Occupancy levels in Nairobi’s prime offices are projected to climb further in 2026, building on momentum from last year and driven by the limited supply of such units.
The prime category refers to Grade A offices, which are in key business locations, feature high-quality contemporary designs, and are equipped with cutting-edge facilities and amenities.
Real estate management firm Knight Frank said the expected rise in occupancy is likely to trigger a slight increase in rents in key locations such as Westlands and Upper Hill.
Over the years, these areas have been primarily targeted by developers for new projects to complement the Nairobi Central Business District, where accessibility and the supply of Grade A offices have been limited.
“In 2026, prime office occupancy is expected to continue rising due to limited availability of high-quality stock, placing mild upward pressure on rents in key nodes such as Westlands and Upper Hill, although the broader market is likely to remain competitive and tenant-friendly,” the firm said.
An increase in prime office occupancy would build on momentum from 2025, when occupancy rates in Nairobi climbed from 77.71 percent in June to 81.58 percent by December, marking a 4.98 percent increase.
“This absorption was largely fuelled by strong tenant uptake in the high-quality developments completed in late 2024, such as Purple Tower and The Mandrake, underscoring a persistent 'flight to quality” Knight Frank said.
“Rents for prime space remained stable at $1.20 (Sh154.82) per square foot per month, indicating a market finding equilibrium between improved demand and available stock,” it added.
Nairobi has recorded a steady increase in prime office space over the past decade, owing to its status as a regional commercial and financial hub. Developers have sought to satisfy demand from international investors, governments, diplomatic missions, and multinational corporations.
A notable trend in the second half of 2025 was the expansion of flexible and co-working spaces.
Major operator IWG significantly extended its network, adding multiple headquarters centres in locations such as Loresho, Crescent Parklands, and Mombasa Road, contributing more than 25,800 square feet of new flexible space.
Another co-working space operator, Workstyle, also expanded during the period, opening its third Nairobi outlet.
“Furthermore, the period witnessed innovative 'change of use' conversions, with part of the former Hilton Hotel rebranding as Tulivu Coworking, and Worknest introducing a flexible workspace in Runda,” Knight Frank said.
The real estate firm said the trend highlights a fundamental shift in occupier preferences towards flexibility, cost management, and curated work environments, moving beyond traditional leases.
Co-working space provider Kofisi, however, shut two outlets in Kenya following a $3.2 million (Sh412.9 million) loss in 2024. The London-based company closed its outlets in Karen and Upper Hill in December 2025 to focus on larger, higher-capacity sites.
Nairobi’s office development pipeline remains substantial, with an estimated 2.5 million square feet of floor space under development, although most of it is expected to come to the market in 2027/2028.
“The 2026 pipeline mirrors 2025, with limited new supply as developers target post-election completions. This constrained short-term supply will most likely support higher occupancies in existing stock, as already observed in 2025,” Knight Frank said.
