Kofisi shutters branches, pivots to premium hubs

At a Glance

Kofisi closes Karen and Upper Hill offices after $3.2 million financial setback.
Focus shifts to Westlands, Riverside flagship offices with premium amenities and scale.
Expansion continues with Falco-backed landmark centers across Africa despite suburban retrenchment.

Kenya’s leading hospitality-led workspace provider, Kofisi, has shut down two Nairobi branches in Karen and Upper Hill after posting a net loss of Ksh417 million ($3.2 million) for 2024.

The closures highlight challenges facing flexible office operators as corporate demand patterns shift.

Kofisi pivots to flagship premium offices after closures
Kofisi is now doubling down on its flagship Westlands and Riverside offices, offering premium amenities and larger-scale workspaces.

The company continues its expansion across Africa, backed by a $10.5 million investment from London-based Falco Group, signaling confidence in large-format, high-end office developments despite suburban retrenchments.

The Karen branch, opened in 2019, was part of Kofisi’s suburban expansion strategy, targeting affluent residential areas. Improved city connectivity, including the Nairobi Expressway, has reduced the appeal of suburban offices, prompting Kofisi’s strategic retrenchment.

Investment and Expansion Across Africa
In September 2025, London-based Falco Group invested $10.5 million in Kofisi, supporting the rollout of large-format, premium offices across Africa. Partnerships, including a May 2024 alliance with South Africa’s Workshop17, have created the largest independent serviced-office network on the continent.

Future Outlook
Despite branch closures, Kofisi remains Kenya’s largest hospitality-led workspace provider with nearly 300,000 square feet in Nairobi. Long-term ambitions include scaling to one million square feet across Africa, targeting markets such as Kigali and Casablanca.