Co-working space provider Kofisi is paring back parts of its Kenyan footprint, shutting two locations in Nairobi in the wake of a $3.2 million (Sh416.7 million) loss in 2024.
The London-based company closed its Karen and Upper Hill outlets in December 2025 to focus on larger, higher-capacity sites, per financial statements filed in the UK in the same month. Kenya is Kofisi’s largest market in Africa, with 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,” the company said.
Kofisi reported a $3.2 million loss for the year ended December 31, 2024, reversing a profit of $16.28 million (Sh2.1 billion) posted in 2023. The firm attributed the drop partly to exceptional items – gains from large, unusual, one-off events that are not part of a company's normal operations– booked in 2023.
“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 normalised operating EBITDA (earnings before interest, taxes, depreciation, and amortisation),” the company said in the filings.
Kofisi offers private offices, meeting rooms and shared facilities through memberships for individual clients such as freelancers and remote workers. It is similar to the American company WeWork and part of a booming global industry which also targets startups and large companies seeking collaborative and adaptable workspaces without expensive, long-term leases.
Kofisi reported the 2024 loss despite revenues rising 24.5 percent to $10.27 million (Sh1.3 billion) from $8.25 million (Sh1.1 billion) in 2023 amid higher occupancy. Kofisi said occupation rates across its offices averaged above 90 percent in the review period.
Kenya accounted for $7.6 million (Sh986.7 million), or 74.4 percent, of the company's 2024 revenue.
It was followed by Nigeria (18.7 percent) and Tanzania (0.06 percent). The firm has smaller operations in South Africa and Morocco.
The co-working space provider is pressing ahead with an ambitious regional and international expansion plan. It plans to develop three more locations in 2026, including the Gulf region.
Kofisi raised $11 million (Sh1.4 billion at current exchange rates) from the London-based investment company Falco Group in 2025 to support the development of a new facility in Nairobi and new centres in Kigali and Cairo. The firm has signed a lease in Dubai, marking its first move outside Africa.
Per the UK filings, Kofisi plans to raise $35,000,000 (Sh4.5 billion) through debt and equity in 2026 to fund new locations in the Middle East and North Africa, including Dubai, Abu Dhabi, Saudi Arabia, Egypt and Morocco.
“The company continues to pursue further funding in 2026, using credit products to fund the rollout of new locations, and equity finance for the investment into platform activities,” Kofisi said.
“The programme for credit is targeted at $30 million and for equity at $5 million over the next 12 months.”
