August 2017 Updates
For years the interior road on the NEGST-AIU campus has been mostly dust or mud. This condition has led to a number of issues. CLA along with a major US foundation, are now offering a solution for this problem…the PAVING OF THE INTERIOR ROAD. This development will have significant economic impact to the school. Let me outline the proposal and the income sources.
The university has a lovely guest house facility called Kijiji. The two guest units each have 10 to 12 bedrooms. The facility also houses a dining room and small conference room. Adjacent to the guest house are two large outdoor venue areas. Kenyans love outdoor weddings and celebrations. As such, these areas are perfect for housing the events. This is “except” for the road… mud and dust are not conducive to events like these.
Paving the road will bring an additional $35,000 to $50,000 a year to the school for renting venue areas. In addition, hosting such events is likely to bring significant revenue to the restaurant and the guest rooms
The dust has created several problems on campus. Computer life is almost half when compared to other Kenyan universities and the daily cleaning of walkways and interiors has become an expensive burden. We have also noticed a deterioration of our books in the library caused by the dust.
The university is in competition with other schools for students. So, when prospective students and parents arrive and see the dirt interior road, some turn around and leave. They don’t want their children to be walking through dust or mud. The annual loss of enrollment is estimated between 5-10 students per year. Even if we lost just two students per year, that amounts to a loss of $16,000 per year in tuition and accommodation.
When the school was awarded their university charter one of the requirements was that all interior roads were to be paved. The school was granted a waiver on this requirement, but soon the CUE (Commission for University Education) will be doing a followup, and the road will certainly be an area for concern.
The dust has been so terrible, sadly, a few faculty members have left.
The cost to pave the road is now firm at a contracted price of $490,000. CLA wants to raise $300,000 and our partners in Kenya will contribute $190,000. The school’s alumni, friends, partners, faculty and students have already raised $130,000 of their goal. CLA has raised $200,000 which includes a $60,000 grant from a major US foundation along with gifts from our board and key church partners. We are asking you to push us over the top for the remaining $100,000 that we need. The construction began in July and the expected finish is this November.
Let’s review the significance of this investment. Yes, it is an investment. For years CLA has stayed focused on providing scholarships, faculty support, library books and IT equipment. We chose to endorse this project because of the economic payback. All annual numbers:
| Low Estimate | Hight Estimate | |
|---|---|---|
| Venue Rentals | $25,000 | $35,000 |
| Guest House Usage | $10,000 | $15,000 |
| Added Enrollment | $16,000 | $20,000 |
| Total Per Year | $51.000 | $70,000 |
$51,000 represents a 10.4% return on investment and at $70,000 the return soars to over 14%. One can see why we have such an interest in this project. And the return was a major reason the US Foundation was willing to help bring this to reality.
Consider too, the bonus of extended life of computers, and books, and a healthier environment.
Our hope is to reach full funding by the end of October, 2017 to enable the final construction and payment with a grand opening of the road in November.
Given this unusual opportunity we ask that you prayerfully consider what you can do to help. We are off to a good start but have a few more bricks to go. Looking forward to hearing what our Lord places on your heart.
Jim Rogers
President