of Nairobi and the Technical University of Kenya. Its ambitious development plans underline its dedication to addressing the growing demand for Purpose-Built Student Accommodation (PBSA) across the Nairobi Metropolitan Area.

Acorn Holdings assets reach $142 million

Under the leadership of Edward Kirathe, Acorn Holdings Africa has solidified its status as a major player in Kenya's real estate sector. The company boasts a portfolio of over 65 successful projects, with total assets valued at Ksh18.3 billion ($142 million).

Currently, Acorn provides 17,000 PBSA beds across 17 properties and 6,000 operational beds across nine properties. As Acorn Holdings Africa continues to expand its reach and enhance its offerings, the recent land acquisition in Eldoret marks a significant step in its mission to revolutionize student accommodation in Kenya.