Lights dimming for investors as student numbers fluctuate

The past 15 years have seen the number of institutions of higher learning rise exponentially, partly to address rising demand for university education.

The distribution of the new institutions was also aided by local interests, as politicians jostled to have “our own university” in their backyards.

Middle-level colleges were earmarked for upgrading and lobbying by politicians followed to convert them to universities.

The universities and colleges, as expected, attracted investors keen to make an extra coin as they provided vital services to the surging student and staff populations.

However, the number of top grades and university qualifiers drastically fell with reforms by the Education Ministry and efforts to stop rampant cheating in the Kenya Certificate of Secondary Education (KCSE) examinations.

The universities started receiving fewer numbers of learners too. It meant the fortunes of the investors also fell with the number of students.

Most of the new universities are struggling to stay afloat. At Taita Taveta University, for example, undergraduate enrolment has dropped to 650 students from 1,000 in the previous two academic years.

BUSINESS OPPORTUNITIES

The institution was opened in 2007 as a campus of Jomo Kenyatta University of Agriculture and Technology and later made a constituent college.

In 2016, it received a charter to become a fully fledged university, with its student population hitting 3,600.

But things have not been rosy. Admission has dropped significantly in the past two academic years.

“We get enough funds from the government for recurrent and capital expenditure. The university, however, has to generate income through fees and levies for other expenditure,” Deputy Vice-Chancellor for Academic Affairs, Research and Outreach Christine Onyango told the Sunday Nation.

Despite the falling student numbers, real-estate investors are scrambling for land in Mariwenyi, where university is located.

They are putting up hostels for students and residential houses for workers. Ms Joyce Mwatee, a Mariwenyi resident, said the high number of students has created demand for accommodation.

Some learners even seek accommodation in Voi, a town more than 15 kilometres away.

The trading centre also has cyber cafes and several eateries. “The trading centre is growing. Businesses rushed here to cash in on the new opportunities,” Ms Mwatee said.

CHANGE OF TACK

The students are also regular customers of greengrocers. “Business opportunities opened up when the university was established. This place will become a small town if the student population grows,” said Mr Emmanuel, another local.

Elsewhere, in the resort town of Kilifi, when Pwani University was granted a charter in 2013, the price of land there skyrocketed as investors flocked in.

The former constituent college of Kenyatta University, with a population of more than 7,800 students, is strategically located on the Mombasa-Malindi road.

Hostels, retail shops, salons, clubs, cyber cafes, pharmacies and mini markets are among the notable establishments that sprouted in the area.

But the area is now a shell of its former self, with locals who had turned their houses into hostels reverting to rentals in order to attract better-paying tenants.

“The university is the backbone of the Kilifi Town economy. Many families depend on it. They include boda-bodas, greengrocers, mobile money stalls, shops, butcheries, salons, clinics and retail shops,” said Mr James Mwavita, an M-Pesa agent who shifted base from Malindi to a shop outside the university.

“I used to make a lot of money between 2014 and 2017. Things are tough these days. I make huge losses when students are on holiday,” he said.

Mr Hamisi Salim, a landlord, told the Sunday Nation that there are more than 30 hostels outside Pwani University but the owners have turned the buildings into shops and rental rooms.

“Some 24 students in my hostel used to pay Sh3,000 per bed. I made Sh72,000 a month, but I converted my house into a rental unit. I don’t want to incur losses when the students are on a long recess,” Mr Salim said.

WORRYING TREND

Cyber cafe attendant Erick Mzee said he used to make Sh60,000 a month but his income has dropped by half. “Business is bad generally, but it is worse when the university closes,” he said.

Pwani University administrators could not comment on the student population as Vice-Chancellor Mohamed Rajab was unavailable.

But a source said the student numbers have increased marginally in the recent past. “The growth is still worrying. We got the charter at almost the same time as Kisii and Maasai Mara universities,” the source said.

“Maasai University has more than 12,000 students and a 2,700-bed capacity, while ours is only 800. More than three quarters of the students live outside the university, meaning their security is compromised.”

When students go for long holidays - from May to September - the Pwani University neighbourhood is deserted. “This has ripple effects on businesses around here,” a trader said.

Shrinking student numbers have also hurt businesses and the community around Jaramogi Oginga Odinga University of Science and Technology.

Enrolment has dropped by almost half, said Vice-Chancellor Stephen Agong.

“We used to admit more than 2,000 students, but we are now doing slightly above 1,000. The huge student population was a very good source of revenue even for locals,” Prof Agong told the Sunday Nation.

