A monumental partnership has been forged between Stanbic Bank, MiDA Advisors, and Acorn Holdings to secure Sh91.5 billion in long-term blended finance for the development of green, affordable student housing in Kenya.

This initiative represents a major advancement in sustainable infrastructure and education access in the country.

The financing arrangement, pending approval, will include a Sh23.5 billion contribution from the United States Development Finance Corporation (DFC).

This will be supplemented by more than Sh50 billion financing, co-ordinated by Stanbic Bank Kenya and MiDA Advisors. Additionally, the project will garner Sh41.1 billion in financing from Kenyan capital markets, totalling Sh120 billion over an 18-year period.

Joshua Oigara, CEO of Stanbic Bank Kenya and South Sudan, highlighted the significance of this deal

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“As a Bank, we pride ourselves on being a catalyst for growth in the region, with sustainable finance acting as an enabler," Oigara stated.

"This blended finance deal would mark one of the largest impact investment transactions in Kenya, with long-term impact on job creation, sustainable housing and education."

Oigara disclosed that they are in the final stages of the structuring process and remain committed to the growth of Acorn Holdings and to the country’s sustainable infrastructure goals.”

Alakh Kohli, Head of Corporate and Investment Banking at Stanbic Bank Kenya, highlighted the bank's previous achievements and future goals in green financing.

"In the past years, we have mobilized about Sh16 billion for green or sustainability linked facilities and we remain keen on unlocking more green finance opportunities in Kenya. This partnership would not only advance our growth journey with Acorn but would help us drive more societal impact," Kohil said.

"We are excited to be lead arranger in one of the largest transactions in affordable green housing in the region and will leverage our investment capabilities to drive a successful transaction upon approval."

This collaboration aims to construct 35 certified green housing projects, providing approximately 48,000 new student beds over the next decade.

This makes it the largest investment in student housing in Africa, addressing the significant shortage of quality, affordable accommodation for tertiary students in Kenya.

The initiative is expected to generate around 15,000 direct jobs and 35,000 indirect jobs, thereby stimulating economic growth.

The new housing units will offer students a supportive learning environment, enhancing their access to education.

This venture builds on Stanbic Bank's history of collaboration with Acorn Holdings. Previously, the bank facilitated East Africa’s first green bond with Acorn Holdings, which funded eco-friendly student housing in Nairobi.

Standard Bank also supported the largest acquisition of Acorn Holdings' Income and Development Real Estate Investment Trusts (REITs) through the Unquoted Securities Platform.

This new project underscores Stanbic Bank’s commitment to sustainable development and impactful investment in Kenya’s educational and infrastructure sectors.