NHC, Machakos University ink Sh1b hostel deal to ease student housing crisis

Machakos University Vice Chancellor Joyce Agalo and NHC Chairman Yusuf Shanzu after signing an MoU on the construction of over 3,000 hostels in the institution at a cost of Sh1 billion, on June 23, 2025. [Antony Gitonga, Standard] 

Machakos University will benefit from the construction of 3,000 hostel units through a partnership with the National Housing Corporation (NHC).

This initiative, backed by a joint investment of Sh1 billion, aims to address the current housing crisis at the university, which currently has only 500 hostel units for its population of 12,000 students.

According to Vice Chancellor Prof. Joyce Agalo, shortage of adequate accommodation has limited students’ access to essential research and ICT facilities, while also contributing to security concerns outside the campus. She said the project will provide comfortable and sustainable hostel units, with the construction expected to be completed within one year.

This agreement marks the first collaboration of its kind between a local university and the NHC.

During the signing ceremony of the Memorandum of Understanding in Naivasha, NHC Managing Director David Mathu said that, as part of its strategic plan for 2023-2027, the corporation aims to construct over 110,000 housing units nationwide as part of the Universal Housing Programme.

Mathu, announced that NHC will invest Sh1 billion to operationalize the signed MOU with Machakos University.

He stated that this partnership will allow the university to benefit from low-cost, sustainable housing units, addressing the housing gap in universities.

“We plan to inject Sh1 billion towards the initial operationalization of our partnership with the university to realize the 3,000 rental units,” he noted.

Mathu revealed that the corporation is undertaking another 17 housing projects across the country, with a goal to contribute 10 per cent to the nationwide initiative of one million housing projects by 2017.

The NHC has also partnered with the Public-Private International Financial Corporation (IFC) to facilitate the construction of the 3,000 units in Machakos County across 150 plots of land.

Yusuf Shanzu, Chairman of the NHC Board, remarked that universities have been struggling with inadequate funding, which necessitates prompt solutions.

He affirmed that through this partnership, Machakos University will gain access to ongoing low-cost hostel units, making them more affordable compared to expensive private rental options.

“Kenyan universities have been grappling with inadequate hostel facilities, and this partnership represents a positive step forward,” said Shanzu.