LOST REVENUE

He, however, exuded confidence that enrolment at the university that was founded in 2009 and attained university status in 2013 would pick up soon.

“We used to get orders for meals whenever the university held an event. Lecturers and other staff would come for lunch and supper when attending scheduled talks, but the number keeps shrinking,” said Ms Millicent Atieno Otiwu, the owner of Christian Centre 84 Hotel in Bondo.

Mr Fred Otieno Oduor, another businessman, said there was a sudden surge in sales at his Ratuoro bookstore when the university was established. The situation has changed.

“We even began selling college books and learning materials. I would restock frequently,” Mr Oduor said.

He added that he bought a quarter-acre plot next to the university valued at Sh1.1 million to build a hostel.

“I had even bought building materials. One of my neighbours intended to put up a hostel but changed the plan to a residential house,” he said

Another hostel on the Bondo-Ndori road, near Opoda farm, stands abandoned due lack of students.

The 61-capacity hostel was built by the Visionary Franciscan Sisters of St Anna a year ago.

A nun, who spoke on the condition of anonymity, said the idea was mooted two years earlier, with the target being female students.

“We were moved by the suffering of girls. Many risked their lives renting rooms in areas that were not safe,” she said.

INNOVATION

She added that her group is now stuck with the multimillion-shilling investment, with few options.

“We are thinking of converting the hostel to a hotel but the process is complex and time-consuming,” she said.

Another headache for the nuns is that the rooms were designed to be used as hostels. Converting the building to a hotel will mean undertaking costly renovations.

Ms Mbinya Kanzi, a third-year student of special-needs education, specialising in hearing impairment, sells second-hand shoes to fellow learners at the university.

“When business was good, I would make two trips to Kongowea market, Mombasa, for restocking every semester. I now rely on relatives to send the stocks and local suppliers but that is expensive,” she said.

Prof Agong said Jaramogi Oginga University continues to engage in other activities that benefit the community.

“The university is meant for social good. Apart from the students, we also deal with research, outreach and other programmes as we implement our strategic plans,” the VC said.

“Through our insect-for-food innovation, free annual medical camps and holding open days, we strive to ensure the relationship with the community is good.”

The Siaya-based university is celebrated for establishing the Africa Centre of Excellence in Sustainable Use of Insects as Food and Feeds (Insefoods) with funding from the World Bank.

“The overall objective of Insefoods is to achieve long-term nutritional security by using insects as a cost-effective, reliable and sustainable source of protein and other nutrients,” Prof Agong said.

LIFELINE

Before the government converted Meru College of Technology into a university in 2008, Nchiru was a nondescript dusty rural market.

With a few dozen traders, there was nothing to write about Nchiru.

With the conversion of the college to Meru University College of Science and Technology and subsequent elevation to a fully fledged university in 2013, Nchiru’s fortunes rapidly changed.

Situated 15 kilometres north of Meru Town, the market – which also hosts the shrine and headquarters of Njuri Ncheke Council of Elders – has grown by leaps and bounds.

The price of land has skyrocketed. A quarter-acre plot that used to sell for Sh200,000 is now going for at least Sh1.5 million.

New multi-storey buildings have risen in Nchiru. Mr Joshua Mwiti, a butcher who diversified into real estate, explained the excitement that greeted the establishment of the university.

“Suddenly, the student population shot up. There were few hostels around,” Mr Mwiti said as he supervised the renovation of one of his houses.

However, with the decrease in enrolment for self-sponsored academic programmes from last year, the commercial bubble seems to have burst.

Mr Mwiti said about 70 of his 120 rooms are occupied. Students no longer want to pay rent deposits.

Landlords have also lowered monthly rent from Sh4,000 to Sh2,000. “Many of the occupants used to be certificate and diploma students,” Mr Mwiti said.

There are several incomplete storeyed buildings in Nchiru that are occupied by students.

“Students in the parallel programmes had a lot of money. The number of bars in Nchiru outnumbered hotels. Many have since been closed down. Business now only peaks when students receive money from the Higher Education Loans Board,” said Mr Peter Mugambi, another trader.

IMPROVE INFRASTRUCTURE

He added that many learners have shifted to other towns like Kianjai, where rent is cheaper.

“Some students have bought mountain bikes while others have skating boards. The business of many landlords has not broken even. It will be a miracle if they repay their loans,” Mr Mugambi added.

Ms Catherine Kagwiria, a greengrocer, remembers the good old days when the university was established.

“I used to make sales of up to Sh5,000 a day but we now struggle to make Sh3,000,” she said.

Ms Kagwiria blames the student exodus on bad roads and lack of street lights in Nchiru.

