Nkumba University has secured a multi-billion shilling loan from the Uganda Development Bank (UDB) to finance the construction of modern student hostels at Mpoobe Hostel Village, Katabi Town Council, a landmark project aimed at addressing the university’s acute student accommodation shortage.
University officials say this is a breakthrough as the institution intends to exert more efforts in enhancing student welfare, improving learning conditions, and strengthening institutional sustainability. “We are delighted that Uganda Development Bank has accepted to partner with us,” said Prof. Jude Lubega, Vice Chancellor, Nkumba University. “This is a significant milestone in our journey to provide a secure, affordable, and modern housing environment for our students.”
Home to more than 6,000 students, Nkumba University currently has room capacity for only about 400 on campus. And with over 2,000 new admissions each year, the accommodation strain is expected to intensify. “This gap has forced the majority of our learners to seek private housing in nearby communities. That not only raises their cost of living but also exposes them to security risks and affects their overall satisfaction and retention.” Revealed Mr Francis Sengendo, Nkumba University Secretary. Related research also indicates a 25% student attrition rate due to this factor.
To solve the problem, the Board of Trustees and University Council resolved to develop the Mpoobe Students’ Hostel Village on university-owned land. The project is designed to provide safe, affordable, and well-serviced accommodation while generating sustainable revenue for the institution.
Nkumba University formally applied to Uganda Development Bank on September 21, 2025, seeking a Shs12.5 billion loan to develop the land. After months of due diligence, consultative meetings, and submission of all required documentation, the bank has now completed its appraisal and granted the loan.
During an initiation meeting, officials from UDB confirmed the decision, noting that the facility aligns with its mandate to promote sustainable socio-economic development through investments in education and infrastructure.
With the loan approval, the University will now embark on the implementation phase of the hostel project at Plot 5, Block 444–445 Mpoobe. As preparations take shape, Nkumba University has hailed the bank for its confidence and partnership. “We appreciate UDB’s trust in our vision. Together, we are laying a foundation for a stronger, more student-centered University.” Said Mr. Ssegendo.
Established in 1994 and tracing its legacy to a humble beginning in 1952, Nkumba University is a private, not-for-profit chartered institution guided by its vision “To be a leading national, regional, and global hub for academic and professional excellence” with focus on its mission that seeks “To provide an environment that enables the cultivation of competence, confidence, creativity, and character.”
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