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The Raven Report > Business > IWG to Double Kenya Footprint with Eight New Flexible Workspaces in 2025
IWG to Double Kenya Footprint with Eight New Flexible Workspaces in 2025

IWG to Double Kenya Footprint with Eight New Flexible Workspaces in 2025

Nairobi, Kenya – July 14, 2025 – International Workplace Group (IWG), the world’s leading provider of flexible workspace solutions under brands like Regus, Spaces, and HQ, has announced plans to double its presence in Kenya by opening eight new workspace centers in Nairobi, Kiambu, and Mombasa by the end of 2025. The expansion, driven by surging demand for hybrid and flexible work models, aims to capitalize on Kenya’s growing status as a regional hub for technology, finance, and innovation, while supporting businesses in adapting to post-pandemic work trends.

A Strategic Expansion in Key Economic Hubs

IWG currently operates 12 workspace centers across Kenya, with the recent launch of a 1,000-square-meter HQ location at City Mall in Nyali, Mombasa, marking a significant milestone. The new centers will bring the total to 20, with a focus on Nairobi’s bustling commercial districts, the emerging business corridor of Kiambu, and Mombasa’s diversifying economy. The expansion reflects a broader shift toward flexible workspaces, as companies increasingly seek scalable, cost-effective alternatives to traditional office leases.

In Nairobi, new centers are planned in prime locations, including a partnership with Pramukh Tower Limited to establish a Regus-branded workspace. Bhupesh Rana, Managing Director of Pramukh Tower, highlighted the transformative impact of the collaboration, noting that it has driven significant returns in revenue and tenant quality while positioning their properties within IWG’s global network. In Mombasa, the City Mall HQ center, developed with Africa Workspace Hub Limited, introduces serviced offices to the coastal city’s premier shopping destination. Anish Doshi, Managing Director of Africa Workspace Hub, emphasized that the partnership enhances City Mall’s competitiveness by offering flexible office solutions, from single desks to full suites, in a vibrant business and tourism hub.

Kiambu’s inclusion in the expansion underscores the growing demand for professional workspaces outside Nairobi’s central business district. The Brick Thindigua, located just 21 meters from Kasarini Bus Stop and 28 kilometers from Jomo Kenyatta International Airport, will feature modern coworking spaces, private offices, and meeting rooms, catering to startups, freelancers, and established firms seeking proximity to Nairobi without the urban congestion.

Meeting the Demand for Hybrid Work

The rise of hybrid working, accelerated by the COVID-19 pandemic, has reshaped Kenya’s commercial real estate landscape. IWG reports that 70% of employees globally work outside the office at least one day a week, with 53% doing so for half the week or more. In Kenya, Nairobi’s role as East Africa’s tech and fintech powerhouse and Mombasa’s shift beyond tourism have fueled demand for flexible workspaces. IWG’s centers offer private offices, coworking areas, meeting rooms, and virtual office services, with pricing starting at $139 to $259 per person per month for hot-desking.

The company’s global research, conducted with Arup, indicates that hybrid working can boost productivity by 11% and save businesses up to $11,000 per employee annually by reducing traditional leasing costs. In Kenya, these savings are particularly appealing to startups and small-to-medium enterprises, which make up a significant portion of IWG’s client base, alongside 83% of Fortune 500 companies. The new centers will leverage IWG’s £50 million annual investment in its technology platform, offering partners advanced design, fit-out support, and access to a global client network.

Strategic Partnerships Driving Growth

IWG’s expansion relies heavily on collaborations with local developers. In addition to partnerships with Pramukh Tower and Africa Workspace Hub, IWG has established agreements with Karsan Ramji & Sons to introduce an HQ center at Purple Tower on Mombasa Road, Nairobi. This two-floor, 400-workstation facility, launched in March 2025, targets businesses along one of Nairobi’s key commercial corridors, offering proximity to Jomo Kenyatta International Airport and the Nairobi Expressway. Peter Kibera, IWG’s Country Manager for East Africa, noted that these partnerships bring world-class workspace solutions to emerging business districts, supporting both local and international firms.

The Mombasa City Mall center, located 35 minutes from Moi International Airport and near Nyali Golf & Country Club, exemplifies IWG’s strategy of integrating workspaces into mixed-use developments. The facility offers customizable office spaces through IWG’s Design Your Own Office service, appealing to businesses seeking tailored solutions in a high-traffic location.

Implications for Kenya’s Economy

IWG’s expansion aligns with Kenya’s economic growth, particularly in Nairobi, which continues to attract multinational corporations and tech startups, and Mombasa, where diversification is driving new business opportunities. Industry forecasts predict that by 2030, 30% of global commercial real estate will be flexible workspaces, and IWG’s aggressive growth—adding 899 new locations globally in 2024—positions it to lead this shift. In Kenya, the new centers are expected to create jobs, support local economies, and enhance infrastructure for hybrid work.

However, challenges remain, including ensuring accessibility for smaller businesses and navigating Kenya’s competitive real estate market. IWG’s focus on premium, eco-friendly facilities, such as the LEED-certified Pod in Lavington, Nairobi, aims to address these concerns by offering high-quality, sustainable workspaces that appeal to diverse clients.

IWG’s eight new centers are set to open progressively through 2025, with some already in development. The company’s multi-brand strategy, encompassing Regus, Spaces, and HQ, allows it to cater to varied workstyles, from collaborative coworking spaces to private offices for enterprise clients.

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