NAIROBI, Kenya — Acorn Holdings has partnered with Absa Bank Kenya and Co-operative Bank of Kenya to launch a financing programme aimed at helping university students access affordable accommodation and graduates secure capital to start businesses.
The initiative, known as the Zinduka Graduate Enterprise Programme, seeks to support students from university life through to entrepreneurship after graduation by linking housing access with financial inclusion.
Under the programme, university students will access unsecured accommodation loans to pay for housing in purpose-built student residences. After graduation, eligible participants will qualify for enterprise financing ranging from Sh200,000 to Sh500,000 to launch businesses.
Acorn said the programme targets between 5,000 and 10,000 new businesses annually by helping young people transition from education into economic activity.
“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,” said Acorn Holdings Chief Executive Officer Edward Kirathe.
Kirathe said the programme aims to bridge the gap between student accommodation needs and access to business financing.
“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,” he said.
Building credit history for students
The programme will be rolled out in two phases.
In the first phase, students and their parents will be listed as co-borrowers for unsecured accommodation loans, allowing students to begin developing a formal credit record while still studying.
Monthly repayments will start from Sh4,000.
According to Acorn, students who maintain consistent repayments for four years will complete university with both academic qualifications and a verified credit history.
The company said this will improve its ability to access financial services after graduation.
Kirathe said many financial institutions struggle to lend to fresh graduates because they lack credit histories and reliable indicators of repayment ability.
“Financial institutions find it difficult to lend to fresh graduates because they have no basis to assess their creditworthiness,” he said.
Through the programme, students will build a four-year financial track record that can support future borrowing.
Tackling youth unemployment
The initiative comes amid growing concerns over youth unemployment in Kenya, with many graduates turning to entrepreneurship due to limited formal employment opportunities.
The Kenya National Bureau of Statistics has previously highlighted challenges facing young job seekers, including limited employment opportunities and the need for stronger pathways into self-employment.
Acorn said the programme will use a first-loss guarantee funded by the company to reduce lending risks for participating banks.
This arrangement is expected to encourage financial institutions to extend credit to young entrepreneurs who may otherwise struggle to access loans.
Growth in the student accommodation sector
The launch builds on Acorn’s expansion in Kenya’s student housing market.
In the year ended December 2025, Acorn Investment Management Limited recorded a profit of Sh1.52 billion, representing a 9.2 percent increase compared with the previous year.
The company attributed the growth to stronger performance from its student accommodation real estate investment trusts (REITs).
Income from the Acorn Student Accommodation Income REIT increased 21 percent to Sh670 million, while revenue from the Acorn Student Accommodation Development REIT rose to Sh854 million.
