Kofisi Shuts Down Two Nairobi Co-Working Spaces After KSh 417 Million Loss

The Kenya Times ~ Trending, Breaking News and Videos

Kofisi Shuts Down Two Nairobi Co-Working Spaces After KSh 417 Million Loss

Kofisi, a leading provider of shared workspaces and flexible office solutions in Africa, has closed two of its co-working spaces in Nairobi after reporting a KSh 417 million Loss in 2024.

According to its annual report for the year ended December 31, 2024, Kofisi closed its Karen and Upper Hill offices to focus on larger, higher-capacity sites in Kenya.

The London-based company reported that Kenya is its largest market in Africa, accounting for four of the 11 co-working spaces it operates on the continent.

“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,” read part of their statement.

Reason Behind Kofisi’s Closing of Its Nairobi Offices

Kofisi’s decision to close two of its Nairobi offices came against the backdrop of a KSh417 million loss recorded in 2024, reversing the KSh2.1 billion profit posted in 2023.

The company said the drop was partly due to significant, unusual, one-off events that were not part of normal 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 normalized operating EBITDA (earnings before interest, taxes, depreciation, and amortisation),” the company said in its filings.

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Kofisi’s Expansion Plans and Funding Strategy

Kofisi has revealed plans to raise KSh4.5 billion through a mix of debt and equity, including project finance, equity investments, and a rights issue, to fund the rollout of new locations in 2026.

The company is set to expand its footprint across Africa and beyond, with a development pipeline exceeding 1 million square feet, including new locations in Egypt, Ethiopia, Ghana, and the GCC.

With 11 locations totaling 441,000 sq ft under management and construction, Kofisi plans to add three more locations in 2026, including its first in Dubai.

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Therefore, the combined portfolio with Workshop17 is projected to reach 1 million square feet, tripling the size since the partnership began in 2023.

Meanwhile, the company’s growth strategy focuses on high-capacity, large-scale centers such as Kofisi Square and Kofisi Kaskazi in Nairobi, offering a mix of private offices, community spaces, and hospitality services to multinational clients.

The company explained that credit products will fund the rollout of new locations, while equity will support platform investments, ensuring sustained growth and enhanced client experience.

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This post Kofisi Shuts Down Two Nairobi Co-Working Spaces After KSh 417 Million Loss first appeared on The Kenya Times ~ Trending, Breaking News and Videos and is written by Valentine Taifa