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Kenya’s Flexible Workspace Sector Gains Momentum as IWG Plans Major Expansion
The expansion includes new sites such as The Brick Thindigua in Kiambu, Purple Tower and Fedha Plaza in Nairobi, and a recently opened centre at City Mall, Nyali in Mombasa.
By Brian Tirok
Kenya’s commercial real estate market is seeing a surge in flexible workspaces, with International Workplace Group (IWG), a global operator of brands like Regus, Spaces, and HQ, announcing plans to double its presence in the country by the end of 2025.
The company, which currently operates 12 centres in Kenya, intends to open eight new locations across Nairobi, Kiambu, and Mombasa, reflecting a broader shift in how businesses and property developers are adapting to post-pandemic work trends.
The expansion includes new sites such as The Brick Thindigua in Kiambu, Purple Tower and Fedha Plaza in Nairobi, and a recently opened centre at City Mall, Nyali in Mombasa.
The Mombasa location, spanning 1,000 square meters, offers private offices, co-working spaces, and meeting rooms, located 35 minutes from Moi International Airport. These centres aim to cater to a growing demand for adaptable office spaces as companies increasingly adopt hybrid work models.
Kenya’s economy, recovering from the disruptions of the pandemic, is driving this shift. Nairobi continues to solidify its role as East Africa’s tech and fintech hub, while Mombasa is diversifying beyond tourism into a broader commercial base.
Flexible workspaces, which allow businesses to scale operations without long-term leases, are gaining traction as firms seek cost-effective solutions amid economic uncertainty.
A 2025 report by workplace consultancy Arup estimates that hybrid working could boost productivity by 11%, though local data on Kenya’s adoption of such models remains limited.IWG’s strategy relies on partnerships with Kenyan property developers, such as Pramukh Tower Limited in Nairobi and Africa Workspace Hub Ltd in Mombasa.
These collaborations allow landlords to convert traditional office spaces into flexible setups, which some developers say are proving more resilient in the current real estate market.
Bhupesh Rana, Managing Director of Pramukh Tower Limited, noted that such partnerships have attracted a diverse range of tenants, from startups to established firms. Similarly, Anish Doshi of Africa Workspace Hub Ltd highlighted the addition of office spaces at City Mall as part of Mombasa’s evolving commercial landscape.
However, the rapid growth of flexible workspaces raises questions about market saturation and competition. Kenya’s office market, particularly in Nairobi, has faced challenges like high vacancy rates in traditional office buildings post-COVID.
While flexible workspaces offer landlords an alternative revenue stream, some analysts caution that the model’s profitability depends on sustained demand from businesses prioritizing cost and flexibility over prestige addresses.
The broader trend aligns with global shifts, where flexible workspaces are projected to account for 30% of commercial real estate by 2030. In Kenya, this growth is shaped by local dynamics, including the rise of tech-driven startups and a young workforce seeking greater work-life balance.
Yet, challenges such as unreliable infrastructure and economic volatility could temper the pace of adoption.