Kofisi has closed two of its Nairobi locations following a significant financial setback in 2024.
In its annual report for the year ended December 31, 2024, the London-based firm disclosed that it has shut down its Karen and Upper Hill offices as part of a strategic shift toward fewer but larger, high-capacity workspaces in Kenya. The company said the move is aimed at strengthening operational efficiency and improving client experience.
Kenya remains Kofisi’s largest African market, hosting four of the 11 co-working spaces the company operates across the continent. According to the company, the closures will allow it to concentrate resources on bigger sites that offer a blend of community areas, enhanced service offerings, and economies of scale.
“This approach enables us to focus on larger spaces where the client experience can be enhanced through community-driven design, hotel-style services, and operational efficiencies,” Kofisi noted in its statement.
Losses Trigger Strategic Shift
The decision comes after Kofisi reported a KSh417 million loss in 2024, a sharp reversal from the KSh2.1 billion profit recorded the previous year. The company attributed the downturn to several exceptional, one-off events that fell outside its normal business operations.
Despite the loss, Kofisi said its underlying performance remains stable. It noted that revenues on a run-rate basis are sufficient to support its central overheads, resulting in a positive normalized operating EBITDA.
Expansion Still on the Agenda
Even as it consolidates operations in Nairobi, Kofisi is pressing ahead with ambitious expansion plans. The company intends to raise approximately KSh4.5 billion through a combination of debt and equity, including project financing, equity investments, and a rights issue. The funds will be used to support the launch of new locations from 2026.
Kofisi’s development pipeline exceeds one million square feet, with planned entries into Egypt, Ethiopia, Ghana, and the Gulf Cooperation Council (GCC) region. The firm currently manages and is constructing 11 locations covering about 441,000 square feet and plans to open three additional sites in 2026, including its first operation in Dubai.
Following its partnership with Workshop17 in 2023, Kofisi expects its combined portfolio to grow to roughly one million square feet—nearly tripling in size since the collaboration began.
Related Content: How Co-Working Spaces Are Fostering Collaboration Across Industries