But Vice-Chancellor Romanus Odhiambo said better days lie ahead, adding that the student population would definitely increase in May.

Prof Odhiambo said the institution can only accommodate 1,000 students and told businesses to prepare for more tenants as the numbers increase in two months.

The university has opened a campus in Meru Town and a learning centre in Marimba.

Kirinyaga University began as a constituent college in 2012, admitting 170 students.

It was awarded its charter in 2016. It has a student population of 4,400. Kirinyaga University is partly credited with the growth of Kutus, the headquarters of the county.

Supermarkets, hostels, shops and eateries make huge profits as the university provides a ready market.

“All the food I prepare is consumed by the students, most of them staying in the town. I make a good profit,” Ms Wambui Waweru, a hotel owner told the Sunday Nation.

COMMENDABLE GROWTH

Ms Stacy Nyawira, who runs a shop near the university, says students and university employees are her regular customers.

Mr Njeru Kaguma, a landlord, is also doing good business. “All the rooms at my hostel are booked. The establishment of the university has led to the mushrooming of many businesses in Karatina. We cannot complain,” Mr Kaguma said.

Kirinyaga University VC Mary Ndung’u said about 4,000 students have rented rooms outside the campus, contributing enormously to the growth of business in Kutus and the surrounding areas.

“The university has grown rapidly and residents have taken advantage of the new opportunities,” Prof Ndung’u said.

She added that Kirinyaga University did not have a parallel degree programme, meaning the reforms by the Education Ministry have not affected it.

In the past few years, businesses around Karatina University in Nyeri have suffered losses due to a reduced number of students.

Mr Martin Mwangi, whose matatu has operated on the Karatina town-Karatina University road since 2012, told the Sunday Nation that daily trips have dropped significantly.

“I used to do about seven trips daily but the number has gone down to three. Few students are going to town,” Mr Mwangi said.

The institution started in 2007 as the Mount Kenya campus of Moi University. It was renamed Karatina University College in 2010.

The college was upgraded to a fully fledged university in 2013. “When I came here in 2012, there were few hostels, so many students rented rooms in town,” he said.

Residential and business storeyed buildings have been put up in Gitunduti, with more still being built.

STUDENT HOSTELS

The once sleepy market now boasts stocked shops, hotels and bars.

“The university has opened up the village and we make a profit because of the large number of students,” food vendor Ann Wanjiru told the Sunday Nation.

Businesses got a lifeline with the opening of Bomet University College four years ago. Modern houses have been built in Bomet Town.

The number of students admitted has risen from the initial 73 to 800. Some 500 more will join the institution in the coming few months.

Kenya National Chamber of Commerce and Industry Bomet chapter chairman Leonard Langat said the university has led to the transformation of the town, with office blocks also coming up.

“The demand for single rooms is growing. University workers prefer one or two-bedroomed houses,” he said.

College Principal Anne Nangulu said the core business of the institution is academic and not providing accommodation to students.

“It is important that businesspeople and landowners build modern hostels to cater for the needs of the rising number of students,” Prof Nangulu said.

During a recent meeting, Bomet Governor Hillary Barchok urged traders to take advantage of the opportunities brought by the institution.

“Apart from academic courses, the university has a lot of economic benefits. It is a market for agricultural produce and services,” Dr Barchok said.

Apart from hostels and residential houses, several hotels, bars and nightclubs have opened in the town.

PROGRAMME SCRAPED

At the University of Kabianga in Kericho County, the discontinuation of parallel degree programmes has taken a toll on businesses in the neighbourhood.

Residential houses and hostels are deserted as the number of students continues to fall.

“Investors are a distressed lot. Most of the houses built specifically for students are empty,” Mr Peter Mutai, a Kabianga resident, said, adding that the value of land has nosedived.

“An eighth of an acre around the university used to go for Sh1.5 million a few years ago but has now dropped to between Sh500,000 and Sh700,000.”

Shop and restaurant owners have reported poor business in the past two years.

Before that, hundreds of students pursuing their education under the parallel programme stayed in the neighbourhood.

“Some grocery stalls, milk bars and other small businesses in Chemnyokaa and Kabianga have since closed,” said Ms Mercy Cherotich, a trader.

Vegetable and fruit farmers have switched to other ventures as the market for their produce dwindles.

The number of students at the university’s Kericho Town campus has also declined.

The Sunday Nation could not verify the current student population as VC Wilson Kipngeno could not be reached.

Report by Lucy Mkanyika, Winnie Atieno, Justus Ochieng, Dickens Wasonga, Charles Wanyoro, Reginah Kinogu and Vitalis Kimutai