605
Kenya’s office market is undergoing a transformation as flexible workspaces gain traction amid evolving work patterns and economic recovery.
International Workplace Group (IWG), which operates brands like Regus and Spaces, plans to double its presence in the country by opening eight new centres in Nairobi, Kiambu, and Mombasa by the end of 2025, increasing its total to 20 locations.
The move comes as businesses in Kenya, from startups to multinationals, increasingly embrace hybrid work models to balance cost and flexibility.
Nairobi, a hub for East Africa’s tech and financial sectors, is seeing heightened demand for adaptable office spaces, while Mombasa is emerging as a commercial center beyond its tourism roots. IWG’s new sites include The Brick Thindigua in Kiambu, Purple Tower and Nairobi Business Park in Nairobi, and a recently opened 1,000-square-meter centre at City Mall, Nyali in Mombasa, which offers private offices and co-working spaces near key amenities.
This expansion is driven by partnerships with local property developers, such as Pramukh Tower Limited and Africa Workspace Hub Ltd, who are repurposing traditional office spaces to meet the needs of a changing workforce.
“Flexible workspaces are reshaping how businesses operate in Mombasa,” said Anish Doshi, Managing Director of Africa Workspace Hub Ltd.
“The demand for scalable, modern office solutions is growing, especially as companies look to attract talent in a competitive market.”Kenya’s young, tech-savvy workforce is a key factor in this shift. With over 60% of the population under 35, many workers prioritize flexibility and work-life balance, pushing employers to rethink traditional office setups.
A 2025 study by Arup suggests hybrid work could improve productivity by 11%, though local adoption rates are still emerging.
Meanwhile, Kenya’s commercial real estate sector is grappling with post-pandemic challenges, including oversupply in Nairobi’s office market, where vacancy rates in some areas have hovered around 20%.While IWG’s expansion signals confidence in Kenya’s economic growth, analysts note potential hurdles.
High operational costs, including unreliable power and internet in some regions, could challenge the scalability of flexible workspaces. Additionally, competition from local and regional providers may intensify as the market matures. The growth of flexible workspaces reflects broader urban and economic trends in Kenya, where cities like Nairobi and Mombasa are adapting to a global shift toward decentralized work.
By 2030, flexible spaces could account for 30% of global commercial real estate, and Kenya’s early adoption may position it as a regional leader. However, the success of this model will depend on addressing local infrastructure gaps and sustaining demand from businesses navigating economic uncertainty.
