Co-op bank, Absa launch Ksh.1B student funding scheme

Acorn Holdings Limited has partnered with Absa Bank Kenya and Co-operative Bank Group to roll out the Zinduka Graduate Enterprise Programme, a new initiative aimed at improving access to affordable student accommodation while helping graduates secure start-up capital for business ventures.

The programme is expected to support between 5,000 and 10,000 new enterprises annually by providing business loans of between Ksh.200,000 and Ksh.500,000 to eligible graduates.

The initiative seeks to address Kenya's persistent student housing shortage and limited access to financing for young entrepreneurs. Kenya has about 500,000 university students but fewer than 40,000 university-owned beds, forcing many students to rely on informal and often costly accommodation.

Under the programme, students will access unsecured housing loans through a co-borrowing arrangement with their parents. Monthly repayments will start from Ksh.4,000, allowing students to build a credit history while pursuing their studies.

Acorn Holdings Chief Executive Officer Edward Kirathe said the programme bridges the gap between education and entrepreneurship by enabling students to establish a credit record that can later be used to access business financing.

"Most graduates struggle to secure funding because they lack a credit history. Through Zinduka, students can graduate with a verified four-year credit record, making it easier to obtain enterprise loans," he said.

The programme also includes entrepreneurship training, with students attending quarterly business development modules at Acorn's Qwetu and Qejani residences and submitting business plans to qualify for enterprise funding.

Absa Bank Kenya Managing Director and Chief Executive Officer Abdi Mohamed said the lender would provide workplace readiness training through its ReadytoWork programme, explore internship opportunities and support the creation of a seed fund for viable student-led enterprises.

More than 5,000 students are expected to benefit from tailored financing solutions aimed at making quality student accommodation more affordable.

Co-operative Bank has committed Ksh.1 billion to the initiative. Director of Youth Financial Services Joel Kaba said the bank's co-borrowing financing model would make the programme accessible and sustainable for students and their families.

Acorn currently operates 13,000 student housing beds across 15 properties under the Qwetu and Qejani brands, with an additional 7,000 beds under development.