NAIROBI, Kenya— Kofisi, one of Africa’s leading providers of shared workspaces and flexible office solutions, has closed two of its Nairobi co-working spaces after posting a Sh417 million loss in 2024, adding to a growing list of companies scaling down or exiting the city amid a tough business environment.
In its annual report for the year ended December 31, 2024, the London-based firm confirmed it had shut its Karen and Upper Hill locations, saying the move was part of a strategic shift toward larger, high-capacity offices.
The closures come at a time when thousands of jobs in Nairobi and other parts of the country are under threat, following the dissolution of more than 100 companies and warnings from dozens more that they could shut down within months, according to recent Kenya Gazette notices.
Why Kofisi shut its Nairobi offices
Kofisi said the decision was aimed at concentrating resources on flagship centres that offer better scale and improved client experiences.
“This is to allow the company to focus on larger spaces where the client experience can be enhanced by a mixture of community spaces, investments in hotelification of service, and larger economies of scale,” the company said.
The restructuring follows a sharp financial downturn, with Kofisi recording a Sh417 million loss in 2024, reversing the Sh2.1 billion profit posted in 2023.
According to the company, the loss was driven by significant one-off and unusual costs, rather than weaknesses in its core operations.
“Revenues for 2024, and as at the date of this report, on a run-rate basis, are at a level capable of supporting the central overhead base, resulting in positive normalised operating EBITDA,” Kofisi said.
Closures reflect a wider Nairobi business squeeze
Kofisi’s downsizing mirrors a broader trend across Nairobi, where manufacturers, ICT firms, retailers and service companies have either shut down or announced plans to exit the market.
Recent notices by the Registrar of Companies show that over 116 companies were dissolved, while another 115 firms issued warnings of possible closure within three months, a development expected to leave thousands of workers jobless.
The Federation of Kenya Employers (FKE) has previously warned that tens of thousands of jobs have already been lost in the formal private sector, citing high interest rates, rising operational costs, and unpredictable policy changes.
Against this backdrop, Nairobi’s commercial real estate and co-working sectors have come under pressure, as companies downsize, renegotiate leases, or abandon physical office space altogether.
Despite the Nairobi closures, Kofisi insists Kenya remains its largest African market, accounting for four of its 11 locations on the continent.
The company has announced plans to raise Sh4.5 billion through a mix of debt and equity, including project finance, equity investments and a rights issue, to fund expansion from 2026.
Its development pipeline now exceeds one million square feet, with planned new locations in Egypt, Ethiopia, Ghana and the GCC region.
Kofisi currently manages and is constructing 11 locations totalling 441,000 square feet, and plans to add three more sites in 2026, including its first location in Dubai.
Through its partnership with Workshop17, the combined portfolio is expected to reach one million square feet, effectively tripling in size since 2023.
Shift to large, enterprise-focused hubs
Going forward, Kofisi says its growth strategy will focus on large-scale, high-capacity centres such as Kofisi Square and Kofisi Kaskazi in Nairobi, designed to serve multinational and enterprise clients.
These hubs combine private offices, shared community spaces and hospitality-style services, with credit products funding physical expansion and equity capital supporting platform and service investments.
The company says the approach is aimed at ensuring long-term sustainability, even as Nairobi’s business landscape continues to feel the strain of a slowing economy.
