This study investigated the status of private accommodation facilities for undergraduate students and the effect these have on their educational output. It was done in Kenyatta University (KU). The University had a hostel capacity of 10,086, whereas the total undergraduate student population was 50,425. Specific objectives of the study were to; assess the adequacy of private hostels accommodation, establish the effect of accommodation on the undergraduate students‟ academic life, establish the perception of private accommodation providers on University students and propose strategies that University administration can use to enhance the private hostels industry. This study was based on Education Production Function whereby accommodation as one of the educational inputs determines the educational output of the undergraduate students. Literature reviewed on security, safety standards, lighting and ventilation, availability of electricity, internet connectivity and sanitation showed that these are independent variables that determine the dependent variable i.e educational output of the students. The study adopted a descriptive survey design that had a sample size of 395 undergraduate students, 10 private accommodation providers (PAPs) and the KU Director for accommodation services. Stratified and random sampling techniques were used to get a representation of the students from 1st to 4th year, both male and female students. Simple random sampling was used to select the students. Data were collected using questionnaires for students and the Director of accommodation services and interview schedules for the Landlords /Hostel agents as well as an observation schedule. The study generated both qualitative and quantitative data which were analyzed using descriptive and inferential statistics. Results were presented in the form of frequency distribution tables, bar graphs and pie charts. The study assessed the adequacy of private accommodation for KU undergraduate students and found that; most of the private accommodation facilities were not adequate; Spearman correlation coefficient findings revealed that the status and adequacy of the room had a significant correlation with the academic performance of students. However, security and time did not have a significant correlation with the performance of the students. The study also found that PAPs viewed students as they would any other tenants and had consequently put in minimal effort if any to enhance the academic environment for the students. So, they expected the University management to improve the general infrastructure in the environs where the students lived. They also looked forward to partner with the University management so as to improve the status of private accommodation for KU undergraduate students. The study recommends that; the University invests more in accommodation facilities, engage more private developers in public private partnership in the development of more hostels, direct more resources through social responsibility towards improving the infrastructure in areas with high student population and offer PAPs training on ideal student accommodation facilities.