Co‑working space provider Kofisi has closed two of its Nairobi locations—Karen and Upper Hill—after reporting a KSh 416.7 million (USD 3.2 million) loss in 2024, reversing a profit of KSh 2.3 billion (USD 16.3 million) in 2023.
According to its annual report for the year ended December 31, 2024, the London-based company closed the two sites to concentrate on larger, higher-capacity centres in Kenya. The move is designed to enhance client experience through community spaces, hotel‑style services, and economies of scale.
Kenya Remains Kofisi’s Largest Market
Despite the loss, Kofisi’s revenues rose 24.5% to KSh 1.4 billion (USD 10.3 million) in 2024, supported by occupancy rates above 90%. Kenya accounted for KSh 1.0 billion (approximately USD 7.6 million), or 74.4% of the total revenue, making it the company’s largest market in Africa.
Kofisi currently operates four of its 11 co‑working spaces on the continent in Nairobi.
Financial Performance and One‑Off Events
The company attributed the 2024 loss partly to unusual, one‑off events outside normal operations. In its filings, Kofisi noted that revenues remain strong enough to support overheads, resulting in positive normalised operating EBITDA.
Expansion Plans Across Africa and GCC
Looking ahead, Kofisi plans to raise KSh 4.5 billion through debt and equity to fund new locations in 2026.
Its pipeline exceeds 1 million square feet, with developments planned in Egypt, Ethiopia, Ghana, and the GCC, alongside its first Dubai site.
Together with Workshop17, Kofisi’s combined portfolio is projected to reach 1 million square feet, tripling in size since their partnership began in 2023.
Market Impact: Larger, Flexible Workspaces Gain Ground
Kofisi’s Nairobi closures highlight a broader trend in the office real estate sector: demand is shifting toward larger, flexible, high‑capacity workspaces.
- Grade A offices in prime nodes are expected to remain resilient, supported by strong occupancy and stable rents.
- Older or smaller office buildings may face prolonged vacancies unless repositioned or refurbished.
- Landlords are increasingly adapting by offering serviced offices, shared amenities, and flexible leasing models.
East Africa Office Market: Flight to Quality and ESG Demand Reshape Leasing Dynamics
Outlook for Kenya’s Office Market
The sector is evolving into a tenant‑driven market, where flexibility, quality, and economies of scale will determine performance. Operators and occupiers are prioritising efficiency and enhanced workplace experiences, favouring well‑located, high‑capacity centres such as Kofisi Square and Kofisi Kaskazi in Nairobi.
