International Workplace Group (IWG), a global giant in flexible and serviced offices, has announced a significant expansion in Kenya, planning to double its presence by the end of 2025. The move will see the addition of eight new centres across Nairobi, Kiambu, and Mombasa, signalling strong confidence in the country’s economic recovery and the sustained shift towards flexible work models following the pandemic.
Aggressive Expansion in Key Urban Centres
IWG, which operates brands like Regus, Spaces, and HQ, is scaling up its operations from 12 to 20 locations within the country. This expansion is a direct response to rising demand for hybrid work solutions that extend beyond the capital into other major commercial hubs.
New Hubs in Nairobi, Kiambu, and Mombasa
The expansion has already kicked off with the recent launch of a new 1,000-square-metre HQ location at City Mall in Nyali, Mombasa. This centre offers a mix of private offices, meeting rooms, and co-working spaces. Its location provides easy access to Moi International Airport and key business facilities, catering to the coastal city’s growing commercial needs. Businesses using the space can also utilize IWG’s “Design Your Own Office” service for full customization.
Further expansion is scheduled throughout the remainder of the year, with several new centres slated to open:
- HQ The Brick Thindigua, Kiambu: Opening August
- HQ Purple Tower, Nairobi: Opening September
- HQ Fedha Plaza, Nairobi: Opening October
- HQ Nairobi Business Park, Nairobi: Opening November
- HQ I&M Tower, Nairobi: Opening November
- Regus 1 Park Avenue, Nairobi: Opening November
A Strategic Shift in Kenya’s Property Market
While serviced offices are not a new concept in Kenya, IWG’s current strategy marks a notable acceleration. This rapid growth is facilitated by a “capital light” approach centred on forming strategic partnerships with local property owners and investors. This model allows landlords to adapt to the changing real estate climate by converting traditional spaces into flexible workspaces, which are proving to be more resilient and profitable.
The Power of Local Partnerships
This growth is heavily reliant on collaborations with Kenyan developers. Bhupesh Rana, Managing Director of Pramukh Tower Limited, which will host one of the new Nairobi centres, commented on the partnership’s success. “Since joining their global workspace network, we’ve seen significant returns, not just in revenue but in tenant quality and long-term growth,” he stated, adding that they are considering incorporating IWG spaces into other buildings.
In Mombasa, the City Mall location is a result of a partnership with Africa Workspace Hub Limited. Anish Doshi, the company’s Managing Director, noted the significance of the new centre for the coastal region. “Through this partnership, we are opening Mombasa and specifically the Nyali area, to the new age of serviced offices,” Doshi said. “This makes the mall even more competitive and responsive to the market.”
The Driving Force: Why Hybrid Work is Here to Stay
The expansion aligns with a global trend where companies of all sizes are permanently adopting more flexible and decentralised work models. This shift is driven by clear benefits for both employers and employees.
Benefits for Businesses and Employees
According to research cited by IWG, greater flexibility over how and where employees work can lead to improved work-life balance, financial savings, and better health outcomes for workers. For employers, the hybrid model can increase firm productivity and lead to a more engaged workforce. A recent study by IWG and consultancy Arup found that hybrid working can boost productivity by 11% and offers companies a significantly lower cost base, with an average saving of around $11,000 per employee.
A Rapidly Growing Market
The flexible workspace sector is experiencing explosive growth. Industry forecasts predict that by 2030, 30% of all commercial real estate will be flexible workspace. IWG is a dominant player in this market, with over 4,000 locations in 120 countries and a client list that includes 83% of Fortune 500 companies. The company’s growth in Kenya is part of a global expansion that saw it add 899 new partner locations in 2024 alone.
Fueling Kenya’s Economic Engines
This trend towards flexible workspaces directly supports the ongoing evolution of Kenya’s key economic zones. In Nairobi, which is cementing its status as an East African tech and fintech powerhouse, these spaces offer scalable, cost-efficient solutions for startups and multinational corporations alike. In Mombasa, a city working to diversify its economy beyond tourism, serviced offices provide the modern infrastructure needed to attract new industries and talent. By providing flexible, on-demand office solutions, the model helps companies grow efficiently while retaining top talent in a competitive market.
